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APRIL 27, 2010 MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR W/LL/AM D. SESSOMS, JR., At-Large VICE MAYOR LOUIS R. JONES, Bayside -District 4 RITA SWEET BELL/TTO, At-Large GLh.'NN R. DAV/S, Rase Hall -District 3 WILL/AM R. DeSTI:PH, At-Large HARRY E. DIF.ZEL, Kemprville -District 2 ROBERT M. DYER„ Centerville -District BARBAKA M. HF.NI,EK Princecc Anne -District 7 ./OHN 6. UHR/N, Beach -District 6 ROSh.'MARYWI/,SON, At-/,arge JAMES l,. WOOD, lynnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER - .LAMES K. SPORE C/TY ATTORNEY - MARK D. STILES CITY ASSESSOR - JERALD BANAGAN VICE MAYOR C'lTY AUD/TOR - /.YNDON S. REM/AS CITY C/,F,'RK - RUTH HODGES FRASF.'R, MMC CITY COUNCIL BUDGET WORKSHOP AGENDA TUESDAY 27 APRIL ZO10 1:00 PM FY 2010-2011 MANAGEMENT RESOURCE PLAN I. QUALITY EDUCATION and LIFELONG LEARNING (QUELL) 1. OVERVIEW Catheryn Whitesell, Director -Management Services 2. SCHOOLS Dan Edwards, Chairman -School Board Dr. James Merrill, Superintendent of Schools Tony Arnold, Director -Facilities Planning and Construction 3. LIBRARIES Marcy Sims, Director -Libraries II. CONSTITUTIONAL OFFICERS 1. OVERVIEW Catheryn Whitesell, Director -Management Services 2. CLERK OF CIRCUIT COURT Tina Sinnen C/TY HALL BU/LDING 2401 COURTHOUSE DR/VE VIRG/NIA BEACH, V/RGIN/A 23456-8005 PHONE: (757J 385-4303 FAX (757J 385-5669 E- MA/L: ctycnc!@vbgov. com 3. COMMISSIONER OF REVENUE Phillip Kellam 4. COMMONWEALTH'S ATTORNEY Harvey Bryant 5. TREASURER John T. Atkinson 6. SHERIFF Kenneth D. Stolle III. CAPITAL IMPROVEMENT PROGRAM (CIP) 1. ECONOMIC and TOURISM Barry Frankenfield, Manager -Strategic Growth Area 2. COMMUNICATIONS and INFORMATION TECHNOLOGY Gwen Cowart, Director - ComIT IV. QUALITY ORGANIZATION (QO) 1. OVERVIEW and QUESTIONS Catheryn Whitesell, Director -Management Services CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR WILLIAM D. SF~tiSOMS, JR., At-Large VICF_ MAYOR LOUIS R. JONES, Bayside -District 4 RITA SWEET BELLITTO, At-Large G/.ENN R. DAV/S, Xose Ha!! -District 3 WI/,LIAM R. DeSTI:'PH, AI-Large HARRY E. DIEZEL, Kempsville -District l ROBERT M. DYER, Centerville -District I BARBARA M HENLEY, Princess Anne -District 7 JOHN E. UHRIN, Beach -District 6 ROSEMARY WILSON, At-Large JAMES L. WOOD, /.ynnhaven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER -./AMES K. SPORE Cl7Y A770RNEY - MARK D. STILES CIIYASSF.'SSOR --./F.'RALU BANAGAN CI7Y AUDITOR - I,YNDON S REMlAS C'l7YCL6'RK -RUTHHODGF,SFRASF.R,MMC CITY COUNCIL AGENDA 27 APRIL 2010 I. CITY MANAGER'S BRIEFINGS: -Conference Room - A. INTERIM FINANCIAL STATEMENT Patricia Phillips, Director -Finance B. GASB 45 EVALUATION Susie Walston, Deputy City Manager Ken Jeffries and Reinhart Kramreither, Mercer Lyndon Remias, City Auditor II. CITY COUNCIL COMMENTS III. CITY COUNCIL AGENDA REVIEW IV. INFORMAL SESSION -Conference Room - A. CALL TO ORDER -Mayor William D. Sessoms, Jr. B. ROLL CALL OF CITY COUNCIL C/TY HALL BUILDING 2401 COURTHOUSE DR/VE V/RGINIA BEACH, VIRG/N/A 23456-8005 PHONE: (757) 385-4303 FAX (757J 385-5669 E- MA/L: Ctycnc!@vbgov. com 3:30 PM 4:30 PM C. RECESS TO CLOSED SESSION V. FORMAL SESSION -City Council Chamber - 6:00 PM A. CALL TO ORDER -Mayor William D. Sessoms, Jr. B. INVOCATION: Reverend Malcolm Puckett Avalon Church of Christ C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. SPECIAL INFORMAL and FORMAL SESSIONS March 30, 2010 2. INFORMAL and FORMAL SESSIONS April 13, 2010 G. FORMAL SESSION AGENDA H. CONSENT AGENDA I. PUBLIC HEARINGS 1. FY 2010-2011 RESOURCE MANAGEMENT PLAN FY 2010-2011 Operating Budget $1,687,819,685 FY 2010-2011 Capital Budget $ 170,517,479 2. LEASE OF CITY-OWNED PROPERTY a. 225 17th Street b. 2200 Parks Avenue 3 DEDICATION OF CITY-OWNED PROPERTY -State Board of Community Colleges 3.171 Acres at Faculty Boulevard and South Rosemont Road 4. INSTALLMENT PURCHASE AGREEMENT Acquisition of Agricultural Land Preservation (ARP) Easements a. 416 Princess Anne Road b. 3457 Land of Promise Road c. 5125 Morris Neck Road 5. BONNEY ROAD and SOUTH KENTUCKY AVENUE -Safety Improvements Acquisition by Agreement or Condemnation 6. REAL and PERSONAL PROPERTY TAX EXEMPTIONS ORDINANCES/RESOLUTIONS Ordinances to AMEND the City Code: a. §23-50 re penalty for failure to comply with cutting excessive growth of weeds or grass DEFERRED January 26, 2010 February 23, 2010 March 23, 2010 b. §23-50.1 re penalty for failure to comply in the removal of certain trees DEFERRED January 26, 2010 February 23, 2010 March 23, 2010 c. §2-224.9 re officers of the Minority Business Council d. §2-450 re increasing Human Rights Commission membership 2. Resolution to AMEND an approved Plan of Financing with the City of Virginia Beach Development Authority to increase Refunding up to $150-Million 3. Resolution to AUTHORIZE the issuance of a General Obligation School Bond, Series 2010, not to exceed $4,879,954 to be sold to the Virginia Public School Authority (VPSA) and issue as qualified school construction bonds 4. Ordinance to DECLARE City-owned property excess and AUTHORIZE the City Manager to convey same to Tidewater Community College re construction of a joint use library 5. Ordinance to AUTHORIZE the City Manager to execute a Lease, not in excess of five (5) years, with The Contemporary Art Center of Virginia at 2200 Parks Avenue 6. Ordinance to AUTHORIZE acquisition ofright-of--way property in fee simple, by purchase or condemnation, including temporary and permanent easements for safety improvements at the intersection of Bonney Road and South Kentucky Avenue and AUTHORIZE the City Manager to make a reasonable offer to owners or persons having interest in said property 7. Ordinance to AUTHORIZE the City Manager to execute a Cost Participation Agreement with Hollis Road Associates, L.L.C. re construction of stormwater improvements for Indian River Road Phase VII and the Rose Glen Manor Subdivision 8. Ordinances to AUTHORIZE acquisition of Agricultural Land Preservation (ARP) easements: a. Richard C. Cocke and Carol A. Clarke in the amount of $449,106 at 416 Princess Anne Road b. Truman D. Baxter, Jr. in the amount of $288,344 at 3457 Land of Promise Road c. Walter J., Jr. and Jennifer S. Roe in the amount of $238,428 at 5125 Morris Neck Road 9. Ordinance to AUTHORIZE a temporary encroachment into a portion of City-owned property for Wolfgang J. and Terri J. Bay to construct and maintain a bulkhead at 2404 Windward Shore Drive 10. Ordinances to EXEMPT certain organizations from Personal Property Taxes: a. The Organization Against Injustice and Social Malpractice (TOAISM) b. Life in Christ Ministries, Inc. c. Hampton Roads Community Care, Inc. d. Chesapeake Bay Wine Classic Foundation 11. Ordinance to APPROPRIATE $300,000 from the U. S. Department of Homeland Security re USAI Interoperable Communications Technology Grant in the FY 2009-10 Capital Budget 12. Ordinance to TRANSFER $200,000 from the General Fund Reserve for Contingencies to the Department of Housing and Neighborhood Preservation FY 2009-10 Operating; Budget re demolishing a structure that presents an imminent public safety hazard J. PLANNING 1. Application of LIVING FAITH CHRISTIAN FELLOWSHIP/MARSH WOOD PROPERTIES, LLC for a Conditional Use Permit re a religious use at 5257 Challedon Drive DISTRICT 2 - KEMPSVILLE RECOMMENDATION APPROVAL 2. Application of BAYLAKE UNITED METHODIST CHURCH for a Conditional Use Permit re adding a lot to be used as open space to the existing church site at 4309 Blackbeard Road DISTRICT 4 - BAYSIDE RECOMMENDATION APPROVAL 3. Application of JEFFREY D. BLAKE (OPEN AIR JEEPS, LLC) for a Conditional Use Permit re an auto repair garage at 800 Seahawk Circle, Suites 128 & 129 DISTRICT 6 -BEACH RECOMMENDATION APPROVAL 4. Application of KUBER HOSPITALITY CORP. for a Change of Zoning District Classification from H-1 Hotel District to Conditional B-2 Community Business District and Conditional H-1 Hotel District re a retail center at 1808 Diamond Springs Road DISTICT 4 - BAYSIDE RECOMMENDATION APPROVAL Application of LAKE GEM D8, L.L.C. for Modification of Conditions 2, 5 and an additional condition (approved by City Council on May 13, 2009) to allow operation of the Outdoor `Green' Market the weekend prior to Thanksgiving and Christmas holidays in addition to the days previously approved, allow homemade items as well as handmade items and request a manned table with literature advertising the Red Mill Marketplace Shops at 2181 Upton Drive DISTRICT 7 -PRINCESS ANNE RECOMMENDATION APPROVAL K. APPOINTMENTS MINORITY BUSINESS COUNCIL OPEN SPACE ADVISORY COMMITTEE PUBLIC LIBRARY BOARD SOCIAL SERVICES BOARD TOWING ADVISORY BOARD L. UNFINISHED BUSINESS M. NEW BUSINESS N. ADJOURNMENT FY 2010-2011 Budget Schedule DATE I TIME ~ EVENT _.~_ ~, ~~.. -. May 4 ` 4 00 ,6 00 PN1 Workshop May 11 6:OOPM 'ADOPTION LOCATION ,..x~~ .~ ..,. City Council Conference Room City Council Chamber **~***** If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 Agenda 04/27/2010gw www.vbeov.com -1- MINUTES VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia April 27, 201 D Mayor William D. Sessoms, Jr., called to order the BUDGET WORKSHOP re QUALITY EDUCATION and LIFELONG LEARNING (QUELL) in the City Council Conference Room, Tuesday, April 27, 2010, at 1:00 P.M. Council Members Present: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Zlhrin, Rosemary Wilson and James L. Wood Council Members Absent: None Power Outage 1: 07 P.M. - 5:40 P.M. April27, 2010 -2- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITY EDUCATIONAND LIFE LONG LEARNING (QUELL) 1:00 P.M. ITEM # 59841 Catheryn Whitesell, Director -Management Services presented an overview of Quality Education and Lifelong Learning encompassing Virginia Beach Ciry Public Schools and the Library Department. Virginia Beach City Public Schools was represented by Chairman Edwards -School Board, Dr. James Merrill, Superintendent of Schools and Tony Arnold, Director -Facilities Planning and Construction (Capital Improvement Program). Farrell E. Hanzaker, Chief Financial Offrcer and others were in attendance to respond. As depicted by the graph, the two departments comprise 49.1 % of the total Operating Budget. After Schools, Marcy Sims, Director -Libraries, responded re the Library Department Budget. This Business Area saw a $66 Million decrease in Revenue, predominately on the School side. $1.3-Million of this amount is on the Library side. ~~"~ '~ ~~~ Qualit Education and ,~: {~ ~ ~~~ 1. 1 ~~ ~ ~ x.; lifelong learning "+.~.'v Quality Education and Lifelong FY 2009 FY 2009-10 FY 2010-11 Learning Actual Adjusted Proposed Change Budgeted Expenditures $ 799,469,537 $ 894,758,143 $ 828,680,848 -7.38% FTEs 10,782.32 10,717.22 10,700.87 -0.15% • Includes Library Department and Virginia Beach City Public Schools • City Council Goals: - Create a financially stable City providing excellent services - Grow the economy Quality Education and Lifelong Learning 49.1 of Total operating Budget April 27, 2010 -3- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFE LONG LEARNING (QUELL) ITEM # 59841 (Continued) ~., r;~ia.sF:~~r ~F°~"~~"~~~'G~i Quality Education and .~~ } ~~~ ,~ fr ~~ ~ -' Lifelon learnin Expenditures Libraries 2% Schools 98% ,s.-_ti '~it3iA ~ 81~q~'t\'4. S ` '~y~ c~7r)t ~V S) 4t .. $900,000,000 $BOO,ooo,ooo $700,000,000 { $600,000,000 i $500,000,000 $400,000,000 { $300,000,000 -~ $200,000,000 -! $100,000,000 { $o 42' Charges for Services Federal OtherLOCaI 11% ^ State ^ City ^ Fund Balance/Reversion S School Revenue By Source $3 30,1 , X 62 $3 $3 -762, $9 'e $7 $7 $3 $3 _ _ S; FY 2009-2010 FY 2010-11 FY 2010-11 Adopted City Manager's School Board Proposed Budget ' Adopted $877,860,873 $813,097,451 $825,197,287 • Other Funds ^ Reserves/Fund Balance City Contribution ^ Federal ^ State April 27, 2010 Revenue Sources -4- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFE LONG LEARNING (QUELL) Virginia Beach Schools ITEM # 59841 (Continued) Chairman Dan Edwards advised this will be addressed as The Schools' Biennial Budget. Because of the impact next year and the utilization of Reserve Funds, the staff will be speaking throughout this presentation on a Biennial Basis. Dr. Merrill will follow with the details. Chairman Edwards has never experienced a more challenging development process. It was never a question of whether Schools would have a shortfall, it was a matter of how large the shortfall. The Superintendent's estimates of needs was actually based on Governor Kaine's early Budget and the School Board agreed in March to meet the Submission Deadline. The House Version of the Budget was utilized. That actually drove the deficit from Governor Kaine's Budget which at that point was $32.5-MILLION down to $47.5-MILLION. The Local Composite Index was also an issue. Governor McDonnell unfroze it, which had almost a $IS-MILLION effect. Ultimately Schools were made whole by the funds which would have been lost had the Composite Index remained unfrozen. Earlier Recommendations Raising Class Size (Grades 4 and S) Raising High School Class Floor Cutting Department Budgets 3% Reducing Salaries/Contracts (in year two) The Shortfall is now $21.2 MILLION. Last week, the School Board amended its Budget to take into account this new reality for a final Budget at $639.2-MILLION. Aggressive Efficiency Progam Personnel and Department-Related Strategies Eliminate Central Office Positions Changed Overtime Policy/Revised Health Care Plan (Benefits eligibility for certain employee categories) GASB-45 Cost Reduction (Due to Healthcare Plan Eligibility Change) Instituted Department Saving Strategies $ 6,132,000 $ 3, 754, 000 $ 2,254,000 $ 780, 000 Savings to Date Cumulative Total of Cost-Saving Strategies $12,920,000 $23. S Milion April 27, 2010 -5- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFE LONG LEARNING (QUELL) ITEM # 59841 (Continued) Dire Outlook for 2011-12 Projected Shortfall = $34.5-MILLION Chairman Edwards noted the solid leadership of Dr. James G. Merrill -Superintendent of Schools. The Board appreciates his proposed Operating Budget which they adopted last Tuesday, April 20, 2010. Twenty-seven (27) additional positions were eliminated between this current year and next year. The Five Year Budgeted Revenue (in millions) graph depicts a three (3) year downward trend in Revenue. Chairman Edwards referenced Compass to 201 S: A Strategic Plan for Student Success. Chairman Edwards referenced the recognition of Green Run High School, selected as one of three top schools in the United States based on their performance re advanced placement examinations by the College Board. The College Board was in attendance to present the check for $45, 000 to the Principal at Green Run. Dr. Merrill advised six (6) of our High Schools ranked in the top S% of the Nation. In the Commonwealth, the City out performed the State in the on-time graduation and dropout rate. The on- time graduation rate is a respectable 84.2% against the State's 83% and a dropout rate of 6%, almost 2% better than the State's average. The Class of 2009, even though the enrollment has been going down. expected $25, 782, 593 in scholarships (most ever awarded). Three (3) Elementary schools were recognized as Title I Distinguished Schools by the Virginia Department of Education. Thirty-seven (37) schools received the Award of Excellence from Governor Kaine and the Virginia Board of Education. Students received 4,421 Industry and Business Credentials. Tony Arnold reflected the Capital Improvement Program (CIP). Enrollment this year is about 69, 500 (12'" consecutive year of decline). However, there were about 600 more than projected. There are 86 school buildings with 10 Million square feet of space. At the Elementary level for the first time in sixteen (16) years, enrollment was up about 161 students. At the middle school level, enrollment was down about 11 S. At the High School level, enrollment was down about 235. The Renaissance Academy opened this past January. Over the past decade, twenty-two (22) Elementary Schools have been modernized or replaced. A new Maintenance Facility for the School Plant has been built. These encompass approximately $312-Million. Completed Projects CIP # School LEED Status 1-235 Windsor Oaks Elementa School LEED Silver 1-085 Renaissance Academ LEED Gold Projects Under Construction CIP # Construction Start School LEED Status 1-234 2007 Virginia Beach Middle LEED Silver School 1-085 2009 Pupil Transportation LEED Silver Maintenance Facili 1-019 2009 Great Neck Middle LEED Silver School 1-026 2010 College Park LEED Platinum Elementa School April27, 2010 -6- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITY EDUCATIONAND LIFE LONG LEARNING (QUELL) ITEM # 59841 (Continued) Projects Under Design CIP # Construction Start School LEED I-106 2011 Kellam Hi h School TBD Princess Anne County Training and Union Kempsville High School Museum is about completed. A Memorandum of Agreement has been executed. This is astate-of--the-art facility and will officially open its doors in approximately another month with a Grand Opening in June. The Pupil Transportation Services Maintenance Facility on Harpers Road is about `half built and will open later this Fall. Ferrell E. Hanzaker, Chief Financial Officer, advised Schools have not budgeted contingency/Reserve. What contingency would be is whatever Reversions the Schools have at the end of this year. Obviously, there will be Reversions at the end of this year. Schools are also looking at shortfall from the State. It will probably be in the neighborhood of $20-Million; however, approximately $11-$13-Million of this has to go back to the State. If there is a shortfall this year from City revenues that comes off the top April 27, 2010 -~- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFE LONG LEARNING (QUELL) ITEM # 59842 Libraries 2:00 P.M. Marcy Sims, Director -Public Libraries advised re the FY2010-2011 Management Resource Plan Libraries: ,,;: ,,zs~, '~ ~%;y, I O ~ 1 . ~ ~ `. -.~ Public libraries 1,Mt.P"i f,, Administration, GrowSmart, 1,985,744 2,047,947 23.00 1,860,963 21.50 -185,984 and Records Management Central and Area Libraries, 9,258,149 9,937,651 206.35 9,035,288 173.50 -902,363 Bookmobile and Special Services for the Biind Library Collections, 4,164,817 4,683,065 29.00 4,411,598 27.00 -271,467 Cataloging, and Technology Services Wahab Law Library (funded 245,303 288,607 2.50 332,800 2.50 44,193 by court filing fees) Total 15,654,013 16,957,270 260.85 15,640,649 224.50 -1,316,621 -36.35 rr~^ t.+~... {~~zr: ~~ Public libraries ~r, c~~w ~ .r' _r,r' • FY 11 Budget - $15,640,659 z°i ''9%.' ^ Personnel ($12,006,486) ^ Books and Materials ($1,885,770) Operations ($1,415,593) ^ Fund 130 Law Library ($332,800) Reduction Criteria: •Maintain core services directly related to City strategies and initiatives •Preserve the $26M investment made in new and renovated libraries and new bookmobile •Recoup investments in technology made over the past years •Offset some future staffing and operating costs for the TCC-City Joint Use Library in September 2012 April 27, 2010 -8- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITYEDUCATIONAND LIFE LONG LEARNING (QUELL) ITEM # 59842 (Continued) Libraries Reduce Community Library Hours Reduce Neighborhood Library Hours Central Library Staff Collection Management Some-Materials Acquisition Reduction Records Management Eliminate Microfilming for Circuit Court Director's Office Reductions Efficiency Savings -Library Total Reduction -$621,106 -15.5 (6) No -$212,311 -6.5 (2) No -$233,039 -8 No -710,404 -5.00 Partial, (3 FfE and:$250,000 library materials totaling $401,989) -70,524 -1.00 No -69,055 -1.00 No -78,655 -2.35 No -$1,995,094 -39.35 In total, the final Library Department reduction was 7.8'0. FY 2011 Department Initiatives and Projected Highlights - Redesign Library services to reflect reduced hours and staff at area Libraries - Preparation for opening of TCC-City Joint Use Library: • Develop Memorandum of Understanding for TCC -City Joint Use Library • Upgrade VBPL's integrated Library system (ILS) and bridge with State ILS system • Implement Phase II of RFID Technology -Materials Handling - Implement "Job Central" at nine (9) Libraries in partnership with Opportunity-Inc One-Stop Workforce Center April 27, 2010 -~.,, ~s~.~~ .,.~,7 Pu bI is Libraries ,t~ =~ ~~, f:• to 5Y ~~ ~~=~~~ ~ ~ Target Reduction ':~..'+y . ~' -9- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITY EDUCATIONAND LIFE LONG LEARNING (QUELL) ITEM # 59842 (Continued) Libraries FY2011 Department Initiatives and Projected Highlights - Implement South Hampton - Increase Revenues: • Non-resident Fee • Meeting Room Fee • Overdue Fines • Photocopy Fee Roads Smart Beginnings Early Learning Challenge Grant Estimated New Revenue: $35/year $83,000 $IO/$25/hour $75,000 $0.20 to $0.25/day $75,000 $0.15 to $0.20%opy $17,400 Community Fundraising: Friends of the Library $50,000 Challenge Grant Libraries are prohibited from charging for services from the National Library for the Blind. Apri127, 2010 -10- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59843 2:33 P.M. Catheryn Whitesell, Director -Management Services, provided the overview. ~,n,l.++,+,. i i t''8-9. *f~QS*6~< oi~ !yy fG ~^~' ~~ ~ ~~~~ Constitutional Officers :.. 't~. _ . - ' f FY 2009 FY 2009-10 FY 2010-11 Constitutional Ctfficers Actual Adjusted Proposed Change Budgeted Expe nditures $ 54,948,520 $ 55,142,905 $ 54,382,867 -1.38% FTEs 816.06 800.06 777.70 -2.79% Category includes the City Treasurer, the Commissioner of the Revenue, the Clerk of the Circuit Court, the Commonwealth's Attorney and the Sheriff City Council Goals: - Create a financially sustainable City providing excellent services Fee/Taxlncreases: - Elimination of the grace period be for an administrative fee is proposed on delinquent fees Constitutional Officers 3.2q of Total Operating Budget -k~ Y', t ; t. ttv $ y, ~~x , ~ ,a,~t~~~ Constitutional Officers t ~y.I.~ 4i~Y"={I ~4 ~`~~~~"~~ Expenditures Revenues 14.1% 67.0% >' Commissioner of the Revenue ^ Clerk of the Circuit Court Commonwealth's Attorney s Sheriff s City Treasurer 0.4% -; Charges for Services State ^ City ^ Fund Balance 42.5% ^ Administrative Fees ^ Federal Other Local April 27, 2010 FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59843 (Continued) i~ ; ~~ x , City Council Policy ~ t ~ ; ~ 3 _ 3J. ~ r _- .,~~~;_ 'title: Not Supplanting State, Federal. anA Private funds with Lncal FunAt In<tex Nurnl>gr: 4771A Date ~ Adoptl<>m. 2/°(i/°1 Ltatr of Revision: Pag«' 1 of l 3.0 Puroou end Nw~d Thor of Virgin a Re.xh r .. mpnrtant, t>en«licial s a from a wide v ety of Stator, Federal, and private r r c aggn<Aws~ a wgli ax from City p ingrams whirh rely on h>ndhtg boor these age ciex. Thwsw xgenciws a .critical parnrgrt with the City and [he School system in the Proviso>n o} programs to our c nitY. Wit«n these .tgen r tenninat« prngra inq, re<itv:e s entail lun<linq, i not 1>e a twd that the City M Virgin a fSea<'h will r C s a tlw m p ngra Thw abiilty [ .. tha fin ial rest><+nsihility for thgs without itV~s c s ~ signifi andy i mpar.ting other servrtq areas which are sol«IY the responsibility al the. City, nr without hay n g to rest taxes, is limited. 2.0 Policy It is the policy of City Council to prevent, to the extent possible, the shifting of financial responsibility for State, Federal, or privately funded programs to the Citizens of Virginia Beach by not supplanting those funds with local funds when those agencies reduce funding to various community programs that rely on that funding. 3.3 Ttre Department of Management Services will provi<i« inforcnatinn to the City Manager nn a pr-'rindi< twsis that repot any reductions in funding from State, Federal, or pt ivate trnncros that arq mxpected to adversely affect a the cltitem of Virginia Rgac h. When se rely affmctod by such roduc tinny, the City s M wager net th« Dmpar of Manager rant x•rvi<.«t wili <letwrrnine what acuona, if anY, may hen nec«.ssary Y r to nsitigatw the im Patt on l x al xerviees. 3.2 The. City Manager wilf report to Ciry Cuuncii any instances wh«re r«ductinn.s in State, Fader ai, nr private. funding will haves a severe enough effect on services that Ccxmcil action it necessary. 9.0 Resoonsibilhv end Authorltsr The D«parrnsent xf M:m:tgensgnt Services is etponsii>i« for reporting to th« CitY Manag«r any r«<hu'.tinns in Stat«, r Federal, nt private luntlinq that could have. an effect on ~er'vic es provided to Ch« t'.ihzes n( Virginia Heacfr, Safe Community Business Area Commonwealth's Attorney $7.7 million $7.65 million -0.66% - $95,575 Clerk of the Circuit Court $2.53 million $2.5 million -0.012% + $215,860 Sheriff $36 million $36.4 million +1.24% - $681,338 Quali ty Oreanization Business Area Commissioner of the Revenue $3.8 million $3.4 million -10.61% - $34,062 City Treasurer $5.1 million $4.35 million -14.41°rU -$66,882 NOTE: The additional reductions from the Compensation Board based on the final approved State Budget are still not final, we hope to have final numbers prior to reconciliation. Apri127, 2010 ~~T~~ ~j~4.~}NSA.R~~;. I~P~ `~ "'~y`~~~ Constitutional Office Reductions t" ~! • t-~ $ f in Pro osed FY 2011 ..~ .~ p r.t -13- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59844 (Continued) Clerk of Circuit Court 2:33 P.M. ~~ '~ .~r, Clerk of the Circuit Court ~. ~~~~~ Target Reduction --ti,.;..- i i Mid-year FY 10 cut in state funding resulted in the loss -$275,636 -8.00 No of 11 positions (10 State and 1 City) and reduced customer service hours to the public (from 42.5 to 31.5 hours per week), and shortage of Deputy Clerks to assist judges in the courtrooms. The budget requested restoration of 8 positions. Total Reduction. -$275,636 -8.00 Reduction Criteria: YMeet all critical mandated services Reduce customer service hours Clerk of the Circuit Court - The Clerk of the Circuit Court's Office was able to prevent further reductions in the number of hours serving the public - This Office remains an "excess fees "office in which the revenues generated exceed the cost of collections The Honorable Tina Sinnen, Clerk of the Circuit Court, advised she is not funded sufficiently. Over 800 duties and services are all mandated by the State. The loss of eleven (11) full time employees has been devastating. The staff has been taking furloughs through September. By far, her staff is the best in the state. The Circuit Court is open 8:30 A.M. to 4:00 Monday, Tuesday and Wednesday and 8:30 A.M. to 1:00 P.M. on Thursday and Friday. The Circuit Court applied for a Federal Jag Grant and did receive same in the amount of $25, 000. Apart-time Clerk was hired to come in and assist with the Criminal Sentencing orders. This resulted in a 99% accuracy. John Atkinson, City Treasurer, with Mary Beth Southern (in his office) set up a program, utilizing available resources, to collect restitution for the Circuit Court cases. The General District and Juvenile Court are also working on the same procedure following their lead. Ms Sinnen believes this has the potential to be a nice revenue stream for the locality and expressed appreciation to Mr. Atkinson and Ms. Southern. When the eleven (11) employees left, ten (10) were State employees and one (1) was a City Employee. Ms. Sinnen said their part-time funding has gone all the way from $88,000 down to $25,500 and she would like these funds increased. Volunteers have been utilized. April 27, 2010 -14- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59845 Commissioner of the Revenue 3:00 P.M. Catheryn Whitesell, Director -Management Services, provided the overview. 93% of the Commissioner's Expenditures entails personnel and 7% are Operating Costs. .'.; ~M.;,,, ~'=~ ~. ~~~ -~ y.? Commissioner of the Revenue 1 `c4~~''%~r~-'`'•`~`. Proposed Expenditures Commissioner ofthe Revenue $3,815,157 $3,744,121 DMV Select 84,172 93,676 Total $3,899,329 $3,837,797 NOTE: The additional reductions from the Compensation Board based on the final approved State Budget are still not final; we hope to have final numbers prior to reconciliation. ~ ;~<~-fir,:';; ,'s",; ". '" '''y'~ct) {ti~ Y. r'? ''~ ? ~ ~ ¢ '';~ '~,,,~ L. Y ~~, ~:~.. Commissioner of the Revenue Proposed Funding City $2,959,755 $3,068,442 DMV $16s,398 $93,6767 State $784,176 $780,202 Total $3,899,329 $3,942,320 1City FTE reduction is 19%. 7Revised DMV revenue estimates are $166,000 for FY10 and $178,000 FYll. This would increase available DMV funding by 32% and 42% respectively. 35tate FTE reduction is 20%. 55.051 $2,629,740 45.001 ($438,702) 4.00 $83,6677 2.93 ($10,009) s.oo3 $6z7,r7s a.oo3 ($1s2,927) 64.05 $3,340,682 51.93 ($601,638) FY10-11 Proposed Funding ^ City •DMV ^ State $86,337 -l § April 27, 2010 60.24 $3,347,046 49.00 -$397,075 3.37 $83,667 2.93 -10,009 63.61 $3,430,713 51.93 -$407,084 FYii Budget -15- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59845 (Continued) Commissioner of the Revenue ~~.- ` ~ ` Commissioner of the Revenue ~ ~ ~~ t , ~. ~ f-;~ 15%Target Reduction ,` ,`, ®® Assessment Staff-Personal Revenue ($214,265) (5.68j No Assessment Staff-Business Revenue ($257,947) (5.00) No Assessment Staff-Com pl{a nce. ($60,144) (1.00) No Additional Current Operating Costs ($32,610) (0.00) No Total Reductions ($573,373) (11.68) ~`~ ~~. ~. ' `~ ~~ Commissioner of the Revenue ry f •- , - Affects of State Fu nding Reductions ®®' State Funding $627,275 4 (1) Cost of Employees Doing State Work $352,139 ($SS,000) Residual State Fu nding for City Use $275,136 n^' I~~.,:i4 ~, .. e ;'-h%rt~ ,;.~,..~ r_ s' ~.:~ ~y4 ~~>_ ~~, :, Commissioner of the Revenue . t . ~., ~:~'"•~-~«~' ~ ` Affects of City Funding Reductions Personal Revenue 4 4 $18,600,000 Business Revenue 5 $16,600,000 Compliance 1 1 $700,000 Personnel cuts* equate to 12 FTE's resulting in $36,000,000 in delayed/lost revenue 'Represents a 19% cut in city personnel ; 20% cut in state personnel April27, 2010 -16- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59845 (Continued) Commissioner of the Revenue ..,,,, 'e+`~ ~~~ a~;tsfy rc,,.««'',+• a~a t; ~ j YQ` ~~ G 7 e +. Z. i ~. ~~~,. ~' j' Commissioner of the Revenue ~~ ~~"''~'`^; ~,ja Initiatives & Milestones i, ~-: 75 .. ... ...._. .. .. __. __.. __ 70 ~.. .... .._ ..... ...... .... r 65 .... .._ _ ... _ ......_. ...... .._.. ._ .... ~`u a• 60 .......... ._..... .._.... .. ... ..... E n 65 _ _ ,- ..._.......~ r._~ ~. _~.... i W 97/98 98/99 t 99/0-0 ~1 0-0/Ol 01/02 D2/03 03/04 04/05 ~ OS/O6~ O6/07~ 07/08 TTT} 08/09 09/10 ~~~ rCOR ~ 77 I 76 ~ 75 71 ~ 69 ~ 69 ~ 64 ~ 662 ~ 61 ~ 61 _ ; 61 ~ 61 _ j 1998 DriveThru Appeals; AdmbsbnsTaa Audits; Consolidated oi8ce hom 11 to 5 dlvfabns 1999 Goss~trairsed staN; Created online forms 2000 Consolidated ofOce from 5 to 4 divisions; Business license decal eliminated; Began outside services; Automated refunds of personal property bills; Consolidated audits. Community Events License instituted. 2001 Boa[tax reporting 2002 Vehicle decal elimination; Milibryexemption process 2003 Launch of tool Vehide Registration (LVR~with Department of Moor Vehicles (DMV) 2004 Cross Training Complete-Telephone Routing System Installed; Ciry Council administration of non-proft exemptions 2005 Earned incometax credit asslrtance; Documentlmaging; Reduction of office space 2006 Consolidated office from 4 [0 3 divisions; DMV Select; APZ 1/Tech Zone Licensing begins 2007 New real estate tax dab management; Admissions tax to sdwol events exempted 2008 Ciry non-profi[exemption policy amended 2009 Participatory sport tax amendetl 1030 State Cgarette Stamps Sales Commissioner of the Revenue Proposed Solutions Problem: The Commissioner's Office generated $313, 000, 000 in assessments for the City in FY09. The City Manager's proposed cuts for FYII will delay and remove available City revenue (Slide S). Solution: Cut expenses, but also save revenue, and improve compliance. How?: - Eliminate two FTE's (Deputy Commissioner and Revenue Agent) = savings $151,000 per annum - Downgrade two FTE's & staff as PT Investigators =save $46, 000 and generate $400, 000 per annum - Fund vacant Auditor Position -generate $350, 000 per annum April 27, 2010 4.28.10-W To: Mayor Sessoms and Members of the City Council From: Phil Kellam, Commissioner of the Revenue Re: FY11 City Budget Thank you for your patience and consideration in yesterday's briefing. Since my presentation, two members have asked for the amount of funding necessary to avert the reduction in revenues forecast for FY11. Specifically, $355,000 will return funding for 8.5 FTE's: - (6 FTE's) Revenue Agents - (1 FTE) Auditor - (2 PTE's = 1 FTE) Revenue Investigators - (3 Seasonal PTE's = 0.5 FTE's) Clerks This revision to the city manager's proposed budget will still reduce city expenditures $205,000 by eliminating 3 FTE's: - (1 FTE) Deputy Commissioner - (1 FTE) Revenue Agent and by downgrading: - (2 FTE's) Revenue Agents to (2 PTE's = 1 FTE) Revenue Investigators which equates to eliminating an additional FTE. I respect the call for all agencies to contribute to cutting city expenses during these very difficult economic times. I hope you will find this proposal a productive solution and acceptable as you budget for the City's priorities. -17- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59846 Commonwealth's Attorney 3:30 P.M. The Honorable Harvey Bryant, Commonwealth's Attorney, advised his Resource Plan. Commonwealth's #~, ~~. <~ Attorney's Office Judicial 6,913,253 Consumer Affairs 337,270 Victim Witness 239,800 DEA Seized Property 82,324 .Victim Witness Grant 294,786 Tota I 7,867,433 Total without DEA 7,785,109 NOTE: The additional reductions from the Compensation Board based on the final approved State Budget are still not final; we hope to have final numbers prior to reconciliation. 6,765,667 77.9 6,911,671 77.9 146,004 235,810 3.0 0 0 (235,810) 258,603 4.0 212,438 3 (46,165) 114,500 200,000 85,500 323,638 6.5 322,968 6.5 (670) 7,698,218 91.4 7,647,077 87.4 (51,141) 7,583,718 7,447,077 (136,641) FY11 Budget ^ Personnel ^ Operating rT~~.w st.Hl ~,ti,r• GiA ti f ~ ~'7 ~~ ~_ ~~ Commonwealth's Attorney's Office ~ '.~ rMA~jj FY11 Challenges State budget estimated reduction: $199,851 :-Will need to cut 3 additional F'fE's Non mandated programs: e.g. DUI misdemeanors and Domestic Violence FY11 Department Highlights rViolent crime prosecutions have increased from 2008 - 2009 -Homicide prosecutions have doubled yDistrict court misdemeanor prosecutions (mostly DUI) have increased 70% rProsecuting almost 2,200 Domestic Violence cases a year April 27, 2010 -18- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59847 City Treasurer 3:42 P.M. John T. Atkinson, City Treasurer, presented the following: .., .. ,, ~,.- :~ , x ~., d .. ~»r~• pity Tr~a~ur+~r ~~10TEe The _d~itic ^__': resfuetion3fr~m the ~. mpe~at~on ~c_rtl b?s-_d on the f€n~i =p~rc~.~d52ata Eu~~exer?st ,nctfna(;r,ehcpatcn_vafine!numb=rSRri~rt~re.flneiii3t€~n. F1+11 Funding FY 11 Budge# Loci S3.6t2_Sil The City Treasurer distributed a sheet re Collections, Transactions and Bills Mailed (Payments taken January 1, 2009 through December 31, 2009.) April27, 2010 City S~,Ofi'~,>bfi 5~5,L~~,382 7.53 55,C~&i,352 '?_fs3 s4,3~T3,4QS 57.~t -$73Z,f?~1 ~f? 3§Li re ~ -19- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59848 Sheriff 4:00 P.M. The Honorable Ken D. Stolle, Sheri advised: r~~~ rPiN~a ,stAc~' r$°~~' »,,,y.~?~ FY31 Budget 'fay` ~ ~y Sheriff ^Personnel {~ { ~;' ~ ' ^ Operating "~ _ ~.,.µ~~;'"~ and Corrections Reserves ^ Transfers Sheriff's Office 2,148,690 1,750,101 23.43 2,051,430 23.43 301,329 Court Support Services 3,191,268 3,262,299 63.84 3,075,259 61.84 -187,400 CorrectionalOperatlons 25,750,849 26,385,155 362.60 26,456,627 362.60 71,472 Work Release 151,739 134,121 1.00 - - -134,121 Central Booking 1,879,256 2,031,662 37.00 1,958,626 37.00 -73,036 D.A.R. E. 584,877 682,151 11.00 707,608 11.00 25,457 Sheriff's Workforce 925,513 940,518 13.00 898,888 13.00 -41,630 Law Enforcement Training 107,804 139,566 1.00 141,182 1.0 1,616 Inmate Services 591,613 668,608 11.50 854,024 14.50 185,416 Transfers & Reserves 436,513 276,102 - 574,551 - 298,449 Total 35,768,122 36,270,283 524.37 36,718,195 524.37 447,912 NOTE: The additional reductions from the Compensation Board ba sed on the final approved State Budget are still not final; we hope to have final numbers prior to reconciliation. "r1h~P'd..A. `°'`~t° ~p y~11 • ~ j ~.1 ~~_ ~; Sheriff and Corrections `~'"- ~-' 11-~~~ 5% Target Reduction s a Central Booking $966,139 17.0 Yes Total Reduction* 966,139 17.0 `Reduction was on the City's General Fund Transfer, not total Budget Reduction Criteria: Reduce Central Booking (City Funded Program) to meet target reduction yUtilized Fund Balance April 27, 2010 -20- FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59848 (Continued) Sheriff FY2011 Challenges - State revenue reduction of over $3, 000, 000 FY2011 Department Highlights - Pursue additional revenues to absorb State reductions A Total of 1, 252 are housed in a jail designed for eight hundred (800) inmates. This facility is run like a maximum security prison. The population has very dangerous inmates that will be sent to Red Onion (Supermax), Wallens Ridge (Max) and Sussex 1 (Death Row) upon their convictions. Finances Funding (FY- 2010) $19,381,205 State $12,394,250 City $ 321,200 Federal Finances Revenue Shortfall $1,795,562.00 $ 935,384 $ 228,108 $ 58,070 $ 575,000 s State FY 2010 Compensation Board Salary Reduction i~irginia Retirement System and Group Life Reduction Additional Salary Reduction 4`" Quarter Per Diem Reduction April27, 2010 -21 - FY 2010-2011 MANAGEMENT RESOURCE PLAN CONSTITUTIONAL OFFICERS ITEM # 59848 (Continued) Sheriff Finances Funding (FY-2011) $18,231,205 State $11,821,414 City $ 240,900 Federai Reductions From State $ 978, 000 - Coamp Board Salary Reductions (Same as Last FY) $1,100, 000 -Projected loss in Revenue for Per Diem Jail Reimbursement Formula has been restructured No longer reimbursement for Local Responsible Inmates State Responsible reimbursement after two (2) years Budget Plan FY 2011 Make up State shortfalls Sher~'s Office Plan Cuts in staffing Increasing revenues Workforce Housing federal inmates Use of Volunteers 2007 citizens donated $4,999,982 worth of volunteer hours to the Sheriff's Office. The Volunteer programs consisted of Prison Life Learning, Mentoring and Student Interns. According to the Office of Volunteer Resources, the Sher~'s office had almost one-third of all the Volunteer hours City-wide. Sheri Stolle advised this is the worst fiscal crisis in this history of the State. The needs of the Sher~'s offrce are being addressed to compensate for these revenue shortfalls without compromising our primary purpose, pubic safety. April 27, 2010 -22- FY 2010-2011 MANAGEMENT RESOURCE PLAN ECONOMIC VITALITY CAPITAL IMPROVEMENT PROGRAM ITEM # 59849 4:17P.M. Barry Frankenfield, Manager -Strategic Growth Area presented information re Economic and Tourism: Economic Vitality CIP Project Types FY 2010-31 Six Year Plan bllk~tbn 300,000 New FMlkb~ Izl. __ . . zMHbn 050,000 Acqubklon ill, $90,000,000 Economic Vitality CIP Development Strategy Site acquisition: The State provides $7.5-Million, which the City matches. New facility acquisition funding, for two projects: Economic Development Investment Program (EDIP) and SGA Projects. EDIP is funded with a 12 Cent per pack dedicated Cigarette Tax funding stream Maintenance: The Amphitheater is 1 S years old and requires maintenance Rehabilitation is funded utilizing Parking Enterprise Fund revenues for improvements to Oceanfront Parking Garages Highlighted Economic Vitality Projects 9-060 Oceana & Interfacility Traffic Area (ITA) Conformity and Acquisition supports the BRAC suggestion to mods APZ-1 density 9-500 Virginia Beach Amphitheater Capital Maintenance meets the Virginia Beach Development Authority Amphitheater Maintenance Agreement to fund 56. S% of capital maintenance costs 9-081 Strategic Growth Area (SGA) Projects supports planning efforts and infrastructure improvements to implement SGA plans 9-141 Economic Development Investment Program (EDIP) supports the City Council goal of "Growing the Economy" and the Economic Development Strategic plan. 9-082 Oceanfront Garages Capital Maintenance allows for needed 9`" and 31'" St. Garage maintenance repairs April27, 2010 Ill, $15,000,000 - 23 - COMMUNICATIONS AND INFORMATION TECHNOLOGY CAPITAL IMPROVEMENT PROGRAM FY 2011- FY 2016 ITEM # 59850 4: 20 P.M. Gwen Cowart, Director - ComIT, presented the following.• Cornmu~i~atiansa~d Inf~rma~~c~n7ec~#~t~©iag~Projects~ by Strategic P3~sin~s~ ~~ea wa .~.'~:: T'.:: __.32_ ii J-.. ~-.~Z:F i3 '_- T.3 1v.. ~. ~otai: $4,Er35,375 ~1~- Strategyfar Deve[aping the C1T ~1P Apri127, 2010 J~~SII,~S TQtai: $~3,6i 3,79 -24- COMMUNICATIONS AND INFORMATION TECHNOLOGY CAPITAL IMPROi~EMENT PROGRAM FY 2011- FY 2016 ITEM# 59850 (Continued) 3.142 Communications Infrastructure Replacement - Ph II .3.616 Communications Infrastructure Replacement - Ph III 3.151 COPS Law Enforcement Technology Grant 3.095 Police-Integrated Public Safety RMS 3.143 Urban Area Security Initiative Ph II .TOTAL 2,742,000 26,330,541 29,072,541 0 5,440,682. 5,440,682 800,000 0 800,000 0 7,602,193 7,602,193 4,000,000 0 4,000,000 7,542,000 39,373,416 46,915,416 3.091 Planning-Addressing 220,000 0 220,000 System Integration 3.093 Planning-Business 0 296,152 296,152 System Integration.. Implementation TOTAL 220,OD0 296,152 516,152 Family and Youth Opportunities cPg.~-1) Apri127, 2010 Quality Phys~Cal EnVirOnment (Pg.4-233) 3.349 Human Services IT 340,500 0 340,500 Systems Integration TOTAL 340,500 0 340,500 Safe Community cPg.3-18) -25- COMMUNICATIONS AND INFORMATION TECHNOLOGY CAPITAL IMPROVEMENT PROGRAM FY 2011- FY 2016 ITEM # 59850 (Continued) Highlighted CIT Projects • 3-142 Communications Infrastructure Replacement Ph II • 3-602 Oracle Applications Release 12'Upglade - Keeps Oracle modules (financials, HR, Payroll, Benefits) at supported version and viable for the continued delivery of service • 3-615 Business Revenue /Personal Property RACS Implementation - Replaces mainframe legacy systems • 3-613 -Analysis of Retirement of Mainframe Applications - Define alternative solutions for remaining historical data and legacy applications on the mainframe Quality ()rgarl~Zc"~t~01'1 (Pg.8-2) 3.613 Analysts of Retirement of Malnframe Applications 3.615 Business Revenue/ Personal Property RACS Implementation 3.119 Cable Access Infrastructure Replacement Ph I 3.617 Cable Access infrastructure Replacement Ph 11 3.068 IT Network Infrastructure Replacement Ph IY 3.602 Oracle Applications Release 12 Upgrade 3.207 Phase II Permits and Inspections Interactive Internet 3.334 Telecommunications Replacement 3.138 Urban Area Strategic Initiative (UASI) 3.052 IT Service Continuity TOTAL 0 128,226 128,226 O 952,000 952,000 1,218,930 1,252,000 2,470,930 O 626,000 626,000 564,803 207;000 771, 803 2,480,355 0 2,480,355 1,927,984 0 1,927,984 2,160,000 325,000 2,485,000 ..3,213,780 0 3,213,780 2,687,755 513,998 3,201,753 14,253,607 4,004,224 18,257,831 April 27, 2010 Quality Organization (cont.) -26- COMMUNICATIONS AND INFORMATION TECHNOLOGY CAPITAL IMPROVEMENT PROGRAM FY 2011- FY 2016 ITEM # 59850 (Continued) New Projects -Requested But Not Funded Data Storage and Management for Evidentiary Audio, Video forage capacity and data management capabilities for Police audio, 3.607 and Photo ra h Files $392,640 ideo and hoto a h files PW -Real Estate Management Database 3.611 and Re ortin S em .$189,480 _ Mi rate existin RE Management database to a su orted environment PW -Waste Management nalysis for development of an integrated system to support the work 3.609 5 em Anal is $128,226-_ rocesses and business o erations of PW Waste mans e ment. Electronic Development _ Provide capabfl'rty to accept/review/comment/store iiigitally submitted 3.604 Plan Online Review S em $737,280.- develo meet laps. and canvertthem to GIS format... nalysis and pilot of location based services for non-public safety 3.605 Location Based Services $781,240 a encies Ilgn work week with payroll frequenty by corwerting to a'bi-weekly. 3.601 81-Weekf Pa roll $1,157,360= roll PW -Banner Stormwater• Develop automated approach to updating property ownership in the 3.612 Billie Anal is $78,764 Banner billin em as it relatesYo Storm.Water accounts PW -Building Maintenance -Hansen Convert historical work order data to Hansen system and add addftional 3.610 Buildin Module .$336,524.. licenses Implement technology needed to store, manage and retrieve growing 3.606 S atial Ima a Server $235 960 olume of eo ra hicai referenced di Rat ima es. Develop a database to support change orders, formal notifications, payments, etc. related to architectural/engineering contracts and 3:608 PW-Contracts Database '$87,160 - construction nalysis and implementation of business: intelligence Oracle module to 3.600 Business IMelli ence $2,125,200 u ort erformance measurement and strategic decision-making. FY11-FY16 Programmed Projects ®®®~®~ Mainframe Retirement 128,226 Analysis Business Revenue/ Personal 952,000 Property System IT ServiceContlnuity 513,998 IT Network Infrastructure 207,000 Replacement Planning-Business System 296,152 Integration Police Integrated Public Safety 2,734,786 4,867,407 System Cable Access Infrastructure 313,000 313,000 313,000 313,000 313,000 313,000 Replacement Communications Infrastructure 1,900,000 2,500,000 18,669,000 3,261,541 2,720,341 2,720,341 Replacement Ph II & III Telecommunications 325,000 Replacement Apri127, 2010 -a~- COMMUNICATIONS AND INFORMATION TECHNOLOGY CAPITAL IMPROVEMENT PROGRAM FY 2011- FY 2016 ITEM # 59850 (Continued) Communications and Information Technology Capital Improvement Program FYll-16 Proposed CIP $20 N C _= $15 $10 $5 $0 FY15 FY16 Summary Communications ^ Information Technology • The City of Virginia Beach is a service organization. - Technology systems and information/data are fundamental enablers for the delivery of nearly all City services • We tend to take for granted the effectiveness and reliability of the systems that we operate today and the data as well as information that are at our disposal to conduct business • In the absence of a consistent Funding Plan for Technology Investment, it is extremely difficult to tactically or strategically plan and execute sustainment and modernization of City systems • The current level of capital investment in Information Technology places a growing strain on the service capabilities and operations of the City April27, 2010 FY11 FY12 FY13 FY14 -28- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITY ORGANIZATION ITEM # 59851 4: 40 P. M. Catheryn Whitesell, Director -Management Services, advised Quality Organization encompasses 5.7% of the Total Operating Budget. ,.~-.,,, ,~~, ~ a.-;,:~.~ r"O~` , 4 7 <~..:~ ~~ Quality Organization ~~. ``-` ' ~ FY 2009 FY 2009-30 FY 2010-11 % Quality Organization Actual Adjusted Proposed Change Budgeted Expenditures* $ 83,201,763 $ 85,892,095 $ 83,875,479 -2.35% FTEs* 474.45 477.51 445.48 -6.71% "Excludes the City Treasurer and Commissioner of the Revenue • Business Area includes City Attorney, City Auditor, City Clerk, City Manager, City Real Estate Assessor, City Uailt Or anization Q Y g Treasurer*, Commissioner of the Revenue*, 5.7% of Communications and Information Technology, Finance, Total General Registrar, Human Resources, Management Operating Services, Municipal Council and Non-Departmental Budget Departments • City Council Goals: - Create a financially sustainable City providing excellent services • Fee/Taxlncreases: - Real Estate Tax from 89< to 92C per $100 of assessed value ~;,'' - Personal Property Tax from $3.70 to $3.80 per $100 of assessed value - Special Event Permit Fees - Parking Fees *The City Treasurer and the Commissioner of the Revenue will be presenting on April 2T^ with the other Constitutional Officers. `` ~TL1 & ii ~ [.1~' ~ t-~' ~~ t ,{`~,+'`` ~~~~5 ~ ° ~vF ~>1 ~,,~}.F~~;,~ Quality Organization ~~.: City Attorney 3,654,284 3,875,841 43.00 3,560,843 40.35 (314,948) City Auditor 723,099 730,451 6.00 731,364 6.00 913 City Clerk 634,629 626,129 7.00 542,324 6.00 (83,805); City Manager 3,417,339 3,069,307 26.20 2,690,963 23.00 (378,344) Office of Cultural 2,317,564 2,562,733 3.00 2,404,457 3.00 (158,276) Affairs General Registrar 1,498,690 1,264,732 12.03 1,124,916 12.03 (139,816) Management 3,642,520 4,034,514 20.00 1,448,304 15.00 (2,586,210) Services Real Estate Assessor 2,943,079 3,133,422 38.00 2,826,366 34.00 (307,056) Strategic Growth 5,789,131 6,529,086 12.00 8,527,697 15.00 1,998,611 Area Office Apri127, 2010 -29- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITY ORGANIZATION ITEM # 59851 (Continued) ~'>~~a +Ti~ y~. r~~ ~y .~ ., r~ ~; Quality Organization -~:~, :- . _ ., ~:;. .:~... _~ s City Attorney Quality Organization ^ City Auditor w City Clerk City Manager e Real Estate Assessor ^ Communications and Information Technology ^ Finance General Registrar ^ Human Resources ^ Management Services ~ Municipal Council ^ Cultural Affairs ru Strategic Growth Office ^ Other Non-Departmental 0.6% r0.5% ,,..-.., 1FIA~A@q'. G ~- ~~., Cy_L r , ~,~` j~ ~'~ Quality Organization ~~ ~..~~: :yY.• Program Reductions (Not Restored): • City Attorney: 1 paralegal, 1 Office Assistant - In total, the final City Attorney's Office budget was reduced 8.1%. • City Auditor: All programs restored - In total, the final City Auditor's Office budget increased 0.1%. • City Clerk: 1 Deputy City Clerk - In total, the final City Clerk's Office budget was reduced 13.4%. • City Manager: 1 Executive Assistant, 1 MCG Creative Designer, MCG Coordinator reduced to Part-Time, Part-Time Clerical Staff, Military Liaison - In total, the final City Manager's Office budget was reduced 12.3%. • Office of Cultural Affairs: Reduce Arts & Humanities and Contemporary Art Center Grants - In total, the final Cultural Affair's Office budget was reduced 6.2%. • General Registrar: Reduce temporary workers and election officials - In total, the final General Registrar's budget was reduced 11.1%. Apri127, 2010 1.4% lo.~~ .. 1.1% -30- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITY ORGANIZATION ITEM # 59851 (Continued) ~y5 ~~j(~:~:`Z ~r~ ~ ~ t~7 IJ ,~~ Mz r~ '~ l z' li ti i O <~_ t ua Q Y on za r an g ~ ~ . . ~.. ~ "~ , Program Reductions (Not Restored) continued: • Management Services: 1 support staff position (supporting COG); transfer 3 positions to SGA Office and 1 to Planning; Eliminate Purchasing Division Lease and City Hall Security Contract; Leases transferred to Non-Departmental - In total, the final Management Services' budget was reduced 64.1%. • Municipal Council: Reduce City Council support - In total, the final Municipal Council budget was reduced 5.8%. • Real Estate Assessor: 4 Appraiser positions; part-time clerical position - In total, the final Real Estate Assessor's budget reduction was 9.8%. • Strategic Growth Area: No program reductions - In total, the final Strategic Growth Area Office budget increased by 30.6%. C` v ~`, jpl Quality Organization y'y+ ~'rq, b [~,~N •ti • Major reorganizations - To address the staffing need for the implementation of the Strateeic Growth Area Plans • Moved 3 staff from Management Services • Moved 10 staff from Convention and Visitor Bureau - Parking Enterprise Fund & 5 staff - Resort Programs Office S staff • Temporary assignments will be made from Planning to address transportation needs and from Public Works to meet engineering requirements - To address the City's sustainability/ereen initiatives and the recommendations of the Green Ribbon Committee • Moved 1 staff from Management Services to Planning April 27, 2010 -31- FY 2010-2011 MANAGEMENT RESOURCE PLAN QUALITY ORGANIZATION ITEM # 59851 (Continued) rl~V1Nti4,ls ,~,~, ~~ Non-Departmental Community0rganization Grants 602,254 525,662 379,257 -$146,405 Employee Special Benefits 8,526,377 5,426,296 4,648,458 $777,838 Vehicle Replacements 2,712,895 3,111,914 3,111,914 $- Revenue Reimbursements 15,997,512 15,928,947 16,411,728 $482,781 Regional Participation 2,033,150 2,072,758 1,925,213 -$153,545 Leases/Lynnhaven MaIITIF 921,148 1,800,000 3,436,830 $1,636,830 Independent Financial Services 134,144 153,878 153,878 $- Total $30,927,480 $24,025,455 $3,067,278 $1,041,823 rProvides City's portion of funding to support the Consolidated City/School Employee Benefits Office ':Maintains City commitment to provide the employer's share of health and dental for eligible retirees .Provides real estate tax relief to qualified elderly citizens .Vehicle replacements funded at FY 2010 level; $2 million less than normal funding levels and rising costs in maintenance will occur. . ~Q'~.+"t •is~~ir 1 c,.. f~ r) • ~ • r;T.~. ~~ Quality Organization w~~" Vim,, -~L" . Re>';ional Participation Community Oreanization Grants - Eastern Virginia Medical School Ongoing - Hampton Roads Economic Development Alliance _ Beach Health Clinic - Hampton Roads Planning District Commission - Foodbank of Southeastern Virginia - Hampton Roads Military and Federal Facility - Endependence Center, Inc. Alliance Incentive - Eliminated funding in FYli and support staff position (in Management Services) Non-Departmental Program Reductions: - COG Incentive Grant Funding ($146,405) - Tuition Reimbursement and Employee Service Awards ($233,838) - Regional Participation ($112,459) In total, the final Non-Departmental budget increased 3.5%. April27, 2010 -32- CITYMANAGER `SBRIEFING INTERIM FINANCL4L STATEMENT Deferred to a future City Council Session. April 27, 2010 -33- CITY MA NAGER `S BRIEFING GASB 45 VALUATION ITEM # 59852 4: SS P.M. Susan Walston, Deputy City Manager; Ken Jeffries -with Mercer; and Lyndon S. Remus, CPA, CIA, City Auditor, distributed information re the City of Virginia Beach and Virginia Beach City Public Schools 2010 GASB Valuation. Prior valuation results 2008 vs. preliminary 2006 Mercer performed a preliminary GASB valuation in 2006 to estimate the financial impact of the City of Virginia Beach and Virginia Beach City Public Schools "retiree medical liability" Accrued Liability $332.2-Million Annual Required Contribution $ 39.8-Million Unfunded basis In 2007, Retiree medical plan strategies were aimed at reducing the accrued liability for 2008 Plan changes -lowered medical utilization and claims costs Retiree premium cost -increased premiums and applied a "true cost of plan" Approach to Retirees under 25 years of service Funding -decision to fund plan; resulted in higher discount rate Administrative expenses -maintained at low and competitive level GASB valuation 2008 results: Accrued Liability = $157.0-Million Annual Required Contribution = $19.5-Million Funded basis Deposit to Trust = $8.9-MILLION Prior valuation results 2009 vs. 2008 Mercer completed a GASB valuation in 2009 Accrued Liability: 2009: $139.7-Million (vs. $157.0-Million in 2008) Decrease of $17.3-Million Funded basis Annual Required Contribution 2009: $17.7-Million (vs. $19. S-Million in 2008) Decrease of $1.8-Million Funded basis Deposit to Trust = $8. S-Million Year-over year decrease due to: Plan design change and Retiree premium cost increase Deposit of first year funding Actual plan experience was favorable when compared to estimate April27, 2010 -34- CITY MA NAGER `S BRIEFING GASB 4S VALUATION ITEM # 59852 (Continued) Current valuation results 2010 vs. 2009 Mercer recently completed the GASB valuation for 2010 Accrued Liability: 2010: $135.8-Million (vs. $139.7-Million in 2009) Decrease of $3.8-Million (2.7% decrease) Funded basis Annual required contribution 2010: $17.7-Million (vs. $17.7-Million in 2009) Minimal change Funded basis Actual change less than nroiected due to: Deposit of second year funding Favorable investment results Actual Retiree plan experience was favorable when compared to estimate Change in assumed spousal participation percentage The Components of GASB 45 Valuation are Plan Assumptions/Methodology/Census/Rates/Cost GASB 45 Background GASB 45 actuarial valuation of Retiree medical health care liability Based on 2009 experience and projected based on an actuarial methodology and set of assumptions GASB 45 valuation needs to be recognized on the City's annual financial statements for the fiscal year end City and Schools established a Trust in 2008 Purpose of Trust is to accumulate and invest assets to fund OPEB Pooled Trust with other participating Cities and School systems What is GASB 45? GASB 45 Background Standard created by the Governmental Accounting Standards Board (GASB) to provide consistent accounting and reporting standards for government entities Accounting standard requiring governments to disclose their costs and obligations for Other Post Employment Benefits OPEB Even if benefits are not vested or guaranteed or could be amended or discounted, they still must be accounted for as OPEB Financial Reporting Requirements: Recognize OPEB Expense (referred to as the Annual Required Contribution - "ARC') Report Net OPEB Obligation as liability Footnote Disclosure (plan description, funding policy and assumptions) OPEB =Compensation received, after employment terminates, in exchange for employee's current service April 27, 2010 -35- CITYMANAGER `S BRIEFING GASB 45 VALUATION ITEM # 59852 (Continued) Plan Retiree Medical plans offered: HMO, POS, PPO Eligibility for Retiree medical coverage Em to ees A e Years o Service All (exce t Police/Fire SO 10 All exce t Police/Fire SS S Police/Fire SO S Eligibility for Retiree medical coverage terminates at age 65 (Medicare eligible) Eligibility for employer annual contribution (subsidy): Contribution tied to years of service (May be combined for City/Schools): Em to ees ER Contribution Under 25 ears o service 0 25 ears o service or more $5,400/retiree S ears o service or more $5,400/retiree *Note: City employees only; applicable to those with S years of service or more with a job related disability. Assumptions and Methodology Background Valuation based on the benefit plan and rate schedule for 2010 Cost calculations use the projected unit credit method Long term interest rate: 7.5% used to discount to present value City and Schools use a Trust from which to fund Retiree plan Complete list of the assumptions is detailed in our valuation report as of January 201 D Assumptions and Methodology Change from prior valuation 40% of participating Retirees elect coverage for spouses - 80% assumed married at retirement; results in a 32% spousal election rate Health plan (medical + pharmacy) trend assumes 8.0% in 2011, decreasing to an ultimate trend of 4. S% on 2030 -Full-implementation to Mercer's trend standard,• prior year was "half-way" RP2000 projected to 2017 was used for this valuation - Actuarially acceptable and commonly used by many plans; previous used table Projected to 2006 Claims cost reflects recent experience data - 2010 Retiree member health plan claims and expense cost = $7, OSO Contribution of $8. S-Million deposited into Trust fund for FYE2009 Census data reflecting enrollment as of January 2010 Charts depicting Retiree Premium Cost Plan Year 2010 and Valuation results: current analysis FYE 6/30/10 are hereby made a part of the record. April 27, 2010 -36- CITYMANAGER `S BRIEFING GASB 45 VALUATION ITEM # 59852 Lyndon S. Remias, CPA, CL4, City Auditor, reviewed the Audit of GASB 45 Actuarial Valuation Purpose ofAudit • To determine if the valuation of the City/Schools' Governmental Accounting Standards Board Statement 45 (GASB 45) liability and the underlying assumptions are reasonable Audit Results 1. Determined the employee/Retiree census data provided to Mercer by the Consolidated Benefits Office to be materially accurate 2. Determined that the Actuarial Accrued Liability (AAL) and normal Cost Calculations presented in Mercer's valuation dated April 19, 2010 are reasonable. In addition, the resulting ARC and incremental cash amounts needed to fully fund the ARC is reasonably stated as well 3. Determined that the Actuarial Assumptions utilized in the valuation are reasonable and agree to supporting documentation 4. Recomputed the smoothing calculation made by Mercer to state the Actuarial Value of Assets (value of our contributions) and verified balances to the City's VACO/VML Pooled OPEB account when appropriate, without exception • Identified an issue related to the identification of Double Employee Subscribers resulting from the reversal of Subscriber and Spouse designations (i. e., the subscriber was identified as the spouse and the spouse as the subscriber) • The effect of this finding was a reduction to the Actuarial Accrued Liability (AAL) of $582, 657 and an increase in the Normal Cost of $28,118. Net effect to the ARC was a decrease of $8, 655. • Mercer made the necessary changes and the revised amounts are presented in the Postretirement Benefit Valuation Report, dated April 19, 2010. April 27, 2010 -37- CITY MA NAGER`S BRIEFING GASB 45 VALUATION ITEM # 59852 (Continued) Status of Prior Findings Percentage of Retiree Spouse Electing Coverage In our prior year review of the GASB 45 Actuarial Valuation, dated April 2, 2009 we noted the following.• "Mercer utilizes a general assumption concerning the expected percentage of Retiree Spouses that will elect health care coverage. The spousal participation percentage used in the actuarial valuation is 48%. The actual Retiree Spousal participation percentage for the City and Schools as of December 2008 was 24.7%. The percentage was significantly lower in the previous three years as well. " Status of Prior Findings As a result of our prior year finding, Mercer reduced the Spousal participation assumption rate from 48% in the prior year to 32% for the current valuation Dollar Impact of Change FYE 6/30/10 Valuation Valuation Amount of Percentage Assuming a 48% Assuming a 32% Reduction Spousal Spousal Partici anon Partici anon ARC $18, 600, 000 $17, 700, 000 $900, 000 S% Less: Pa Go $ 9, 800, 000 $ 9, 800, 000 $0 0% Amount to Full Fund $ 8, 800, 000 $ 7, 900, 000 $900, 000 10% Virginia Pooled OPED Trusl Fund Comparison of VACO/VML OPEB Trust Date Cost Market Variance %Market to Value 02/28/09 $ 8, 894, 449 $ 6, 648, 986 ($2, 245, 463) -25.2% 03/31/10 $17,328,448 $19,061,851 $1,733,403 10% The unrealized loss of $2.-Million, reported in last year's review, has been fully recovered and the market value of the Trust assets as of March 31, 2010 was $19, 061, 851. April27, 2010 -38- CITY MA NAGER`S BRIEFING GASB 45 EVAL UATION ITEM # 59852 (Continued) As with the Spousal assumption, we recommend the City/Schools Benefits Executive Committee continue to work with the Actuary to monitor and evaluate the City's actual data against the general and/or VRS Actuarial Assumptions. If warranted, the Actuarial Assumptions utilized in future valuations should be adjusted accordingly. The valuation of the City/Schools' GASB 45 liability and the underlying assumptions are reasonable as presented in the revised version of the valuation dated Apri119, 2010 April27, 2010 -39- A GENDA REVIEW SESSION 5:14 P.M. ITEM # 59853 Vice Mayor Jones and Councilman Wood distributed a Resolution as a requested ADD-ON to the Consent Agenda: Resolution to EXPAND membership of the Bayfront Advisory Committee ADDING Commander, Joint Expeditionary Base Little Creek-Fort Story. ITEM # 59854 BY CONSENSUS, the following items shall compose the CONSENT AGENDA: I. ORDINANCES/RESOLUTIONS 1. Ordinances to AMEND the City Code: a. X23-SO re penalty for failure to comply with cutting excessive growth of weeds or grass b. X23-50.1 re penalty for failure to comply in the removal of certain trees c. ~2-224.9 re officers of the Minority Business Council d. ,¢2-450 re increasing the membership of Human Rights Commission 2. Resolution to AMEND an approved Plan of Financing with the City of Virginia Beach Development Authority to increase Refunding up to $150-Million 3. Resolution to AUTHORIZE the issuance of a General Obligation School Bond, Series 2010, not to exceed $4,879,954 to be sold to the Virginia Public School Authority (VPSA) and issue as qualified School construction bonds 4. Ordinance to DECLARE City-owned property excess and AUTHORIZE the City Manager to convey same to Tidewater Community College re construction of a joint use library S. Ordinance to AUTHORIZE the City Manager to execute a Lease, not in excess of five (5) years, with Contemporary Art Center of Virginia at 2200 Parks Avenue 6. Ordinance to AUTHORIZE acquisition ofright-of--way property in fee simple, by purchase or condemnation, including temporary and permanent easements for safety improvements at the intersection of Bonney Road and South Kentucky Avenue and AUTHORIZE the City Manager to make a reasonable offer to owners or persons having interest in said property 7. Ordinance to A UTHORIZE the City Manager to execute a Cost Participation Agreement with Hollis Road Associates, L.L.C. re construction of stormwater improvements for Indian River Road Phase VII and the Rose Glen Manor Subdivision Apri127, 2010 -40- A GENDA REVIEW SESSION ITEM # 59854 (Continued) 8. Ordinances to AUTHORIZE acquisition of Agricultural Land Preservation (ARP) easements: a. Richard C. Cocke and Carol A. Clarke in the amount of $449,106 at 416 Princess Anne Road b. Truman D. Baxter, Jr. in the amount of $288,344 at 3457 Land of Promise Road Walter J., Jr. and Jennifer S. Roe in the amount of $238, 428 at 5125 Morris Neck Road 9. Ordinance to AUTHORIZE a temporary encroachment into a portion of City- owned property for Wolfgang J. and Terri J. Bay to construct and maintain a bulkhead at 2404 Windward Shore Drive 10. Ordinances to EXEMPT certain organizations from Personal Property Taxes: a. The Organization Against Injustice and Social Malpractice (TOAISM) b. Life in Christ Ministries, Inc. c. Hampton Roads Community Care, Inc. d. Chesapeake Bay Wine Classic Foundation 11. Ordinance to APPROPRIATE $~89; 889 $330, 000 from the U. S. Department of Homeland Security re USAllnteroperable Communications Technology Grant in the FY 2009-10 Capital Budget 12. Ordinance to TRANSFER $200, 000 from the General Fund Reserve for Contingencies to the Department of Housing and Neighborhood Preservation FY 2009-10 Operating Budget re demolishing a structure that presents an imminent public safety hazard Item J.l.a. (Ordinance to AMEND the City Code re failure to comply with cutting excessive growth of weeds or grass) shall be DEFERRED to June 8, 2010, BY CONSENT. Item J.Ib (Ordinance to AMEND the City Code re failure to comply in the removal of certain trees) shall be DEFERRED to June 8, 2010, BY CONSENT. Items J.8 Councilman DeSteph shall ABSTAIN on Items J8a/b/c Ordinances to AUTHORIZE acquisition of Agricultural Land Preservation (ARP) easements: a. Richard C. Cocke and Carol A. Clarke in the amount of $449,106 at 416 Princess Anne Road b. Truman D. Baxter, Jr, in the amount of $288, 344 at 3457 Land of Promise Road c. Walter J., Jr. and Jennifer S. Roe in the amount of $238, 428 at 5125 Morris Neck Road April 27, 2010 -41- A GENDA REVIEW SESSION ITEM # 59859 (Continued) Item J.l0a. (Ordinance to EXEMPT certain organizations from Personal Property Taxes: The Organization Against Injustice and Social Malpractice (TOAISM) shall be DEFERRED to May 11, 2010, BY CONSENT. Item J. lOd. Councilman DeSteph shall ABSTAIN re Ordinance to EXEMPT certain organizations from Personal Property Taxes: The Chesapeake Bay Wine Classic Foundation. He is a member of the Board of Directors April 27, 2010 -42- A GENDA REVIEW SESSION ITEM # 59855 BY CONSENSUS, the following items shall compose the CONSENT AGENDA: J. PLANNING Application of LIVING FAITH CHRISTL4N FELLOWSHIP/MARSH WOOD PROPERTIES, LLCfor a Conditional Use Permit re a religious use at 5257 Challedon Drive DISTRICT 2 - KEMPSVILLE 2. Application of BAYLAKE UNITED METHODIST CHURCH for a Conditional Use Permit re adding a lot to be used as open space to the existing church site at 4309 Blackbeard Road DISTRICT 4 -BAYSIDE 3. Application of JEFFREYD. BLAKE (OPENAIR JEEPS, LLC) for a Conditional Use Permit re an auto repair garage at 800 Seahawk Circle, Suites 128 & 129 DISTRICT 6 -BEACH 4. Application of KUBER HOSPITALITY CORP. for a Change of Zoning District Classification from H-1 Hotel District to Conditional B-2 Community Business District and Conditional H-1 Hotel District re a retail center at 1808 Diamond Springs Road DISTICT 4 -BAYSIDE S. Application of LAKE GEMD8, L.L.C. for Modification' Conditions 2, 5 and an additional condition (approved by City Council on May 13, 2009) to allow operation of the Outdoor `Green' Market the weekend prior to Thanksgiving and Christmas holidays in addition to the days previously approved, allow homemade items as well as handmade items and request a manned table with literature advertising the Red Mill Marketplace Shops at 2181 Upton Drive DISTRICT 7 -PRINCESS ANNE Item J.2. (BAYLAKE UNITED METHODIST CHURCH re a Conditional Use Permit) shall be DEFERRED INDEFINITELY, BY CONSENT) April 27, 2010 - 43 - ITEM # 59856 Mayor William D. Sessoms, Jr., entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended, for the following purpose: PUBLICLY-HELD PROPERTY: Discussion or consideration of the, acquisition, or of the disposition of publicly-held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(3). Acquisition/Disposition of City Property: Rose Hall District LEGAL MATTERS: Consultation with legal counsel employed or retained by a public body regarding speciftc legal matters requiring the provision of legal advice by such counsel pursuant to Section 2.2-3711 (A) (7). Seven Cities Norfolk Southern Upon motion by Councilman Uhrin, seconded by Councilman Dyer, City Council voted to proceed into CLOSED SESSION at 5:20 P.M. Voting: 11-0 Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None (Closed Session: 5:20 P.M. - 5:40 P.M.) (Dinner: 5:40 P.M. - S: 58 P.M.) Apri127, 2010 -44- FORMAL SESSION VIRGINL4 BEACH CITY COUNCIL April 27, 2010 6:00 P.M. Mayor William D. Sessoms, Jr. called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the Council Chamber, City Hall Building, on Tuesday, April 27, 2010, at 6:00 P.M. Council Members Present: Rita Sweet Bellitto, Glenn R. E Harry E. Diezel, Robert M. Dyer, Louis R. Jones, Mayor William rvis, William R. "Bill " DeSteph Barbara M. Henley, Vice Mayor D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood. Council Members Absent: None INVOCATION: Reverend Malcolm Puckett Avalon Church of Christ PLEDGE OFALLEGIANCE TO THE FLAG OF THE UNITED STATES OFAMERICA Mayor Sessoms DISCLOSED as an officer of TowneBank (which has a corporate office located at 297 Constitution Drive in Virginia Beach), he is directly and indirectly involved in many of TowneBank's transactions. However, due to the size of TowneBank and the volume of transactions it handles, TowneBank has an interest in numerous matters in which he is not personally involved and of which he does not have personal knowledge. In that regard, he is always concerned about the appearance of impropriety that might arise if he unknowingly participates in a matter before City Council in which TowneBank has an interest. Mayor Sessoms also has similar concerns with respect to Prudential Towne Realty, which is an affiliate of TowneBank. In order to ensure his compliance with both the letter and spirit of the State and Local Government Conflict of Interests Act (the "Act'), it is his practice to thoroughly review each City Council agenda to ident~ any matters in which he might have an actual or potential conflict. If, during his review of an agenda, he identifies a matter in which he has a `personal interest ", as defined by the Act, he will either abstain from voting, or file the appropriate disclosure letter with the City Clerk to be included in the official records of City Council. Mayor Sessoms' letter of March 24, 2009, is hereby made a part of the record. April27, 2010 - 45 - Vice Mayor Jones DISCLOSED, for many years, he served on the Board of Directors of Resource Bank. Three (3) years ago, Fulton Financial Corporation ("Fulton Financial ") purchased Resource Bank. On March 31, 2007, Vice Mayor Jones retired from the Board of Directors. Although, he is no longer a Board Member, he owns stock in Fulton Financial and that stock ownership causes him to have a `personal interest" in Fulton Financial. However, due to the size of Fulton Financial and the volume of transactions it handles in any given year, Fulton Financial, or any of the banks that are owned by Fulton Financial, may have an interest in numerous matters in which Vice Mayor Jones has no personal knowledge. In order to ensure his compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is his practice to thoroughly review the agenda for each meeting of City Council for the purpose of ident~ing any matters in which he might have an actual or potential conflict. If, during his review, he identifies any matters, Vice Mayor Jones will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Vice Mayor Jones regularly makes this disclosure. Vice Mayor Jones' letter of April 10, 2007, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED her husband is a principal in the accounting firm of Goodman and Company and is directly and indirectly involved in many of Goodman and Company's transactions. However, due to the size of Goodman and Company and the volume of transactions it handles in any given year, Goodman and Company has an interest in numerous matters in which her husband is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of ident~ing any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson's letter of January 27, 2004, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED she is a Real Estate Agent affiliated with Prudential Decker Realty. Because of the nature of Real Estate Agent affiliation, the size of Prudential, and the volume of transactions it handles in any given year, Prudential has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of ident~ing any matters in which she might have an actual or potential conflict. If, during her review she identifies any matters, she will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson's letter of January 27, 2004, is hereby made a part of the record. April 27, 2010 -46- RECOGNITION OF BOY SCOUTS ITEM # 59857 Mayor Sessoms RECOGNIZED THE FOLLOWING Boy Scouts and their leaders: Boy Scout Troop 12 Sponsored by Providence Presbyterian Church Carson Bieker Logan Bieker Collin Brunelle Will Dyer Sean Burgess Rhys Draughon Jeffrey Ferguson Ryan McBride Eric Minter Xavier Moore Ale'xon Munson SeBastian Munson Kevin Rapp Nathan Shapard Matthew Talley Mayor Sessoms presented each Scout with a City Seal Pin. These young men are working on their Citizenship of the Community Merit Badge. April27, 2010 -47- Item - V-E.1 CERTIFICATION ITEM # 59858 Upon motion by Councilman Dyer, seconded by Councilman DeSteph, City Council CERTIFIED THE CLOSED SESSION TO BE INACCORDANCE WITH THE MOTION TO RECESS. Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certifrcation resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 11-0 Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None April27, 2010 RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM #59856, Page 43, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach Ciry Council. th Hodges Fraser, MMC City Clerk April 27, 2010 -48- Item V-F.1 ITEM # 59859 Upon motion by Council Lady Wilson, seconded by Councilman Dyer, City Council APPROVED the MINUTES of the SPECIAL INFORMAL and FORMAL SESSIONS of March 30, 2010. Voting: 11-0 Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay.• None Council Members Absent.• None April27, 2010 -49- Item V-F.1 ITEM # 59860 Upon motion by Council Lady Wilson, seconded by Councilman Dyer, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSIONS of Apri113, 2010. Voting: 10-0 Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Abstaining: William R. "Bill " DeSteph, Council Members Absent: None April27, 2010 -50- Item V-G.1. ADOPT AGENDA FOR FORMAL SESSION ITEM # 59861 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION ADDED: Resolution to EXPAND membership of Bayfront Advisory Committee ADDING Commander, Joint Expeditionary Base Little Creek-Fort Story April27, 2010 -51- Item V-I.1. PUBLIC HEARING ITEM # 59862 Mayor Sessoms DECLARED A PUBLIC HEARING: FY 2010-2011 RESOURCE MANAGEMENT PLAN FY 2010-2011 Operating Budget $1, 687,819, 685 FY2010-2011 Capital Budget $ 170,517,479 The following registered to speak: Marilyn Danner, 2601 West Landing Road, spoke relative pride in her City for having won the award for the very best and safest City of our size in the entire United States. Virginia Beach is also famous for its Volunteers. Taxes decreased last year, this year and next year. 88% of the residents who own homes in Virginia Beach will have a much lower tax rate. Ms. Danner spoke re public safety and a position in jeopardy. There are over 900 Volunteers who contribute at least 48 hours per month for the Emergency Medical Services (EMS). The CERT program is recognized throughout the United States. Ms. Danner requested City Council increase the tax by one (1) cent, which will provide $S-MILLLION more for City services. Mona Saferstein, 248 Virginia Dare Drive, Phone: 422-0401, is concerned re a $60-Million building in Town Center. This benefits very few citizens. Ms. Saferstein has lived in the same home for fifteen (1 S) years and her street has never been paved. The "City of a lifetime "should have academic services of which to be proud. Ms. Saferstein expressed concern re cutting Library hours. Students do not have the opportunity to do research at a Library on Sunday. Robert C. Goodman, Jr. 8506 Ocean Front Avenue, Phone: 624-3237, Past President - Virginia Beach Visions, currently Chair, Virginia Beach Visions City Budget Task Force and Past Co-Chair -Blue Ribbon Task Force. In 1994, the City purchased 1193 acres at Lake Ridge for $9.5-Million. Today this property is the location of the Virginia Beach Amphitheatre, Sportsplex, TPC Golf Course, Public Schools, Princess Anne Commons and more. It is worth seventy (70) times the City's purchase price. This was a wonderful vision under the direction of the City Manager, James Spore, and City Council. Tommie Cubine, 2417 Ketch Court, Phone: 481-6964, semi-retired mental health professional and also a member of the Board of Directors - NAMI Virginia, National Alliance on Mental Illness, and Secretary of the Faith Based Committee -Virginia Beach Crises Intervention Team. Ms. Cubine is well aware of the d~erence quality treatment makes in outcomes. Ms. Cubine expressed appreciation to the City for their support of Human Services Programs in the past. Ms. Cubine requested "no cuts " in the Budget for Mental HealthlSubstance Abuse Services. These programs recently had three (3) cuts by the State. Leigh Penner, 1624 Dey Cove Drive, Phone: 376-2386, Volunteer -Virginia Beach Animal Control. Her group requests funds in the 2011 Budget for a new Animal Shelter with construction to begin immediately. The existing Animal Control facility was built in the 1970's and is now in deplorable condition. The structure is thirty-five (35) years old and deteriorating beyond repair. B. A. Andrews, 820 Goldsboro Avenue, Phone: 971-8625, spoke in support of CERT and Cookie Ketcham, Director and Coordinator, Mr. Andrews shared his telephone bill and the item marked "Toll Restriction ". Mr. Andrews cancelled his long distance service. Mr. Andrews suggested one dollar be added to everyone 's bill for support of CERT under the E911 Tax, April27, 2010 -52- Item V-L 1. PUBLIC HEARING ITEM # 59862 (Continued) Steve Fesko, 533 Windsor Gate Circle, Phone: 463-5861, requested reinstatement of CERT funds and spoke in support of Cookie Ketcham, Director and Coordinator, Stewart Prost, 736 West Princess Anne Road, Unit 1 (757), 572-6891, President -Tidewater Chapter of The National Federation of the Blind and Secretary -National Federation of the Blind -Virginia. Mr. Prost spoke in favor of continuing Special Services at the Bayside Library (talking book program since 1972) George Bryant, 2320 Dodd Drive, Phone: 481-3309, resident of Wolfsnare Plantation for 42 years. His assessment has dropped 20% from its high two years ago, many citizens are still suffering from the artificial "run up " in property prices. The City now needs to deal with essentials. Mr. Bryant urged the spending continue to be reduced and taxes and fees lowered. Jill Browne, 5300 A Lakeside Avenue, Phone: 672-8243, Member -Friends of the Virginia Beach Mounted Patrol. Ms. Browne spoke re the financial effects in a reduction of the Mounted Police which would result in less security. Cynthia Pridmor, 1140 Kings Way Drive, Phone: 464-5541, Director for Soil and Water Conservation for over 10 years. Funding from Virginia Beach has been remarkably constant at $8, 000 and she requested this funding be continued. Mendi Koch, 2532 Buyrn Circle, Phone: 216-9120, Volunteer -Virginia Beach Police Department (Law Enforcement Explorer) requested relocation of the Crime Prevention Officers. John W. Wilson, Jr., 444 Goodspeed Road, Phone: 491-8953, Chair -Hampton Roads Chamber of Commerce/Virginia Beach Division. Several members of the Board of Directors have met with City Manager Spore and Senior Staff to discuss this budget and review. The biggest challenge to the Budget is the decline in real estate values by 6-%% this year. The Chamber is an active member of the Virginia Beach Roundtable, a coalition of various business organizations. Mr. Wilson reminded City Council of the five (5) strategic priorities brought forth last year and requested the Council continue to focus: create a Task Force on Transportation; support the high speed rail linkfrom Richmond to the Hampton Roads area; extend the light rail from Newtown Road to the Oceanfront; commence doing something locally with legislation, which will allow the opportunity to transition the City Employees from a Defined Benefit plan to a Defined Contribution plan, and support the Resort development initiatives -complete the work at the Dome site, 31"Street/Laskin Road Gateway and convention hotel headquarters. Diane N. Jones, 721 Woodstock Road, Phone: 420-7876, Member -Community Services Board, parent of an adult daughter with a mental disability. Ms. Jones requested restoration of funding for two (2) programs: individuals with intellectual disability, community employment option and PALS program. Diana Ruckelman, 533 Heather Drive, Phone: 497-0330, Chair -Community Services Board, a budget reduction of over $1-Million has been submitted. However, funds are requested to be restored in program areas, creating significant hardships; restoration of contract staffing and correctional services (provides mental health and substance abuse education programs to inmates in jail and outpatients referred by probation and parole). April27, 2010 -53- Item V-I.1. PUBLIC HEARING ITEM # 59862 (Continued) Jill Blake, 1041 Red Mill Boulevard, Phone: 689-2760, spoke re the proposed reduction in services at the Public Library. 40% of her students have no computer access at home and rely on the technology at the Public Library. Chris Topping, 5416 Birnam Landing, Phone: 523-7405, represented CERT who provided 36, 000 hours of service to the City in just one year. Mr. Topping requested reinstatement of CERT funds and spoke in support of Cookie Ketcham, Director and Coordinator, Lisbeth Dula, Endependence Center, 6300 East Virginia Beach Boulevard, Phone: 351-1573, spoke in SUPPORT of the Center, which is a non profit organization and works with individuals with disabilities and their families in South Hampton Roads. The Center also provides workshops on Independent Living Skills and "rights under the laws ". This year, the Endependence Center has provided Independent Living to over 1, 000 Virginia Beach residents with disabilities and their families (including assisting two (2) of them to move out of the nursing home and into active living in their community. Steve Lurus, 208 A 67`" Street, Phone: 635-7SS8, Chair -Open Space Advisory Committee, advised examples of property acquired: Providence Park -community recreation in lieu of retail shopping center; Stumpy Lake -golf course and eco-tourism destination, as part of the National Binding Trail and stormwater management ; and, Adam Thoroughgood property. Mr. Lurus expressed concern re suspending new funding for Open Space acquisition over the next two years. Mr. Lurus encouraged City Council to keep in place the existing fund balance to provide for future acquisitions. Preston Rieks, 5518 Professor Court, Phone: 499-9805, 8-year employee with City in Waste Department Division, having a combination of twenty-two years in the Waste industry. Mr. Rieks is proud of his division, works hard and is proud to do. Waste Management employees are there when circumstance command their assistance, such as hurricanes, floods, etcetera. Samuel Brown, 3005 Pinewood Drive, 9-year employee with Waste Management. Their crew provides service to over 30, 000 homes a day. Their service is essential to the City. Reverend William Dyson -Human Rights Commission, spoke relative the need for afull-time staff individual to assist their Council-appointed commission. Sally Griffith, 1140 Kings Way Drive, Phone: 348-1993, Acting Chair -Virginia Dare Soil and Water Conservation. Virginia Dare is charged under the Code to administer the Agricultural Best Management practices cost share program within the City. Over $227, 000 has been utilized in cost share funds for over 1 S, 000 acres of cropland. These practices are scientifically proven to reduce erosion and improve the water quality. Over 800 students, first grade and second grade, came to Farm Days last Fall at no cost to the City. Patrick Shuler, Member -Virginia Beach Vision, applauded City Council services. Mr. Shuler debated whether as a City enough spending cuts have been made that thoroughly evaluate all savings through operational costs. Howard Carr, 1160 Eagle Way, Phone: 233-8117, retired City employee, expressed concern re Public Safety cuts. This is a core responsibility of Government. Mr. Carr requested the City Council focus on the people. April 27, 2010 -54- Item V-I.1. PUBLIC HEARING ITEM # 59862 (Continued) Kathleen Ashby, President -Virginia Beach Aff liate of National Alliance for Mental Illness and the parent of a young adult recovering from mental illness. Virginia Beach's Safety Net is composed of the Police, Fire Department and Mental Health Services. If the Mental Health part of the Safety Net is cut, there will be an increase in costs in other areas, whether police, hospitals or jails. A case manager introduced their daughter to Beach House. This adult psycho social treatment program provided that safe haven. David M. Williams, 2104 West Admiral Drive, Phone: 481-1668, Vice President -Shore Drive Community Coalition and former CERT member. Mr. Williams wishes an effective CERT team; however, if not in the plan at this time, a firefighter position is needed. Will Merritt, 1412 Rutland Drive, High School Junior, spoke re VBCERT (Virginia Beach Community Response Team). Mr. Merritt participated in this course with his dad earlier this year. This is a fantastic resource to the City and its citizens. Mr. Merritt requested reinstatement of CERT funds and their dedicated Coordinator. Local organizations such as TownBank have requested all employees complete the program. Robert A. Zogg, 2212 Shore Drive, Phone: 412-2654, retired 30 year Professional Firefighter from another area and member of CERT. The VBCERT leadership position can be handled on a part-time basis and be as effective. Mr. Zogg urged the saving of Fire and Police positions. Lee Kimble, 1613 Milldale Court, Phone: 574-4941, City Volunteer since 1996 and with VBCERT since its inception. Apart- time Fire Fighter is not the answer. Debbie Hearst Gregory, 5584 Arboretum One, Phone: 270-0965, requested reinstatement of CERT funds and spoke in support of Cookie Ketcham, Director and Coordinator. Ms. Gregory read letters from parents in support of the Fire Safety Education program. Cookie Ketcham, 3752 Colonial Parkway, Phone: 831-2559, spoke re VBCERT as Director and Coordinator. Ms. Ketcham advised VBCERT is about the 700 Volunteers who comprise this organization. It is not an easy job to manage 700 Volunteers. This is a force that can be utilized by the City and need coordination. Keith Arnold, 1704 Eastborne Drive, Phone: 721-2543, Supervisor -Fire and Life Safety Education Program. Because of this program, Virginia Beach is well below national averages (57%) in fire related deaths. This year, 22, 000 school children have been given this program. One of the instructors for National Child Safety Passenger Safety will be cut from the budget. Ivy Kennedy, 4956 Willow Point Lane, Phone: 495-4783, spoke on behalf of the Endependence Center Vincent Morallo, 44 year old resident, spoke on behalf of the Endependence Center. Mr. Morallo was born in Portsmouth, Virginia, and from the age of nine years resided at St. Mary's Infant Home in Norfolk, Virginia. Mr. Morallo completed High School at Great Bridge in Chesapeake. All his life, he has resided with others. He commenced going to the Endependence Center about a year ago and was assigned a Counselor. This month he has moved into his own apartment in Virginia Beach and started his first job at McDonalds. April 27, 2010 -55- Item V-I.1. PUBLIC HEARING ITEM # 59862 (Continued) Frances Durham, Phone: 619-9939, employee of the Endependence Center, Member -Hampton Roads Blind Lions Club and Chesapeake Bay National Federation of the Blind. Ms. Durham expressed support for the Library Special Services at Bayside and requested funding be continued. She would lose these services as she resides in Norfolk. Mary Mathena, Chairman -Special Services Library Advisory Board at Bayside, represented the Chesapeake Bay Chapter of the National Federation of the Blind, the Seeing Beyond group which meets at the Bayside Library and the Hampton Roads Blind Lions Club. Ms. Mathena requested the Special Services at Bayside and funding be continued. Richard L. Yount, 3407 Norfeld Court, Phone: 368-0505, represented Atlantic Coast Cab Company and spoke relative rates for permits and Certificates of Public Convenience and Necessity. An increase is overdue. However, a reasonable charge would be $50.00 for two (2) years. The cab companies should be able to take on some of the burden for the cost of Certificates of Public Convenience and Necessity. Every year, the taxi cab has to go through a meter run and inspection prior to receiving the Certificate. Emily Lowry, Volunteer with Fire Department Life Safety education for eight (8) years. This is very important to young children her age. Vivian E. Blaize, represented and supported the Human Rights Commission, requesting a staff position for Human Rights Commission. Stephen Wynne, 4617 Bunker Hill Lane, Phone: 493-9177, Member -VBCERT, requested reinstatement of CERT funds and spoke in support of Cookie Ketcham, Director and Coordinator. Mr. Wynne was accompanied by his son, Chris. Vanessa R. Carter, 5338 Turtle Creek Court, Phone: 376-9796, Member -VBCERT, requested reinstatement of CERT funds and spoke in support of Cookie Ketcham, Director and Coordinator. Al Wallace, 4601 Chippendale Court, Phone: 497-2187, expressed frustration with the process. More citizen involvement is needed early in the budget process. Mr. Wallace requested a Blue Ribbon Commission be established to further improvements in the process Tracy L. Mills, 737 Olivieri Lane, Phone: 328-6963, Member -VBCERT, requested reinstatement of CERT funds and spoke in support of Cookie Ketcham, Director and Coordinator Correspondence from John D. Moss, Chair -Virginia Beach Taxpayer Alliance and Ben Krause, Member -Virginia Beach Taxpayer Alliance, is hereby made a part of the record. April 27, 2010 -56- Item V-I.2a/b. PUBLIC HEARING ITEM # 59863 Mayor Sessoms DECLARED A PUBLIC HEARING: LEASE OF CITY-OWNED PROPERTY a. 225 17`" Street b. 2200 Parks Avenue There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. April 27, 2010 -57- Item V-I.3. PUBLIC HEARING ITEM # 59864 Mayor Sessoms DECLARED A PUBLIC HEARING: DEDICATION OFCITY-OWNED PROPERTY- State Board of Community Colleges 3.171 Acres at Faculty Boulevard and South Rosemont Road There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. April 27, 201 D -58- Item V-L4. a/b/c. PUBLIC HEARING ITEM # 59865 Mayor Sessoms DECLARED A PUBLIC HEARING: INSTALLMENT PURCHASE AGREEMENT Acquisition of Agricultural Land Preservation (ARP) Easements a. 416 Princess Anne Road b. 3457 Land of Promise Road c. 5125 Morris Neck Road There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. April27, 2010 -59- Item V-I. S. PUBLIC HEARING ITEM # 59866 Mayor Sessoms DECLARED A PUBLIC HEARING: BONNEY ROAD and SOUTH KENTUCKYAVENUE -Safety Improvements Acquisition by Agreement or Condemnation There being no speakers, Mayor Sessoms CLOSED THE PUBLICHEARING. April27, 2010 -60- Item V-L 6. PUBLIC HEARING ITEM # 59867 Mayor Sessoms DECLARED A PUBLIC HEARING: REAL and PERSONAL PROPERTY TAX EXEMPTIONS There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. April27, 2010 -61- Item I. ORDINANCES/RESOLUTIONS ITEM # 59868 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED in ONE MOTION Items 1 a (Deferred 6/8/2010), 16 (Deferred 6/8/2010), 1 c, 1 d, 2, 3, 4, S, 6, 7, 8a/b/c, 9, 10 a (Deferred 5/11/2010), b/c/d/, 11 (AS CORRECTED), 12 and 13 (ADDED) of the CONSENT AGENDA. Voting.• 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None Item J.l.a. (Ordinance to AMEND the City Code re failure to comply with cutting excessive growth of weeds or grass) shall be DEFERRED to June 8, 2010, BY CONSENT. Item J.1 b (Ordinance to AMEND the City Code re failure to comply in the removal of certain trees) shall be DEFERRED to June 8, 2010, BY CONSENT. Items J.8 Councilman DeSteph shall ABSTAIN on Items J8a/b/c Ordinances to AUTHORIZE acquisition of Agricultural Land Preservation (ARP) easements: a. Richard C. Cocke and Carol A. Clarke in the amount of $449,106 at 416 Princess Anne Road b. Truman D. Baxter, Jr. in the amount of $288,344 at 3457 Land of Promise Road c. Walter J., Jr. and Jennifer S. Roe in the amount of $238, 428 at 5125 Morris Neck Road April27, 2010 -62- Item I. ORDINANCES/RESOLUTIONS ITEM # 59868 (Continued) Item J.l0a. (Ordinance to EXEMPT certain organizations from Personal Property Taxes: The Organization Against Injustice and Social Malpractice (1'OAISM) shall be DEFERRED to May 11, 2010, BY CONSENT. Item J. IOd. Councilman DeSteph shall ABSTAIN re Ordinance to EXEMPT certain organizations from Personal Property Taxes: The Chesapeake Bay Wine Classic Foundation. He is a member of the Board of Directors Item J.11 shall be corrected.• (Ordinance to APPROPRIATE $~99~ 998 X330, 000 from the U. S. Department of Homeland Security The following Resolution shall be ADDED as Item 13 of the Consent Agenda.• Resolution to EXPAND membership of Bayfront Advisory Committee ADDING Commander, Joint Expeditionary Base Little Creek-Fort Story. April 27, 2010 - 63 - Item I.1. a/b ORDINANCES/RESOLUTIONS ITEM # 59869 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED to June 8, 2010, BY CONSENT: Ordinances to AMEND the City Code X23-SO re penalty for failure to comply with cutting excessive growth of weeds or grass X23-50.1 re penalty for failure to comply in the removal of certain trees Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None Apri127, 2010 -64- Item I.1. c/d. ORDINANCES/RESOLUTIONS ITEM# 59870 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT.• Ordinances to AMEND the City Code ~2-224.9 re officers of the Minority Business Council ,¢2-450 re increasing the membership of Human Rights Commission Voting.• 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April27, 2010 1 AN ORDINANCE TO AMEND SECTION 2- 2 224.9 OF THE CITY CODE PERTAINING TO 3 OFFICERS OF THE MINORITY BUSINESS 4 COUNCIL 5 g SECTION AMENDED: § 2-224.9 7 8 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 9 BEACH, VIRGINIA: 10 11 That Section 2-224.9 of the Code of the City of Virginia Beach, Virginia, is hereby 12 amended and reordained to read as follows: 13 14 Sec. 2-224.9. Minority business council composition; appointment and terms of 15 members, etc. 16 17 (a) The City of Virginia Beach Minority Business Council shall consist of at 18 least nine (9) but not more than eleven (11) members. 19 20 (b) The members of the minority business council shall be appointed by the 21 city council for terms of two (2) years; provided, however, that the initial terms of several 22 members may be for one year in order to allow for staggered expirations of the terms of 23 members. Of those members appointed, one member may be a member of city council. 24 25 (c) The meeting in June of each year shall be the annual organizational 26 meeting at which the minority business council shall elect, from among its members, a 27 chair and vice-chair. The chair and vice-chair shall each serve for a term of one year, or 28 until his or her respective successor has been elected. Both the chair and the vice-chair 29 may be re-elected; provided, however, that no member shall serve more than +'" 30 four 4 consecutive one-year terms in the same office. 31 32 (d) Attendance records shall be kept at each meeting of the minority business 33 council, and an annual report of attendance shall be submitted to city council through 34 the city clerk's office. No member shall accumulate an annual total of (i) more than three 35 (3) absences or (ii) absences exceeding one-fourth of the number of meetings held, 36 whichever is lesser, for reasons other than personal illness, death or other unusual 37 circumstances. If this limitation is exceeded, the chairperson shall report to the city clerk 38 the name of the minority business council member whose unexcused absences exceed 39 the number set forth herein. The city clerk shall then notify such member in writing, with 40 copies to the city council, that, due to absences in excess of the number allowed herein, 41 his or her membership is terminated. Thereafter, the city clerk shall forward the vacancy 42 to the city council for appointment of a new minority business council member to serve 43 for the remainder of such terminated member's term. 44 45 (e) Notwithstanding the provisions of subsections (b) and (d) of this section, 46 all members of the minority business council shall serve at the pleasure of city council. Adopted by the City Council of the City of Virginia Beach, Virginia, on this h day of April , 2010. APPROVED AS TO CONTENT: Finance Department APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA11498 R-1 April 13, 2010 1 AN ORDINANCE TO AMEND SECTION 2-459 OF THE CITY 2 CODE TO INCREASE THE MEMBERSHIP OF THE HUMAN 3 RIGHTS COMMISSION 4 5 SECTION AMENDED: § 2-459 6 7 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, 8 VIRGINIA: 9 10 That Section § 2-459 of the City Code is hereby amended and reordained, to read 11 as follows: 12 13 Section 2-459. Commission established; composition; appointment and terms of 14 members; etc. 15 16 (a) There is hereby created the City of Virginia Beach Human Rights 17 Commission which shall consist of °'°~~„-(~ fifteen (15) members. 18 19 (b) The members of the commission shall be appointed by the city council. Of 20 those first appointed, three (3) members shall be appointed for a term of one (1) year; four 21 (4) for a term of two (2) years; four (4) for a term of three (3) years; and thereafter all 22 appointments shall be for a term of three (3) years. The commission shall elect, from its 23 members, achairperson, avice-chairperson, and such other officers as the commission 24 may deem appropriate. 25 26 (c) Attendance records shall be kept at each meeting of the commission, and an 27 annual report of attendance shall be submitted to city council through the city clerk's office. 28 No member shall accumulate an annual total of more then three (3) absences (not to 29 exceed one-fourth of the total number of meetings) for reasons otherthan personal illness, 30 death or other unusual circumstances. If this limitation is exceeded, the chairperson shall 31 report to the city clerk the name of the commission member whose unexcused absences 32 exceed the number set forth herein. The city clerk shall then notify in writing, with copies to 33 the city council, the commission member that, due to absences in excess of the number 34 allowed herein, their term of membership on the commission terminated. Thereafter, the 35 city clerk shall forward the vacancy to the city council for appointment of a new commission 36 member. 37 38 (d) Notwithstanding the provisions of subsections (b)and (c), all members of the 39 commission shall serve at the pleasure of city council. 40 41 (e) Members of the commission shall serve without compensation, but funds may 42 be appropriated in the annual budget for reasonable and necessary expenses to be 43 incurred by the commission in the conduct of its prescribed functions. 44 1 45 Adopted by the City Council of the City of Virginia Beach, Virginia, on this 27th 46 day of April , 2010. APPROVED AS TO CONTENT: ,~ H man Resources APPROVED AS TO LEGAL SUFFICIENCY: ~~~~~ City Attorney's O i e CA11495 R-2 April 16, 2010 2 -65- Item I.2. ORDINANCES/RESOLUTIONS ITEM # 59871 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT.• Resolution to AMEND an approved Plan of Financing with the City of Virginia Beach Development Authority to increase Refunding up to $1 SO-Million Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None Apri127, 2010 RESOLUTION AMENDING AN APPROVED PLAN OF FINANCING WITH THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY WHEREAS, on March 9, 2010 the City Council of the City of Virginia Beach, Virginia (the "City") adopted a resolution (the "Prior Resolution") entitled "RESOLUTION APPROVING A PLAN OF FINANCING WITH THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, APPROVING CERTAIN DOCUMENTS PREPARED IN CONNECTION WITH SUCH FINANCING AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE SAME," which Prior Resolution approved a plan of financing with the City of Virginia Beach Development Authority (the "Authority") to finance certain new projects and to achieve debt service savings by refinancing all or portions of certain public facility revenue bonds, series 2002A, 2003A, 2005A and 2007A (the "Prior Bonds") previously issued by the Authority on behalf of the City to finance various public facilities; and WHEREAS, in the Prior Resolution, the City requested the Authority's assistance through the issuance of its public facility revenue bonds in the maximum principal amount of $17,000,000 for the new projects and its public facility refunding revenue bonds in the maximum principal amount of $85,000,000 to refinance all or a portion of the Prior Bonds; and WHEREAS, the City has subsequently determined in consultation with its financial advisor, Government Finance Associates, Inc., that favorable market conditions may permit greater debt service savings to be achieved by increasing the potential size of the Authority's refunding bonds to $150,000,000 to refinance the Prior Bonds, and the City Council desires to take advantage of such potential: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. The plan for refinancing the Prior Bonds approved in the Prior Resolution providing for the issuance of not more than $85,000,000 of the Authority's refunding revenue bonds is hereby amended to provide for the Authority to issue not more than $150,000,000 in principal amount of such bonds to refund the Prior Bonds. The City Manager and other appropriate officers of the City are directed to request the Authority approve the amendment to the financing plan for the increase in the not-to-exceed amount for such refunding bonds, and take actions as are necessary and appropriate to implement the request. 2. Except as amended herein, the Prior Resolution is ratified and confirmed. 3. This Resolution shall take effect immediately. Adopted by the City Council of the City of Virginia Beach, Virginia, this 27th day of April, 2010. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: ~. GC. ly ~ Finance Department City A ey's Office CERTIFICATE The undersigned Clerk of the City Council of the City of Virginia Beach, Virginia (the "City Council"), certifies that: 1. A meeting of the City Council was held on April _, 2010, at the time and place established and noticed by the City Council, at which the members of the City Council were present or absent as noted below. The foregoing Resolution was adopted by a majority of the members of the City Council, by a roll call vote, the ayes and nays being recorded in the minutes of the meeting as shown below: PRESENT/ABSENT: William D. Sessoms, Jr., Mayor Louis R. Jones, Vice Mayor Rita Sweet Bellitto Glenn R. Davis Bill R. DeSteph Harry E. Diezel Robert M. Dyer Barbara M. Henley John E. Uhrin Rosemary Wilson James L. Wood - ~ - ~- - ~- - ~ - ~- - ~- - ~- - ~ - ~- - ~- - ~ VOTE: 2. The foregoing Resolution is a true and correct copy of such Resolution as adopted on April _, 2010. The foregoing Resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on the date hereof. WITNESS my signature and the seal of the City of Virginia Beach, Virginia, this day of April, 2010. Clerk, City Council of the City of Virginia Beach, Virginia (SEAL) 1938389v1 2 -66- Item I.3. ORDINANCES/RESOLUTIONS ITEM # 59872 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Resolution to AUTHORIZE the issuance of a General Obligation School Bond, Series 2010, not to exceed $4, 879, 954 to be sold to the Virginia Public School Authority (VPSA) and issue as qualified school construction bonds Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None April27, 2010 RESOLUTION OF THE CITY OF VIRGINIA BEACH, VIRGINIA AUTHORIZING THE ISSUANCE OF A GENERAL OBLIGATION SCHOOL BOND, SERIES 2010, IN AN AMOUNT NOT TO EXCEED $4,879,954 TO BE SOLD TO THE VIRGINIA PUBLIC SCHOOL AUTHORITY AND PROVIDING FOR THE FORM, DETAILS AND PAYMENT THEREOF After holding a public hearing in accordance with the requirements of Section 15.2-2606, Code of Virginia 1950, as amended (the "Virginia Code"), the issuance of $62,900,000 of bonds of the City was authorized by an ordinance adopted by the City Council of the City of Virginia Beach, Virginia (the "City Council") on May 12, 2009, without being submitted to the qualified voters of the City, to finance various public improvements, including schools, roadways, coastal projects, economic and tourism projects, building and parks and recreation projects, $4,443,112 of which are scheduled to be issued. The School Board of the City has, by resolution, requested the City Council to authorize the issuance of its local school bond and consented to the issuance thereof to the Virginia Public School Authority ("VPSA") which has offered to purchase such bond along with bonds of certain other localities with a portion of the proceeds of bonds expected to be issued by VPSA in June 2010 (the "VPSA Bonds"); and VPSA intends to issue the VPSA Bonds as "qualified school construction bonds" ("QSCBs") within the meaning of Section 54F of the Internal Revenue Code of 1986, as amended (the "Tax Code"), which section was added to the Tax Code by the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5, 123 Stat. 355), enacted on February 17, 2009; and VPSA intends to elect to treat the VPSA Bonds as "specified tax credit bonds" under Section 6431 of the Tax Code, as amended by the Hiring Incentives to Restore Employment Act (Pub. L. No. 111-147, 123 Stat. 301), enacted on March 18, 2010, which status enables an issuer of a QSCB to receive a direct payment of a refundable credit in lieu of providing a tax credit to the purchaser or holder of the QSCB; and The refundable credit payable with respect to each interest payment date will be equal to the lesser of (i) the amount of interest payable under the QSCB on such date or (ii) the amount of interest which would have been payable under the QSCB on such date if such interest were determined at the applicable credit rate determined under Section 54A(b)(3) of the Tax Code (that is, the rate used in computing the amount of tax credit that could be claimed by the QSCB holder absent the "specified tax credit bond" refundable credit election); and Subject to the terms and conditions set forth or referred to below, VPSA will transfer to the City the allocable portion of the refundable credit received by VPSA with respect to the VPSA Bonds; and The allocation of QSCB volume cap pursuant to which VPSA will issue the VPSA Bonds was made by Executive Order 110 (2010) issued by the Governor of the Commonwealth of Virginia on January 13, 2010 (the "Executive Order") to finance specified public school projects, including the City's College Park Elementary School project for which $4,879,954 is allocated in the Executive Order; and The City Council of the City has determined that it is necessary and expedient to borrow an amount not to exceed $4,879,954 and to issue its general obligation school bond for the purpose of financing a portion of the cost of constructing a replacement facility for College Park Elementary School and removing the existing school building (the "Project"), which constitutes a capital project for school purposes; and City Council further acknowledges that the allocation by VPSA to the City of the City's share of issuance costs, any reserve requirements and any original issue discount related to the VPSA Bonds will likely result in the receipt by the City of net proceeds from VPSA in an amount less than $4,879,954. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. Authorization of Local School Bond and Use of Proceeds. The City Council hereby determines that it is advisable to contract a debt and issue and sell its general obligation school bond in a principal amount not to exceed $4,879,954 (the "Local School Bond") for the purpose of financing the Project and certain issuance costs of the Local School Bond. The City Council hereby authorizes the issuance and sale of the Local School Bond in the form and upon the terms established pursuant to this Resolution and the Bond Sale Agreement (herein defined). 2. Sale of the Local School Bond. It is determined to be in the best interest of the City to accept the offer of VPSA to purchase the Local School Bond at a price determined by VPSA and acceptable to the City Manager. The City Manager and such other officer or officers of the City as the City Manager may designate are hereby authorized and directed to enter into a Bond Sale Agreement with VPSA providing for the sale of the Local School Bond to VPSA. The agreement shall be in substantially the form on file with the City, which form is hereby approved (the "Bond Sale Agreement"). 3. Details of the Local School Bond. The Local School Bond shall be dated the date of its issuance and delivery; shall be designated "General Obligation School Bond, Series 2010;" or such other designation as may be appropriate as determined by the City Manager; shall bear interest from the date of delivery thereof payable quarterly or semi-annually on dates specified by VPSA (each, an "Interest Payment Date" at the rates established in accordance with Section 4 of this Resolution; and shall mature annually in the years (each a "Principal Payment Date") and in the amounts (the "Principal Installments") determined by the City Manager, subject to the provisions of Section 4 of this Resolution. 4. Interest Rates and Principal Installments. The City Manager is hereby authorized and directed to accept the interest rates on the Bonds established by VPSA, provided that the true interest cost of the Bonds does not exceed seven and a half percent (7.50%) per annum. The Interest Payment Dates and the Principal Installments may be specified by VPSA. The City Manager is hereby authorized and directed to accept the final Interest Payment Dates and the Principal Installments at the request of VPSA based on the final term to maturity of the VPSA Bonds, requirements imposed on VPSA by the nationally-recognized rating agencies and the final principal amount of the Local School Bond; provided, however, that the principal amount 2 of the Local School Bond shall not exceed the amount authorized by this Resolution and the final maturity of the Local School Bond shall be no later than the earlier of December 31, 2029 and the latest maturity date permitted under Section 54A of the Tax Code. The City acknowledges and agrees that VPSA may charge the City an administrative fee of up to five one hundredths of one percent (0.05%) over the interest rate to be paid by VPSA on the VPSA Bonds (the "Annual Administrative Fee"). The execution and delivery of the Local School Bond as described in Section 9 hereof shall conclusively evidence the final Principal Installments as having been accepted by on behalf of the City as authorized by this Resolution. 5. Acknowledgement of Disclaimer. The City acknowledges that the interest rate on the Local School Bond will be set at the level necessary to pay the interest on the allocable portion of the VPSA Bonds plus VPSA's the Annual Administrative Fee, if any, and that the City will be obligated to pay interest on the Local School Bond at the stated taxable rate thereon regardless of the elimination or reduction of the refundable credit to be received by VPSA due to (i) any amendments by Congress to Sections 54A, 54F or 6431 or any other applicable sections of the Tax Code, (ii) any guidance or changes to guidance provided by the U.S. Department of Treasury or the Internal Revenue Service, or (iii) any action or omission by VPSA, the City or any other locality selling local school bonds to VPSA in connection with the VPSA Bonds that causes the VPSA Bonds to lose their status as QSCBs and/or specified tax credit bonds in whole or in part. It is also acknowledged that the City has the right to affect an extraordinary optional redemption of the Local School Bond in whole or in part upon the occurrence of any of these events as provided in the form of Local School Bond. 6. Certain Investment Earnings. The City Council hereby acknowledges that VPSA will (i) issue the VPSA Bonds with multiple maturities or with a single "bullet" maturity, in either case, with a final maturity date on or shortly before the latest maturity date permitted for the VPSA Bonds under Section 54A of the Tax Code and (ii) invest the Principal Installments for the benefit of the City until they are applied to pay the principal of the VPSA Bonds and (iii) either remit the investment earnings periodically to the City or credit the investment earnings against the City's obligation to make Principal Installments, at the option of VPSA. The City Council further acknowledges that VPSA may cause a portion of such earnings to be deposited into a reserve fund or account to be applied by VPSA for use to pay the costs, fees and expenses described in Section 15 below. Any balance in such reserve fund or account attributable to investment earnings on the City's Principal Installments as reasonably determined by VPSA will be remitted or credited to the City on the final maturity date of the VPSA Bonds. 7. Form of the Local School Bond. The Local School Bond shall be initially in the form of a single, temporary typewritten bond substantially in the form attached hereto as Exhibit A. 8. Payment; Paving Agent and Bond Registrar. The following provisions shall apply to the Local School Bond: (a) For as long as VPSA is the registered owner of the Local School Bond, all payments of principal of and interest, if any, and premium, if any, on the Local School Bond shall be made in immediately available funds to, or at the direction of, VPSA at, or before 11:00 a.m. on the applicable Principal Payment Date or date fixed for prepayment or redemption, or if such date is not a business day for Virginia banks or for the Commonwealth of Virginia, then at or before 11:00 a.m. on the business day next succeeding such Principal Payment Date or date fixed for payment, prepayment or redemption. (b) The Bond Registrar and Paying Agent for the Local School Bond shall be the City Treasurer, unless VPSA requires otherwise, in which case such agents shall be banking institutions selected by VPSA for such purposes. 9. Prepayment or Redemption. The Principal Installments of the Local School Bond may be subject to optional prepayment or redemption prior to their stated maturities as determined by VPSA. The Principal Installments of the Local School Bond will be subject to extraordinary mandatory redemption (i) if certain proceeds of the Local School Bond have not been spent within three years after the date of its issuance and delivery (which three year period may be extended by the U.S. Secretary of the Treasury or his delegate), (ii) due to a loss of "qualified tax credit bond" and "qualified school construction bond" status of the VPSA Bonds corresponding to the Local School Bond under Sections 54A and 54F of the Tax Code, and (iii) if due to (a) any amendments by Congress to Sections 54A, 54F or 6431 or any other applicable sections of the Tax Code or (b) any guidance or changes to guidance provided by the U.S. Department of Treasury or the Internal Revenue Service, there is a reduction or elimination of the direct payment of the refundable credit to be received by VPSA with respect to the VPSA Bonds. The Principal Installments of the Local School Bond shall be redeemed at the redemption prices and upon the other terms set forth in the Local School Bond. 10. Execution of the Local School Bond. The Mayor, City Manager and the Clerk or any Deputy Clerk of the City Council are authorized and directed to execute and deliver the Local School Bond and to affix the seal of the City thereto. 11. Pledge of Full Faith and Credit. For the prompt payment of the principal of and interest, if any, and premium, if any, on the Local School Bond as the same shall become due, the full faith and credit of the City are hereby irrevocably pledged, and in each year while any of the Local School Bond shall be outstanding to the extent other funds of the City are not lawfully available and appropriated for such purpose there shall be levied and collected in accordance with law an annual ad valorem tax upon all taxable property in the City subject to local taxation sufficient in amount to provide for the payment of the principal of and interest, if any, and premium, if any, on the Local School Bond as such principal and interest, if any, and premium, if any, shall become due, which tax shall be without limitation as to rate or amount and in addition to all other taxes authorized to be levied in the City. 12. Use of Proceeds Certificate and Tax Compliance Agreement. The City Manager and such other officer or officers of the City as the City Manager may designate are hereby authorized and directed to execute and deliver on behalf of the City a Use of Proceeds Certificate and Tax Compliance Agreement (the "Tax Compliance Agreement") setting forth the expected use and investment of the proceeds of the Local School Bond and containing such covenants as may be necessary in order to show the compliance of the VPSA Bonds with the provisions of the Tax Code and applicable regulations relating to the qualification of the VPSA Bonds as "qualified tax credit bonds," "qualified school construction bonds" and "specified tax 4 credit bonds" under Sections 54A, 54F and 6431 of the Tax Code. The City Council covenants on behalf of the City that (i) the proceeds from the issuance and sale of the Local School Bond will be invested and expended as set forth in the Tax Compliance Agreement and that the City shall comply with the other covenants and representations contained therein and (ii) the City shall comply with the provisions of the Tax Code so that the VPSA Bonds will not lose their status as "qualified tax credit bonds," "qualified school construction bonds" and "specified tax credit bonds" under Sections 54A, 54F and 6431 of the Tax Code. 13. State Non-Arbitrage Program; Proceeds Agreement. The City Council hereby determines that it is in the best interests of the City to authorize and direct the Director of Finance to participate in the State Non-Arbitrage Program in connection with the Local School Bond. The City Manager and such officer or officers of the City as the City Manager may designate are hereby authorized and directed to execute and deliver a Proceeds Agreement with respect to the deposit and investment of proceeds of the Local School Bond by and among the City, the other participants in the sale of the VPSA Bonds, VPSA, the investment manager and the depository, substantially in the form on file with the City, which form is hereby approved. 14. Continuing Disclosure Agreement. The City Manager and such other officer or officers of the City as the City Manager may designate are hereby authorized and directed to execute a Continuing Disclosure Agreement, as set forth in Appendix F to the Bond Sale Agreement, setting forth the reports and notices to be filed by the City and containing such covenants as may be necessary in order to show compliance with the provisions of the Securities and Exchange Commission Rule 15c2-12, under the Securities Exchange Act of 1934, as amended, and directed to make all filings required by Section 3 of the Bond Sale Agreement should the City be determined by the VPSA to be a material obligated person as described in the Continuing Disclosure Agreement. 15. Fees, Costs and Expenses. The City agrees to pay the following fees, costs and expenses incurred by VPSA in connection with its purchase and carrying of the Local School Bond within thirty days after receipt by the City Manager of a written bill therefor: (A) The City's allocable share of the fees, costs and expenses of the trustee, paying agent and bond registrar under the indenture pursuant to which VPSA will issue the VPSA Bonds and the City's allocable share of any fees, costs and expenses payable to third parties in connection with such indenture or VPSA's School Tax Credit Bond Program, as determined by VPSA; and (B) To the extent permitted by law, the reasonable fees, costs and expenses, including reasonable attorneys' fees, if any, incurred by VPSA in connection with any false representation or certification or covenant default by the City or any City or School City Council official, employee, agent or contractor under the Local School Bond, the Continuing Disclosure Agreement, the Tax Compliance Agreement, the Proceeds Agreement and/or any document, certificate or instrument associated therewith (collectively, the "City Documents"), or in connection with any extraordinary mandatory redemption of the Local School Bond as described in Section 8 above and the corresponding VPSA Bonds, any amendment to or discretionary action that VPSA makes 5 or undertakes at the request of the City under any of the City Documents or any other document related to the VPSA Bonds. 16. Filing of Resolution. The appropriate officers or agents of the City are hereby authorized and directed to cause a certified copy of this Resolution to be filed with the Circuit Court of the City. 17. Election to Proceed under Public Finance Act. In accordance with Section 15.2-2601 of the Virginia Code, the City Council elects to issue the Local School Bond pursuant to the provisions of the Public Finance Act of 1991, Chapter 26 of Title 15.2 of the Virginia Code and the City Charter. 18. Further Actions. The members of the City Council and all officers, employees and agents of the City are hereby authorized to take such action as they or any one of them may consider necessary or desirable in connection with the issuance and sale of the Local School Bond and any such action previously taken is hereby ratified and confirmed. 19. Effective Date. This Resolution shall take effect immediately. *** 6 EXHIBIT A [FORM OF TEMPORARY BOND] NO. TR-1 UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH, VIRGINIA General Obligation School Bond Series 2010 [**] The CITY OF VIRGINIA BEACH, VIRGINIA (the "City"), for value received, hereby acknowledges itself indebted and promises to pay to the VIRGINIA PUBLIC SCHOOL AUTHORITY ("VPSA") the principal amount of DOLLARS ($ ), in annual installments in the amounts set forth on Schedule I attached hereto commencing on September 1, 20 and continuing each September 1 thereafter to and including September 1, 20_ (each a "Principal Payment Date"), together with interest from the date of this Bond on the unpaid installments, payable [quarterly/semi-annually] on and of each year, commencing 1, 2010 (each an "Interest Payment Date," and together with any Principal Payment Date, a "Payment Date"), at the rates per annum set forth on Schedule I attached hereto, subject to redemption as hereinafter provided. The principal of and interest, if any, and premium, if any, on this Bond are payable in lawful money of the United States of America. For as long as VPSA is the registered owner of this Bond, the City Treasurer, as bond registrar (the "Bond Registrar"), shall make all payments of the principal of and interest, if any, and premium, if any, on this Bond, without the presentation or surrender hereof, to or at the direction of VPSA, in immediately available funds at or before 11:00 a.m. on the applicable Payment Date or date fixed for redemption. If a Payment Date or date fixed for redemption is not a business day for banks in the Commonwealth of Virginia or for the Commonwealth of Virginia, then the payment of the principal of and interest, if any, and premium, if any, on this Bond shall be made in immediately available funds at or before 11:00 a.m. on the business day next succeeding the scheduled Payment Date or date fixed for payment or redemption. Upon receipt by the registered owner of this Bond of said payments, written acknowledgment of the receipt thereof shall be given promptly to the Bond Registrar, and the City shall be fully discharged of its obligation on this Bond to the extent of the payment so made. Upon final payment, this Bond shall be surrendered to the Bond Registrar for cancellation. The full faith and credit of the City are irrevocably pledged for the payment of the principal of and interest, if any, and the premium, if any, on this Bond. The resolution adopted by the City Council of the City on April _, 2010 (the "Local Resolution"), authorizing the issuance of this Bond provides, and Section 15.2-2624, Code of Virginia 1950, as amended (the ** Letter designation, if any. A-1 "Virginia Code"), requires, that to the extent other funds of the City are not lawfully available and appropriated for such purpose there shall be levied and collected an annual tax upon all taxable property in the City subject to local taxation sufficient to provide for the payment of the principal of and interest, if any, and premium, if any, on this Bond as the same shall become due which tax shall be without limitation as to rate or amount and shall be in addition to all other taxes authorized to be levied in the City. This Bond is duly authorized and issued in compliance with and pursuant to the Constitution and laws of the Commonwealth of Virginia, including the Public Finance Act of 1991, Chapter 26, Title 15.2, of the Virginia Code, the City Charter and the Local Resolution to provide funds for capital projects for school purposes. This Bond is registered in VPSA's name on the books of the City kept by the Bond Registrar, and the transfer of this Bond may be effected by the registered owner of this Bond only upon due execution of an assignment by such registered owner. Upon receipt of such assignment and the surrender of this Bond, the Bond Registrar shall exchange this Bond for a substitute Bond, and register such substitute Bond on such registration books in the name of the assignee or assignees named in such assignment. [The principal installments of this Bond are not subject to optional prepayment or redemption prior to their stated maturities.] Upon not less than 15 days' written notice from VPSA to the Bond Registrar, this Bond is subject to mandatory redemption in whole or in part in an amount to be specified by VPSA on a date to be fixed by VPSA in the event that, due to a failure by the City to cause 100% of the Available Project Proceeds to be expended by the end of the Expenditure Period for Qualified Purposes, VPSA must redeem a portion of its School Tax Credit Bonds (Direct Payment Qualified School Construction Bonds), Series 2010-1 (the "VPSA Bonds"), pursuant to Section 54A(d)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the "Tax Code"), and Section 3.1(b) of the Second Supplemental Trust Indenture dated as of June 1, 2010 (the "Second Supplemental Indenture"), between VPSA and U.S. Bank National Association, as trustee. The redemption price shall be equal to 100% of the principal amount of this Bond to be redeemed plus a premium equal to any outstanding fees, costs and expenses for which the City is or will become obligated to pay under Section 15 of the Local Resolution as determined by VPSA. Upon not less than 15 days' written notice from VPSA to the Bond Registrar, this Bond is also subject to mandatory redemption in whole or in part in an amount to be specified by VPSA on a date to be fixed by VPSA if, due to a default by the City under the Use of Proceeds Certificate and Tax Compliance Agreement dated the dated date hereof (the "Tax Compliance Agreement"), between VPSA and the City, there occurs a Determination of Loss of QSCB Status (as defined in the Second Supplemental Indenture) with respect to all or any portion of the VPSA Bonds. The redemption price shall be equal to 100% of the principal amount to be redeemed plus a premium equal to the sum of (i) the redemption premium and other amounts VPSA will be obligated to pay in connection with the extraordinary mandatory redemption of the VPSA Bonds under Section 3.1(c) of the Second Supplemental Indenture and (ii) any outstanding fees, costs and expenses for which the City is or will become obligated to pay under Section 15 of the Local Resolution, all as determined by VPSA. A-2 Upon not less than 15 days' written notice from VPSA to the Bond Registrar, this Bond is also subject to mandatory redemption in whole or in part, as determined by the City, on a date to be fixed by VPSA if, due to (i) any amendments by Congress to Section 54A, 54F or 6431 or any other applicable sections of the Tax Code or (ii) any guidance or changes to guidance provided by the U.S. Department of Treasury or the Internal Revenue Service, there is a reduction or elimination of the refundable credit to be received by VPSA with respect to the VPSA Bonds. The redemption price shall be equal to (a) the redemption price VPSA will be obligated to pay in connection with the extraordinary mandatory redemption of the allocable portion of the VPSA Bonds under Section 3.1(d) of the Second Supplemental Indenture and (b) any outstanding fees, costs and expenses for which the City is or will become obligated to pay under Section 15 of the Local Resolution, all as determined by VPSA. Unless otherwise defined, each of the capitalized terms used in the foregoing two paragraphs has the meaning given it in the Tax Compliance Agreement. All acts, conditions and things required by the Constitution and laws of the Commonwealth of Virginia to happen, exist or be performed precedent to and in the issuance of this Bond have happened, exist and have been performed in due time, form and manner as so required, and this Bond, together with all other indebtedness of the City, is within every debt and other limit prescribed by the Constitution and laws of the Commonwealth of Virginia. A-3 IN WITNESS WHEREOF, the City Council of the City of Virginia Beach, Virginia has caused this Bond to be issued in the name of the City of Virginia Beach, Virginia, to be signed by its Mayor, its seal to be affixed hereto and attested by the signature of its Clerk or any of its Deputy Clerks, and this Bond to be dated , 2010. CITY OF VIRGINIA BEACH, VIRGINIA Mayor, City of Virginia Beach, Virginia (SEAL) ATTEST: Clerk, City of Virginia Beach, Virginia A-4 ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: the within Bond and irrevocably constitutes and appoints attorney to exchange said Bond for definitive bonds in lieu of which this Bond is issued and to register the transfer of such definitive bonds on the books kept for registration thereof, with full power of substitution in the premises. Date: Signature Guaranteed: (NOTICE: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Bond Registrar which requirements will include Membership or participation in STAMP or such other "signature guarantee program" as may be determined by the Bond Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. Registered Owner (NOTICE: The signature above must correspond with the name of the Registered Owner as it appears on the front of this Bond in every particular, without alteration or change.) A-5 SCHEDULEI AMORTIZATION SCHEDULE Requires an affirmative vote by a majority of the elected members of the City Council. Adopted by the City Council of the City of Virginia Beach, Virginia, this 27thday of April, 2010. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Finance Department I City A ey's Office CERTIFICATE The undersigned Clerk of the City Council of the City of Virginia Beach, Virginia (the "City Council"), certifies that: 1. A meeting of the City Council was held on April _, 2010, at the time and place established and noticed by the City Council, at which the members of the City Council were present or absent as noted below. The foregoing Resolution was adopted by a majority of the members of the City Council, by a roll call vote, the ayes and nays being recorded in the minutes of the meeting as shown below: PRESENT/ABSENT: William D. Sessoms, Jr., Mayor Louis R. Jones, Vice Mayor Rita Sweet Benito Glenn R. Davis Bill R. DeSteph Harry E. Diezel Robert M. Dyer Barbara M. Henley John E. Uhrin Rosemary Wilson James L. Wood -~ - ~- - /- - ~- - ~- - ~- / - - ~- - /- - ~- VOTE: 2. The foregoing Resolution is a true and correct copy of such Resolution as adopted on April _, 2010. The foregoing Resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on the date hereof. WITNESS my signature and the seal of the City of Virginia Beach, Virginia, this _ day of April, 2010. Clerk, City Council of the City of Virginia Beach, Virginia (SEAL) 1937915x2 ~RGINIA BEACH CITY PUBLIC SCHOOLS __ A H E A D O F T H E C U R V E SCHOOL BOARD Daniel D. Edwards Chairman District 1-Centerville 1513 Beachview Drive VA Beach, VA 23464 495.3551 (h) • 717-0259 (c) William J. "Bill" Brunke, N Vice-Chairman District 7 -Princess Anne 4099 Foxwood Drive, Suite 201 Virginia Beach, VA 23462 222-0134 (w) • 286-2772 (c) Todd C. Davidson At-Large 2424 Savannah Trail VA Beach, VA 23456 427-3330 (w) .285-9409 (c) Emma L. "Em" Davis District 5 - Lynnhaven 1125 Michaelwood Drive VA Beach, VA 23452 340-8911 (h) Patricia G. Edmonson District 6 -Beach 205 34'" Street, #1515 VA Beach, VA 23451 675.0137 (c) Brent N. Mckenzie District 3 -Rose HaII 1400 Brookwood Place VA Beach, VA 23453 816-2736 (c) Ashley K. McLeod At-Large 5508 Del Park Avenue VA Beach, VA 23455 552-0348 (h) Patrick S. Salyer At-Large 1741 Seaton Drive VA Beach, VA 23464 620-2141 (c) D. Scott Seery At-Large 222 Central Park Ave. Ste 1300 VA Beach, VA 23462 333-4042 (w) • 353-7766 (c) Sandra Smith-Jones District 2 - Kempsville 705 Rock Creek Court VA Beach, VA 23462 490-8167 (h) Carolyn D. Weems District 4 - Bayside 1420 Claudia Drive JA Beach, VA 23455 464-6674 (h) SUPERINTENDENT James G. Merrill, Ed.D. ?512 George Mason Drive JA Beach, VA 23456 ?63-1007 RESOLUTION REQUESTING THE CITY COUNCIL TO ISSUE GENERAL OBLIGATION SCHOOL BONDS TO FINANCE CAPITAL PROJECTS FOR SCHOOL PURPOSES AND CONSENTING TO THE ISSUANCE THEREOF WHEREAS, on March 25, 2010, the Virginia Public School Authority (VSPA) Board adopted a resolution authorizing the issuance of up to $100,000,000 of School Tax Credit Bonds (Direct Payment Qualified School Construction Bonds) Series 2010-1. The purpose of the issue is to provide financing for the pool of school projects and localities identified in Executive Order 110 (2010); and WHEREAS, in order to participate in the program, the City will need to issue a taxable general obligation school bond with a taxable level maximum interest rate; and WHEREAS, the School Board and the City Council must authorize the issuance of such Bond no later than May 14, 2010; and WHEREAS, the School Board is requesting that $4,879,954.00 of the College Park Elementary School Replacement costs be financed through the VSPA's newly authorized Qualified School Construction Bond program. NOW, THEREFORE, BE IT: RESOLVED: That the School Board requests that the City Council issue its general obligation school bonds (the "Bonds") in an aggregate principal amount not to exceed $4,879,954, to finance a portion of the construction costs for replacing College Park Elementary School, which constitutes a capital project for school purposes; and be it FURTHER RESOLVED: That the School Board consents to the issuance of the Bonds; and be it FURTHER RESOLVED: That the School Board authorizes the Superintendent or the Chairman to take all action necessary on behalf of the School Board for the issuance of the Bonds; and be it FURTHER RESOLVED: That a copy of this resolution be spread across the official minutes of the Board. Adopted by the School Board of the City of Virginia Beach on this 201h day of April, 2010. SEAL Daniel D. Edwards, Chairman ,~ Attest: G ten Dianne P. Alexander, Clerk of the Board School Administration Building • 2512 George Mason Drive • P.O. Box 6038 • Virginia Beach, VA 23456-0038 DRAFT 4/16/10 VERSION VIRGINIA PUBLIC SCHOOL AUTHORITY SCHOOL TAX CREDIT BOND PROGRAM BOND SALE AGREEMENT City of Virginia Beach VPSA Sale Date: Expected to be on or about May _, 2010 Closing Date: Expected to be on or about June 3, 2010 Maximum Authorized Par Amount: $ 4,879,954 Amortization Period: 17 years 1. The Virginia Public School Authority ("VPSA") hereby offers to purchase, solely from the proceeds of VPSA's School Tax Credit Bonds (Direct Payment Qualified School Construction Bonds), Series 2010-1 (the "VPSA Bonds"), your general obligation school bond ("local school bond") at a price, determined by VPSA to be fair and accepted by you, that, subject to VPSA's purchase price objective and market conditions described below, is substantially equal to your Proceeds Requested set forth above (as authorized by your local resolution, as defined below). The sale date of the VPSA Bonds is tentatively scheduled for May _, 2010 but may occur, subject to market conditions, at any time between May _, 2010 and May _, 2010 (the "VPSA Sale Date"). You acknowledge that VPSA has advised you that its objective is to pay you a purchase price for your local school bond which in VPSA's judgment reflects its market value ('purchase price objective') taking into consideration such factors as the purchase price received by VPSA for the VPSA Bonds, the underwriters' discount and other issuance costs of the VPSA Bonds and other market conditions relating to the sale of the VPSA Bonds. You further acknowledge that VPSA has advised you that such factors may result in your local school bond having a value other than par and that in order to receive an amount of proceeds that is substantially equal to your Proceeds Requested, you may need to issue your local school bond with a par amount that is greater or less than your Proceeds Requested. You, at the request of VPSA, agree to issue your local school bond in a par amount not in excess of the Maximum Authorized Par Amount to provide, to the fullest extent practicable given VPSA's purchase price objective, a purchase price for your local school bond and a proceeds amount that is substantially equal to your Proceeds Requested. You acknowledge that the purchase price for your local school bond will be less than the Proceeds Requested should the Maximum Authorized Par Amount be insufficient, based upon VPSA's purchase price objective, to generate an amount of proceeds substantially equal to your Proceeds Requested. DRAFT 4/16/10 VERSION 2. You represent that the City of Virginia Beach has duly authorized the issuance of your local school bond by adopting a resolution in the form attached hereto as Appendix B (the "local resolution") and that your local school bond will be in the form set forth in the local resolution. 3. You hereby covenant that you will comply with and carry out all of the provisions of the Continuing Disclosure Agreement in the form attached hereto as Appendix E, which agreement is hereby incorporated by reference herein and expressly made a part hereof for all purposes. VPSA has defined a Material Obligated Person ("MOP") for purposes of the Continuing Disclosure Agreement as any Locality the principal amount of whose local school bond pledged under the Master Trust Indenture dated as of October 1, 2009 between VPSA and U.S. Bank National Association, as trustee, as amended and supplemented from time to time (the "Indenture") comprises more than 10% of the total principal amount of all bonds of VPSA outstanding under the Indenture. MOP status with respect to the VPSA Bonds as the first series of bonds under the Indenture, will be determined by comparing the principal amount of your local school bond to the principal amount of the VPSA Bonds. MOP status for future VPSA bonds issued under the Indenture will be determined by adding the principal amount of your local school bond(s) to be sold to VPSA and the principal amount of your local school bond(s) previously sold to VPSA and pledged under the Indenture and measuring the total against 10% of the face value of all bonds of VPSA outstanding as of a bond closing date under the Indenture. If you are or may be a MOP with respect to the VPSA Bonds, VPSA will require that you file all the information described in the following paragraph prior to VPSA's distribution of its Preliminary Official Statement, currently scheduled for 2010. You acknowledge that if you are, or in the sole judgment of VPSA may be, a MOP following the issuance of your local school bond that is the subject of this Bond Sale Agreement, VPSA will include by specific reference in its Preliminary Official Statements and final Official Statements (for this sale and, if you remain a MOP or become a MOP again after ceasing to be a MOP, for all applicable future sales) the information respecting you ("Your Information") that is on file with the Municipal Securities Rulemaking Board (the "MSRB") through its Electronic Municipal Market Access System. Accordingly, if VPSA has determined that you are at any time a MOP (I) following the delivery of your local school bond to VPSA in connection with this sale, or (II) during the course of any future sale, whether or not you are a participant in such sale, you hereby represent and covenant to VPSA that you will file such additional information, if any, as is required so that Your Information, as of each of (I)(A) the date of VPSA's applicable Preliminary Official Statement (in the case of this sale, expected to be , 2010), (B) the date of the VPSA's applicable final Official Statement (in the case of this sale, expected to be May _, 2010) and (C) the date of delivery of VPSA's bonds (in the case of this sale, expected to be June 3, 2010) and (II) such other dates associated with future sales as VPSA may specify to you, will be true and correct and will not contain any untrue statement of a material fact or omit to state a material fact which should be included in Your Information for the purpose for which it is included by specific reference in VPSA's Official Statement or which is -2- DRAFT 4/16/10 VERSION necessary to make the statements contained in such information, in light of the circumstances under which they were made, not misleading. You further agree to furnish to VPSA a copy of all filings related to your local school bond(s) you make with the MSRB subsequent to the date of this Agreement. Such copy will be furnished to VPSA on or before the day that any such filing is made. VPSA will advise you in writing within 60 days after the end of each fiscal year if you were a MOP as of the end of such fiscal year. Upon written request, VPSA will also advise you of your status as a MOP as of any other date. You hereby covenant that you will provide the certificate described in clause (e) of Section 4 below if VPSA includes Your Information by specific reference in its disclosure documents in connection with this sale or any future sale, whether or not you are a participant in such sale. 4. VPSA's commitment to purchase your local school bond is contingent upon (I) VPSA's receipt on the Closing Date of (a) your local school bond which shall include and otherwise meet the Standard Terms and Conditions contained in Appendix A hereto, (b) certified copies of the local resolution (see Appendix B attached hereto) and the school board resolution, if applicable (see Appendix C attached hereto), (c) an executed agreement, among VPSA, you and the other local units simultaneously selling their bonds to VPSA, and the payment by you and the other local units of the allocable, associated costs of compliance with the Internal Revenue Code of 1986, as amended (the "Proceeds Agreement"), (d) an executed copy of the Use of Proceeds Certificate and Tax Compliance Agreement (the "Tax Compliance Agreement") in the form attached hereto as Appendix D, (e) if VPSA has included by specific reference Your Information into VPSA's Preliminary and final Official Statement, your certificate dated the date of the delivery of VPSA's Bonds to the effect that (i) Your Information was as of the date of VPSA's Preliminary and final Official Statements, and is as of the date of the certificate, true and correct and did not and does not contain an untrue statement of a material fact or omit to state a material fact which should be included in Your Information for the purpose for which it is included by specific reference in VPSA's official statements or which is necessary to make the statements contained in such information, in light of the circumstances under which they were made, not misleading, and (ii) you have complied in all material respects with your undertakings regarding the amendments adopted on November 10, 1994 to Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, for the preceding five years, (f) an approving legal opinion from your bond counsel in form satisfactory to VPSA as to the validity of your local school bond, the conformity of the terms and provisions of your local school bond to the requirements of this Bond Sale Agreement including the appendices attached hereto, and the due authorization, execution and delivery of this Bond Sale Agreement, Continuing Disclosure Agreement, Tax Compliance Agreement and the Proceeds Agreement, and the validity of the Continuing Disclosure Agreement, the Tax Compliance Agreement and the Proceeds Agreement, (g) such other closing documents as the underwriters of the VPSA Bonds may reasonably request, and (h) a transcript of the other customary closing documents not listed above, and (i) the proceeds of the sale of the VPSA Bonds. One -3- DRAFT 4/16/10 VERSION complete original transcript of the documents listed above shall be provided by your counsel to McGuireWoods LLP, bond counsel to VPSA, on the Closing Date or, with VPSA's permission, as soon as practicable thereafter but in no event more than thirty (30) business days after the Closing Date. 5. Subject to the conditions described in Section 4 hereto, this Bond Sale Agreement shall become binding as of the later of the VPSA Sale Date and the date you execute this Bond Sale Agreement. -4- DRAFT 4/16/10 VERSION Dated: May _, 2010 VIRGINIA PUBLIC SCHOOL AUTHORITY CITY OF VIRGINIA BEACH By: Authorized VPSA Representative By: Name: Title: [SIGNATURE PAGE OF BOND SALE AGREEMENT] -5- -67- Item I.4. ORDINANCES/RESOLUTIONS ITEM # 59873 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinance to DECLARE City-owned property excess and AUTHORIZE the City Manager to convey same to Tidewater Community College re construction of a joint use library Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April27, 2010 1 A ORDINANCE DECLARING 3.171+/- ACRES OF CITY- 2 OWNED PROPERTY EXCESS AND AUTHORIZING THE 3 CITY MANAGER TO CONVEY SAME TO TIDEWATER 4 COMMUNITY COLLEGE FOR CONSTRUCTION OF A 5 JOINT USE LIBRARY 6 ~ WHEREAS, the City of Virginia Beach (the "City") owns approximately 3.171 8 acres of real property (the "City Property") located at the corner of Faculty Boulevard 9 and South Rosemont Road in the City of Virginia Beach, adjacent to Tidewater to Community College ("TCC"); 11 12 WHEREAS, on December 11, 2001, City Council adopted a term sheet (the 13 "TCC Term Sheet") that recognized the City's participation in the expansion of TCC and 14 contemplated the conveyance of the City Property to TCC; 15 16 WHEREAS, TCC and the City plan to develop a Joint Use Library on the City 17 Property (the "Joint Use Library"); is 19 WHEREAS, the Joint Use Library would serve both TCC students and citizens of 2 o the City; 21 22 WHEREAS, the City Council is of the opinion that the City Property is in excess 23 of the needs of the City and desires to dedicate the City Property to TCC for the 24 development and construction of the Joint Use Library. 25 26 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 27 VIRGINIA BEACH, VIRGINIA: 28 2 9 1. That the following described City Property is hereby declared to be in 3 o excess of the needs of the City of Virginia Beach (the "City") and that the City Manager 31 is authorized to convey said property to the State Board of Community Colleges for 32 Tidewater Community College ("TCC") on the terms and conditions set forth in the TCC 3 3 Term Sheet: 34 35 Parcel C, as shown on that certain survey entitled "Physical Survey of 3 6 Parcel C & Parcel D Property of Baymark Construction Corporation", 3 ~ attached hereto as Exhibit A and incorporated herein. 38 3 9 2. That the City Manager is hereby authorized, on behalf of the City, to 4 o execute all documents necessary to carry out the dedication of the City Property to 41 TCC, provided the terms of such documents are consistent with the TCC Term Sheet, 42 attached hereto and incorporated herein as Exhibit B, and such other terms and 43 conditions deemed necessary and sufficient by the City Manager and in a form deemed 44 satisfactory by the City Attorney. 45 Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day 46 of April , 2010. (Requires an affirmative vote by a majority of the members of the City Council ] APPROVED AS TO CONTENT: r~ Department of P lic Libraries APPROVED AS TO LEGAL SUFFICIENCY: ~----. City CA11404 \\vbgov. com\DFSl\Applications\CityLawProd\cycom32\Wpdocs\D007\P007\00051128. DOC R-1 April 14, 2010 rney's Office EXHIBIT A s 0 i $ 8 p ~6 z im mho ! m N;~ _ ~ ~-O • U J "I '~ 4 #~ m=O 99 p~A U ~~ ZZm N vm ~Nj z~ ~ ~ . in J ~y. ~~nn m~m DD T m~ ° i m ~ \ ~ ~2 O N /lm~ D O N \ / ~\ __-= r z smimz a m~ ;~~ '2~0 m mU~ p m" N 4V ~OA J gNmm< u "Ins .~ \ ~, . z.u ~ ~ m~~ oq $U a k~s v 4jfR~. p m L fy~RO'rF J4J ~ ti ~ j ^' J ~ m ; • D ° an , k~; o mpr-~zD I A 0 ~j\ J4 1' Oo ~ 3 I I I II A T~ C 4CCF~~i ~ VI `O O n U P O ~RNb N.10 ~~9~SJ,~9 °9 1 ~. / ~~ ~ ' Ua 0 ' 0 ro4 ~~ V O l_ ~ ~~ mZ ~~ /~ • F mo OmOrtiAD 4i II n A N II uo n \ ~ ~ ~ z ~ om ~ o am o Oa mOy O~^,I 9umi 4'NO~P A \ ~~ - y'~ I ~ ~ ~ ~~ C]I mZ T < Nm Ula ~VI '?N_(nJ J4 OYO ~ xU~ rg NI\,1 P V!m \ °UN~ ~Z- Nm m~ 4~ On ~ Gy ~ v r r p ~ U m _ m _~ 1~ N . u N - ; / ,a ~ f~l (/I M. a B. 254, PG. 4-9 p ~ ~ ~ mmma~ A \ - _ _ / ~ m aUO S .~ ~~~_~ - - ~ •p B a ~ ~ psm \ _ - / o 6y ` V o ~ A ~ O x ;' V N ~ _ ~ ~y`~ ~ ~a in "~ a ~ ( a ~_ i a a • i ~ ~ y ~9~ ; ,~ m z ` n n ~~ O p ~ 2 ~ ~ yyy, N ~1 J O N z un n 2 r4 O m A ~ x ~o 2~ ~ N N Om ~ O 8 ~ Z -~ ° O vN ~ rn ~AmD Z~~ O N [ m NpD 1 J m 4 N y ' ~C ,iZFG~ 3 mm ~u~i m \ ~ Z y < p Uyln ox g r ~ti mtn N Dy~ min i omin N o G ~ .y L i ~y \ ~s~ y Aa ~° y z min ~~ ~~~~ V° ° A~Z VI O D N =2 z Z~ NN m y _ z v OO A Or-SAD 9 ~ a y y ~2 ~ ~~+~C ~ m ~ n n n n n° CC Z ~ S g mza 2 m L ~ A (~ °zi ~ o~ tl~ r°.i bi N czi o o^'~n m o ~o a v V n o +u.~~ o ~ z o i F z O L Np D n m"p'D n = ~ ~ N ~i z m .J v 0 9~ ~, n m D AsF N~Z = m 00 << 0 f m ~ Fi Q~ z.. y li' s i 5 = ~,, I ~ o nN O pp m rn0 -~ A s Z ~ y Ay O Z A D (/1 am a mm 1~ + g ~ I ~ Zm C m O O; S ~O ~ n N I li p H ~ D ~ ~~ E y m ~'^ D N A in ; m ~I }¢~~~o~o m = m ~~i ~ r~ KAp v s s'nv zz v - s mod 5 n~ = _ _ PPmmZZZZ 5 9Dm 9 9~m n S O I ;~~N N~p p y Z~ O~ ~m~ ~ D D ~ mph Dmp L ~~~ m C i °v ° ~ yy A D ~ ££> m ... "¢1 VI =.mV. pmD +1p~ N ~~ £ZK A= 2p= ~ i r~Tan ~ off= ~ / In~ a ~ ' A9° n ~ i zm N .a p O N~7 ' O ~~O ~ ZO j~ I ~ i N O I h £ V ~ D m O O ~ !Y I I.„ m Z D ~ U ~, ~ ° a ~ h 00 ~ m~ D ~~ ~ - I ~~ 3 D ~ N ~ S ' a~ ~ PARCEL C &~e ex~ i~g:= 9= D n m I~ JJ EXHIBIT B TERM-SHEET IMPLEMENTATION OF TIDEWATER COMMUNITY COLLEGE'S STRATEGIC PLAN Representatives of the City of Virginia Beach ("City") and Tidewater Community College ("TCC")have been discussing a possible partnership for implementation of TCC's Strategic Plan for the Virginia Beach Campus. This Terrn-Sheet is intended to reflect the shared understanding of both parties and their respective commitments and to update the 1996 Memorandum of Understanding between the City and TCC. The Term-Sheet is not intended to be a legally binding agreement, and all commitments outlined are subject to City Council and the Commonwealth of Virginia's ("Commonwealth")future appropriation. The policy implications associated with this Term-Sheet are outlined in the attached Policy Report that was presented to City Council on November 27, 2001. City will provide for site improvements associated with a major initiative for the strategic plan of TCC as outlined in the attached Policy Report . 2. TCC agrees to provide, in a timely fashion and in a format suggested by the City, its annual request for capital funding. 3. The appropriation process of the Commonwealth involvestheappropriationoffunds for both maintenance and operation of the Virginia Beach Campus, and for construction of its buildings. It is understood and agreed by TCC that the City shall be bound and obligatedhereunder only to the extent that funds shall be appropriated and budgeted for particular projects pursuant to Article VII, Section 10 of the Constitution of Virginia and subject to appropriation by City Council. 4. The appropriation process of the Commonwealth is summarized in the biennial budget bill. The biennial budget bill typically provides, in pertinent part: "Expenditure for land acquisition, site preparation beyond five feet from a building, and the construction of additional outdoor lighting, sidewalks, outdoor athletic and recreational facilities, and parking lots in the Community College system shall be made only from appropriated Trust & Agency Funds, including local government allocations and appropriations, or the proceeds of indebtedness authorized by the General Assembly.." 5. Both parties agree to .coordinate lobbying efforts with the General Assembly delegation and the new Governor for inclusion in the State's capital program. 6. The City may provide funding for site acquisition and site preparation beyond five feet from the campus buildings provided that there are sufficient funds appropriated by the Commonwealth for the campus buildings for the purposes requested. 7. Because local funds may, consistent:~r~ith the biennial budget bill, be appropriated and allocated to the Trust and Agency Funds to be spent at TCC, both parties agree that the State Board for Community Colleges, as provided in Chapter 16 of Title 23 of the Code of Virginia, is the appropriate body to contract for the design and construction of site improvements five feet from the campus buildings. TCC will be solely responsible for all legal and risk management issues associated with the design, construction and operation of these facilities. 8. TCC will be responsible for ensuring that the design, construction, and inspection of site improvements shall be performed in accordance with state procurement code and state and local regulations. 9. TCC agrees to provide appropriate documentation to the City verifying that City- provided funds were expended for the intended purpose. This documentation may include, but shall not be limited to, copies of bids, contracts, and final payments. 10. In furtherance of the City's plan for the Princess Anne Commons and TCC's strategic and master plans, the City also agrees to use its best efforts to purchase properties or obtain an option for the properties labeled as Parcel A, Parcel B, Parcel C, Parcel E, Parcel F and Parcel G as outlined on a map entitled Tidewater Community College (Appendix D map prepared by the City's Center for GIS}. 11. Due to imminent development potential, the City will use its best efforts to purchase Parcel E during FY 2001-2002. With the adoption of this Policy Report/Term-Sheet, City Council will be forwarded an Agenda Request/Ordinance appropriating funds for this purpose. The City will use its best efforts to purchase Parcels F and G during FY 2002-2003, and Parcels A, B, and C during FY 2003-2004. 12. Once the City acquires title to any one of the parcels enumerated above, the City will effect a transfer of title to the State Board for Community Colleges. If funds are not appropriated by the General Assembly within six years from the date title was transferred to the State Board for Community Colleges by the City, the title may, at the City's option, revert back to the City. 13. If any parcel of property is planned to be used for non-educational purposes, the arrangements for transfer of its title shall be determined collaboratively between the City and TCC with a mutually agreed sharing of the subsequent revenue stream, if any. 14. Both parities agree that this Term-Sheet may be revised by mutual agreement, in writing, as circumstances may dictate. 15. The following schedule details the proposed timing of both party's funding: Proposed Schedule for TCC Improvements - - _ - I-- Future Total Phase One ~ Phase Two Phase Three Costs ~ Costs _... _ _ _. - - - i ___ _ _._ -- ~ r City Proposed Commitments --- . .._ - i-___ _ __ _. _-._ _ __ _ _ _-_ ~ -._ _ - Land Purchase ' Parcel E I _ 240,733 , _- . _ _ _ _ _ __ __ _ _- . - Land Purchase ' - Parcels F and G 778,950 ': -- ------ - - -- -- -- ---- --- _- . _ -- - - - - - Land Purchase ' -Parcels A, B, and C , I- -- ; __ 2,222,735T_ _ _____~. - --- Site Improvements ~ 000 j 249 _ ~ _ _ _ Bridge forADAAccess _- _________. __. ___ _ , I ~ ___-__ ______ - - ! i Erosion Control 160,000 _- ! Thinning Woodland ------- ._ -' ~ 100,000 - - _____-.___'~ - ' -- I I _ ___.. -_ - Rmg Road '" -~ 1,165,000 - --- ~ - - -- -- -- - --- --- Science Building 1,545,000 ' _ _ _ Regional Health Science Center- Phase I - ; 1,500,000 -_- ____~ -_ ___ ~ _ Retrofit Older Buildings 750,OOOT-__ ___- _-_ ___ Learning Resource Center Ex ansion p 588,000 i -__i _- -- ---- - -- Regional Health Science Center_Phase II - ! 800,000 _.__I_. -,------ ---- - - --- - Workforce Development.Center.---- --~--~ Subtotal ----- -- -----'- ~ 7,049,418 ! 1,800,000 I --__---~------.;: --------=-- --------~---------. 2,250,000 800,000 1,800,000 11,899,418 --- -i - ------- ------ - _ .. - -- --- - ---------- --------- ------ TCC Proposed Commitments --- -- -- ----- _ --- -- --- __ - -i-- - ----- -- --- --- ---- ' --- -~--- -- ---------r-----------r _._ Science Building -----_-- I Regional Health Science Center - Phase I - - 17,218,000 ~ __ _ __________ I _.~-_--_. _ 13,652,000 C i --r _ __--__ -._ -t--.-------- I 00 081 ! 14 ~ Retrofitting, Six Oldest Buildings __ _ - - 0 , , Learnrng Resource Center Expansion 7,512,000 1 _ Regional_Health Science Center- Phase II - i I _ -- - - _8,642,000 - i _ ___ -___._______. 000 -_---- --- j 790 5 _- j Student Center ------- -------- -- I - -- - ~- _ _-_. ____ , , _ - __ 184,000 ~ 6 ~. Workforce Development Center_ - --- Subtotal 24,730,000 ! __ _ , 27,733,000 ; 14,432,000: 6,184,000 73,079,000 " Land Purchase figures are based on assessment data -actual appraisals will cause this cost to vary. Costs are in current-year (2001) dollars and do not account for inflation. '" Funded in current CIP 16. Both the City and TCC agree to meet and confer as necessary in furtherance of the objectives expressed in this Term-Sheet. _, - ~~; • t ~ '~ ~ . - //./ .~` / ~ ,~ "~ . . 'g~ , '. _ _ u ~ ~~ ~ 4 ~ -. ~ n 7 S 4 - _ f y„ LL ,,~ -mow '.~ -. O ~ r, 1. C T~ ; 1 r ~ 1 r- a. ti :~ ~ _. / ~~,'"acv f' ~_ 1 _-~ I ~ , _ ~_V ~ `_ _ _ _ _ _ ~'_ • f~ Feet 1 ~.. G , ~ r ~ ~' ~ ~`` ~: . --- ~ tom: - -_ i^ Il v; ~ - ~ ~. I ~ L/y{/~J~' ' i i ~ i~}, ~ ~ yt~+ i // ....: :V ' , ~ T'~ _ CL Fes[ ~.1. ~ ~-~'-1 ~--- , t' _ ~~: ~ ' ~ - - ty Iii F` / ~ / ~~ ~ ` ~~; l `• l r t~ It ` i `- ~a ,...~.` ~'. ! I }5 , 5'S f / , i 5 I l~ f l~r iii ~~ ` t,~l ~ _ - .-~ ~I ~ +,~ ' f 7 1'S', 'I y ~~ ~ ~` 1 ii , . ~f ~~ ` •` / '~ j ` r ~, i~ . ~ i l O `•..~ ~`, O ~ ~ '•, ~ LC} H ~ ~` ~ ~ ~ A ;~~' { ~ 4 Q f r' ~ V ~ ~~ ~ ~ O ~~ 47 7~ ~) m `Fi ~~- ~, 4 ~ r ~ ~ i ~~ ~ ~ ~ ~ ~ -r k~ ~-~ ~ , 4 s.,~ ~~~~~~ ~ -68- Item I.S. ORDINANCES/RESOLUTIONS ITEM # 59874 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinance to AUTHORIZE the City Manager to execute a Lease, not in excess of five (S) years, with The Contemporary Art Center of Virginia at 2200 Parks Avenue Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April27, 2010 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LEASE NOT IN 3 EXCESS OF FIVE YEARS WITH THE 4 CONTEMPORARY ART CENTER OF VIRGINIA 5 FOR 9.617 ACRES OF CITY OWNED LAND 6 LOCATED AT 2200 PARKS AVENUE 7 TOGETHER WITH THE BUILDING AND 8 IMPROVEMENTS THEREON COMMONLY 9 KNOWN AS "THE CONTEMPORARY ART 10 CENTER OF VIRGINIA" 11 12 WHEREAS, the City of Virginia Beach ("the City") is the owner of 9.617 acres of 13 land and all improvements thereon (the "Premises"), shown on Exhibit A and located 14 at 2200 Parks Avenue; 15 16 WHEREAS, the Contemporary Art Center of Virginia has leased the Premises 17 from the City since 1986 for the operation of the Contemporary Art Center; 18 19 WHEREAS, the Contemporary Art Center of Virginia would like to renew its lease 20 agreement with the City for the Premises; 21 22 WHEREAS, City staff has determined that continuing to lease the Premises to 23 the Contemporary Art Center of Virginia will benefit the citizens of the City of Virginia 24 Beach and tourists visiting the community by providing a needed service; 25 26 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 27 OF VIRGINIA BEACH, VIRGINIA: 28 29 That the City Manager is hereby authorized to execute a lease for a term not in 30 excess of five years between the Contemporary Art Center of Virginia and the City for 31 the Premises in accordance with the Summary of Terms attached hereto and such other 32 terms, conditions or modifications deemed necessary and sufficient by the City Manager 33 and in a form satisfactory to the City Attorney. 34 35 Adopted by the Council of the City of Virginia Beach, Virginia on the 27th day of 36 Anr i 1 , 2010. CA11410 \\vbgov.com\DFSt Wpplications\CityLawProd\cycom32\Wpdocs\D013\P006\00051790.DOC R-1 DATE: April 16, 2010 APPROVED AS TO LEGAL SUFFICIENCY AND FORM G(~( Signature APPROVED AS TO CONTENT ~~G Signature l7MS ~~~ ~~~`~ ~~~ Of~•~c Departm nt SUMMARY OF TERMS LEASE FOR THE USE OF 9.617 ACRES OF CITY REAL PROPERTY AND IMPROVEMENTS THEREON LESSOR: City of Virginia Beach LESSEE: CONTEMPORARY ART CENTER OF VIRGINIA PREMISES: Approximately 9.617 Acres of City property, which includes a 38,000 square foot facility located at 2200 Parks Avenue and known as the Contemporary Art Center of Virginia. TERM: May 1, 2010 through Apri130, 2015 RENT: Rent shall be One Dollar ($1.00) Per Annum RIGHTS AND RESPONSIBILITIES OF THE CONTEMPORARY ART CENTER OF VIRGINIA: • Will use the Premises for art exhibits, related special events, receptions, meetings, art classes, and such other activities as will enhance the public's access to art and culture in the City of Virginia Beach and for no other purpose. • Will remain open to the general public for at least 120 days and a total of at least 1,000 hours per year. • Will erect and maintain a sign during the term of the Lease, which shall give recognition to the Lessor as a principal in the ownership and establishment of the Premises. • Will maintain commercial general liability insurance with policy limits of not less than one million dollars ($1,000,000) combined single limits per occurrence, issued by an insurance company licensed to conduct the business of insurance in Virginia. Such insurance shall name the City of Virginia Beach as an additional insured. • Will assume the entire responsibility and liability for any and all damages to persons or property caused by any act or omission of the Lessee or its agents, etc. associated with the use of the Premises. • Will comply with all applicable laws, ordinances, and regulations in the performance of its obligations under the Lease. RIGHTS AND RESPONSIBILITIES OF THE CITY: Will have access to the Premises at reasonable times, during normal business hours, for the purposes of inspecting or repairing the Premises; however, no notice need be given in the event of an emergency. • Will maintain the Premises in good condition and repair, including all buildings and improvements, sidewalks, and landscaping. • Will provide payment for all water, sewer, and stormwater utility costs, and for the costs of waste collection. TERMINATION: In the event of a default by the Tenant, the City may terminate the Lease whereupon Tenant shall quit and surrender the Premises to the City. \\vbgov.com\DFS 1\Applications\CityLawProd\cycom32\Wpdocs\D013\P006\00051791.DOC LEASE AGREEMENT FOR CONTEMPORARY ART CENTER OF VIRGINIA THIS AGREEMENT (the "Lease") is entered into as of the 15~ day of May 2010, by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation of the Commonwealth of Virginia, (the "City") and the CONTEMPORARY ART CENTER OF VIRGINIA, a corporation of the Commonwealth of Virginia, (the "Tenant"). WITNESSETH: That the City, for and in consideration of the rent, and of the covenants and agreements to be kept and performed by the parties hereto, agrees to rent and does by these presents hereby rent to the Tenant, and the Tenant does hereby accept said Lease upon the terms and conditions set forth herein, all that certain piece, parcel, or tract of land, together with any and all improvements and appurtenances thereon, belonging, lying, situate and being in the City of Virginia Beach, Virginia, the following described property (the "Premises"), to-wit: All that certain 9.617 acres of pieces or parcels of land as shown on the certain subdivision plat entitled "PLAT SHOWING PUBLIC UTILITY EASEMENT & VACATION OF RIGHT OF WAY LINES & RESUBDIVISION OF PROPERTY TO THE NORTH AND SOUTH OF OLD VIRGINIA BEACH ROAD FOR THE CITY OF VIRGINIA BEACH, LYNNHAVEN BOROUGH< VIRGINIA BEACH, VIRGINIA BUREAU OF SURVEYS AND MAPPING ENGINEERING DIVISION DEPARTMENT OF PUBLIC WORKS CITY OF VIRGINIA BEACH, VIRGINIA DATED NOV. 26, 1990, REV. DATE: FEB. 7, 1991, REV. DATE: MAR. 7, 1991, REV. DATE: APR. 10, 1991, SCALE: 1" = 100"', a copy of which is recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Map Book 211 at Page 96-97. GPIN: 2417-88-0355 This Agreement and Lease is conditioned upon the following terms, conditions, and covenants. Premises. For that and in consideration of the terms, conditions, covenants, promises, and agreements herein made, Lessor hereby leases and demises unto Lessee the Premises, which includes the 38,000 square foot facility located at 2200 Parks Avenue, Virginia Beach, Virginia as shown on Exhibit A attached hereto. Term. The term of this Lease shall be for a period of five (5) years, commencing on May 1, 2010, and ending at midnight on April 30, 2015. It is the intent of the parties to renew this Lease, to the extent permitted by law, as long as both parties are dedicated to preserving the artistic nature of the CONTEMPORARY ART CENTER OF VIRGINIA (the "Building") and operating an activity which enhances the cultural identity of the City of Virginia Beach. 3. Rent. The total rent for the term hereof and any renewal term hereof shall be one dollar ($1.00) per annum, which the Tenant shall pay to the City, in advance, at such place as may be designated by the City. 4. Use. The Tenant will use and occupy the Premises for purposes of enhancing the public's access to art and culture in the City of Virginia Beach. Such use and occupancy may include, without limitation, art exhibits and related special events, receptions, and meetings, art classes, the operation of gift shops and food and beverage concessions, theatre and recreational purposes, and fund-raising activities which are intended to preserve the artistic nature of an arts museum. The Building must remain open to the general public for at least 120 days per year and for at least 1,000 hours per year. The Tenant agrees to abide by, observe and comply with all federal, state, and municipal laws, ordinances and regulations applicable to its use and occupancy of the Premises and with any covenants and restrictions to which the Premises are now or may hereafter be made subject. The Tenant further agrees that it will not do or permit any act or thing or omit any act or thing which conflicts or otherwise fails to comply with the terms of any policy of insurance covering the Premises. The Tenant shall not use nor permit the Premises to be used for any purpose other than as stated in this section of the Lease without prior written consent of the City, which consent shall not be unreasonably withheld. 5. Notice. Any notice provided for or required by this Lease shall be deemed to have been delivered on the date that such notice has been personally delivered or deposited in the U.S. Mail, first class, return receipt requested, postage prepaid and addressed as follows: (A) To the City: Facilities Management Office Department of Management Services City of Virginia Beach 2424 Courthouse Drive Virginia Beach, VA 23456 (B) To the Tenant: CONTEMPORARY ART CENTER OF VIRGINIA 2200 Parks Avenue 2 Virginia Beach, VA 23451 6. Name. The official name of the Tenant's operation shall not be changed without the prior written approval of the City, which approval shall not be unreasonably withheld. 7. Signs. Tenant shall install and maintain during the term of this Lease a plaque, prominently displayed at the entrance to the building, giving recognition to the City as a principal in the ownership and establishment of the Premises. Such plaque, together with any other sign located on the Premises, shall be constructed and maintained in accordance with applicable State and local laws and shall be approved by the City, which approval shall not be unreasonably withheld. 8. Attachments. The following document is attached hereto and such document shall be incorporated herein by reference: (A) Exhibit A -Plat of Premises (B) Exhibit B - Insurance Obligations 9. Default. If, after receiving written notice from the City, the Tenant fails to complete performance within forty-five (45) days thereafter or within such additional time as may be reasonably necessary, of any covenant or agreement to be performed by the Tenant herein, or causes material damage to or neglects the Building, the City shall have the right to: (i) terminate this Lease, whereupon Tenant shall quit and surrender the Premises to the City; (ii) re-enter and repossess the Premises and lockout Tenant; and (iii) cure the breach or default at the Tenant's expenses, and all costs incurred by City in curing same shall be payable to the City on demand. The City shall retain the right to sue for damages as allowed by law and to pursue such other remedies as allowed by law or in equity. 10. Indemnification/Insurance. The City and the Tenant shall comply with the Insurance Obligations set forth on Exhibit B attached hereto. The Tenant agrees to indemnify and save the City and its agents, employees, and officials harmless against all liabilities, expenses and losses including reasonable attorneys' fees incurred by the City as a result of (a) failure by the Tenant to perform any covenant required to be performed by the Tenant hereunder; or (b) any accident, injury, death or property damage which happens in or about the leased Premises or 3 results from the condition, maintenance or operation of the leased Premises or which arises from the negligence or intentional torts of Tenant or its agents, servants or employees. The City shall not be liable for any loss, injury, death, or damage to persons or property which at any time may be suffered or sustained by the Tenant or by any person who may at any time be using, occupying or visiting the Premises or be in, on, or about the same, whether such loss, injury, death, or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of the Tenant or any occupant, visitor, or user of any portion of the Premises. The Tenant hereby waives all claims against the City for injuries to person or property in or about the Premises, from any cause arising at any time. The Tenant further agrees to defend, indemnify, and hold harmless the City, its employees, agents and volunteers from any and all liability and/or damages for injuries to persons or damage to property arising out of the acts or omissions of the Tenant, or the Tenant's agents or employees under this Lease. Notwithstanding the above, the Tenant shall not be liable for any loss, injury, death or damage to persons or property, which results from the gross negligence or intentional misconduct of the City or any of its agents, officers or employees. 11. City/Tenant Services, Maintenance, Repair and Alterations. City shall, at City cost: (A) maintain the Premises in good condition and repair, including all buildings and improvements, sidewalks, and landscaping; (B) provide payment for all water and sewer and stormwater utility costs and fees; and (C) approve in advance the acquisition or installation by the Tenant of any equipment it is expected to maintain. The grounds will be maintained by the City in a manner consistent with the municipal nature of the Premises. The City shall, upon prior notice to the Tenant, have access to the Building, at reasonable intervals during normal business hours, for purposes of inspecting or repairing the Building; however, no notice need be given in the case of an emergency. However, the City shall not unreasonably interfere with the Tenant's use of the Building. The City shall have the right to establish reasonable rules and regulations governing the use and occupancy of the Premises. The Tenant shall pay for telecommunications fees and services and utilities unless specified to be paid by the City. Additionally, the 4 Tenant shall provide written security procedures designed to reasonably protect the Building, against damage, which procedures must be approved by the City. The Tenant shall not perform any repairs upon the Premises, structural or otherwise, unless minor in nature and approval of the City is first obtained, but shall use its best efforts to maintain the Premises in a neat and orderly condition. The City shall maintain the Premises, including all buildings and improvements, sidewalks and landscaping in good repair. No alterations, improvements or additions of a permanent nature shall be made to the Premises without the prior written approval of the City, which approval shall not be unreasonably withheld. Such alterations, improvements and additions must comply with all applicable building codes, ordinances and regulations. Any such alterations, improvements or additions shall be at the sole expense of the Tenant and Tenant shall indemnify the City against any expense or damage to the Premises as a result thereof. There shall be maintained at the Tenant's sole expense, at all times when any alteration, improvement or addition is in progress, worker's compensation insurance in accordance with state law covering all persons employed in connection with any such alteration, improvement or addition, and general liability insurance for the Tenant covering the additional hazards resulting from any such alteration, improvement or addition. Upon the termination of the Lease, the Tenant shall deliver the Building to the City in good and clean condition, excepting ordinary wear and tear or loss or damages caused by fire or other casualty. 12. Furnishings. At the expiration or earlier termination of this Lease, should the Tenant fail to remove any furnishings or other personal property owned by Tenant within ten (10) days of the date of such expiration or termination, the Tenant shall be deemed to have waived all rights to any such furnishings or other personal property not so removed. 13. Fire or Casualty. Except as otherwise provided herein, in the event the Building, or improvements on the Premises or any part thereof, are damaged or destroyed by fire or other casualty, the City may elect to terminate this Lease effective as of the date of the casualty. The City is not obligated to rebuild the Premises in the event of damage or destruction by fire or other casualty. Tenant shall be responsible for the repair and restoration of all Tenant improvements at its sole cost and expense. 14. Art Collections. All collections of artwork, displayed or stored, are the responsibility of the Tenant, except as otherwise provided herein. Any modifications to this condition must be a written memorandum of understanding agreed to by both parties. 15. Assignment and Subletting. The Tenant shall not assign this Lease in whole or in part or sublease all or any part of the Premises without the prior written consent of the City. Any such sublease or assignment without consent shall be void, and shall, at the option of the City, terminate this Lease. The provisions of this paragraph shall not be applicable to any contract or agreement between the Tenant and a third party involving the temporary short-term occupancy of the Premises by such third party for (i) an art display, exhibit, forum or similar event, or (ii) the provision of ancillary services (e.g., catering) associated with any such event. This Lease is binding upon, and inures to the benefit of, the parties and their respective heirs, personal representatives, successors and assigns. 16. Surrender. Upon the expiration of earlier termination of this Lease, the Tenant shall surrender to the City the Premises in good and clean condition, ordinary wear and tear and damage by fire or other casualty excepted. 17. Severability. If any provision of this Lease or its application to any person or circumstance shall to any extent be determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Lease, or the application of such provision to persons or circumstances other than those as to which it is determined to be invalid or unenforceable, shall not be affected, and each remaining provision of this Lease shall continue to be valid and enforceable to the fullest extent permitted by law. 18. Rules and Regulations. The Tenant, will comply with all federal, state, and local laws, ordinances, and regulations (collectively, the "Laws"), relating to the business conducted on the Premises by the Tenant, and the Tenant, hereby agrees to observe and strictly comply with all reasonable rules and regulations adopted by the City from time to time with respect to the occupancy of or operations on the Premises. The City shall not be liable for the nonobservance or violation by the Tenant, or any 6 agent, employee, contractor, invitee or licensee of the Tenant, of any Laws, rules and regulations. The tenant will indemnify and hold the City and its agents, employees, and officials harmless from and against any expense or liability (including reasonable attorneys' fees) resulting from any acts /or omissions of Tenant, its agents, employees, invitees, or independent contractors that violated the Laws, rules and regulations. This provision shall survive termination of this Lease. 19. Required Approvals. All approvals required herein must be obtained in writing. The Department of Management Services/Facilities Management Office shall be responsible for administration and oversight of this Lease. 20. Non-Discrimination. During the term of this Lease, the Tenant agrees that it will not discriminate against any person, including, without limitation, any artist, exhibitor, contractor, vendor, employee or applicant for employment, on the basis of such person's race, religion, color, sex, national origin, age, disability, or any other basis prohibited by state law relating to discrimination in employment, except where there is a bona fide occupational qualification/consideration reasonably necessary to the normal operation of the Tenant. 21. Environmental Concerns. The City hereby warrants to the Tenant, that, to the best of the City's knowledge, without the requirement for independent investigation, no hazardous material such as petroleum products, asbestos and any other hazardous or toxic substance has been used, disposed or, or is located in either the Building or the soil or groundwater on or under the Premises. Any costs associated with violations of the law including, but not limited to, remediations, clean-up costs, fines, administrative or civil penalties or charges, and third party claims imposed on the City by any regulatory agency or by any third party as a result of the noncompliance with federal, state or local environmental laws and regulations or nuisance statutes by the Tenant or by its employees, contractors, consultants, subconsultants, or any other persons, corporations or legal entities retained by if for the Premises, shall be paid by the Tenant. This provision shall survive the expiration or sooner termination of this Lease. 22. Liens -Tenant's Duty to Keep Premises Free of Liens The Tenant shall keep the Premises and every part thereof and all buildings and other improvements at any time located thereon free and clear of any and all mechanics', material men, and other liens for or arising out of or in connection with work or labor done, services performed, or materials or appliances used or furnished for or in connection with any operations of the Tenant, any alteration, improvement or actions which the Tenant might make or cause to be made by any person or persons other than employees, contractors or agents of the City, on or about the Premises, and at all times promptly and fully pay and discharge any and all claims upon which such lien may or could be based, and to indemnify the City and all of the Premises and buildings and improvements thereon against all such items and claims of liens and related lawsuits. 23. Miscellaneous Provisions: Quiet Enjoyment. Subject to the provisions of this Lease and the City's remedies in the event of Tenant's default, Tenant will have and enjoy quiet and peaceable possession of the Premises during the Term. Nonwavier. No waiver of any covenant or condition by either party shall be deemed to imply or constitute a further waiver of the same covenant or condition or a waiver of any other covenant or condition of this Lease. Governing Law/Venue: This Lease shall be construed and governed by the applicable laws of the Commonwealth of Virginia. Venue of any suit brought to enforce the terms of this Lease or arising from the rights, liabilities or obligations set forth herein shall be filed in a court of competent jurisdiction in the City of Virginia Beach. Force Maieure. Neither party shall be liable to the other for any breach or violation of this Lease resulting from any occurrence or event, including any Act of God, strikes, war, lockouts, labor trouble, insurrection or occurrence beyond the reasonable control of any party hereto. Modification. This Lease shall not be modified except by a written instrument executed by the City and Tenant or their respective successors or assigns. 8 IN WITNESS WHEREOF, the City and the Tenant have duly executed this Agreement as of the date first written above. (SEAL) ATTEST: Ruth Hodge Smith City Clerk CITY OF VIRGINIA BEACH By: City Manager/Authorized Designee of the City Manager ATTEST: CONTEMPORARY ART CENTER OF VIRGINIA Corporate Secretary By: Chair, Board of Trustees CITY ACKNOWLEDGMENTS STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 2010, by ,City Manager/Authorized Designee of the City Manager, on behalf of the City of Virginia Beach, Virginia. Notary Public My commission expires: TENANT ACKNOWLEDGMENTS STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 2010, by ,Chair, Board of Trustees, and Corporate Secretary, on behalf of the CONTEMPORARY ART CENTER OF VIRGINIA, a Virginia corporation. My commission expires: Notary Public APPROVAL AS TO CONTENT: APPROVAL AS TO CONTENT: Management Services/Facilities Management Office APPROVAL AS TO CONTENT: Museums and Cultural Arts APPROVED AS TO LEGAL SUFFICIENCY: Risk Management Administrator City Attorney's Office 10 EXHIBIT "A" 11 EXHIBIT "B" INSURANCE OBLIGATIONS A. The City's Insurance Obligations. The City may at its discretion provide programs of insurance and/or self- insurance to cover physical damage to or loss of the building due to fire, flood, or other casualty. B. The Tenant's Insurance Obligations. The tenant shall, at all times during the Term at its own cost and expense, carry commercial general liability insurance on the Premises with limits of not less than $1,000,000.00 combined single limit. The Tenant shall also carry "all-risk" casualty insurance, written at replacement cost value and with replacement cost endorsement, covering all the Tenant's personal property in the Building (including, without limitation, fixtures, floor coverings, furniture, and other property removable by the Tenant under the provisions of the Lease) and all leasehold improvements installed in the Building by or on behalf of the Tenant and if, and to the extent permitted by law, worker's compensation or similar insurance. All liability insurance policies shall be written by companies authorized to conduct the business of insurance in the Commonwealth of Virginia and acceptable to the City and shall name the City as an additional named insured. Each such policy shall also contain a provision prohibiting cancellation or material modification without thirty (30) days prior written notice to the City or its designee. Certificates of such insurance shall be delivered to the City promptly after the issuance of the respective policies. If the Tenant fails to provide or maintain such liability insurance, the City may, but shall not be obligated to, do so and collect the cost thereof as Additional Rent. 12 -69- Item I.6. ORDINANCES/RESOLUTIONS ITEM# 59875 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT.• Ordinance to AUTHORIZE acquisition of right-of--way property in fee simple, by purchase or condemnation, including temporary and permanent easements for safety improvements at the intersection of Bonney Road and South Kentucky Avenue and AUTHORIZE the City Manager to make a reasonable offer to owners or persons having interest in said property Voting: I1-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None April 27, 2010 1 AN ORDINANCE TO AUTHORIZE a ACQUISITION OF PROPERTY IN FEE SIMPLE 3 FOR RIGHT-OF-WAY FOR THE SAFETY 4 IMPROVEMENTS AT THE INTERSECTION OF 5 BONNEY ROAD AND SOUTH KENTUCKY 6 AVENUE PROJECT (CIP 2-018.002) AND THE ~ ACQUISITION OF TEMPORARY AND a PERMANENT EASEMENTS, EITHER BY 9 AGREEMENT OR CONDEMNATION to 11 WHEREAS, in the opinion of the Council of the City of Virginia Beach, Virginia, a 12 public necessity exists for the construction of this important roadway improvement project 13 to improve transportation within the City and for other related public purposes for the 14 preservation of the safety, health, peace, good order, comfort, convenience, and for the 15 welfare of the people in the City of Virginia Beach. 16 17 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF la VIRGINIA BEACH, VIRGINIA: 19 ao Section 1. That the City Council authorizes the acquisition by purchase or 21 condemnation pursuant to Sections 15.2-1901, et seg., Sections 33.1-89, et sew., and Title 22 25.1 of the Code of Virginia of 1950, as amended, of all that certain real property in fee 23 simple, including temporary and permanent easements and entire tracts upon which such a4 rights of way or easements shall be located, within the limitations and conditions of Section z5 33.1-91 of the Code of Virginia of 1950, as amended (the "Property"), as shown on the z6 plans entitled "Safety Improvements at the Intersection of Bonney Road and South 27 Kentucky Avenue, CIP 2-018.002, PWCN-09-0199" (the "Project") and more specifically za described on the acquisition plats and plans for the Project (plats and plans collectively 29 referred to as the "Plans"), the Plans being on file in the Engineering Division, Department 30 of Public Works, City of Virginia Beach, Virginia. 31 32 Section 2. That the City Manager is hereby authorized to make or cause to be 33 made on behalf of the City of Virginia Beach, to the extent that funds are available, a 34 reasonable offer to the owners or persons having an interest in said Property. If refused, 35 the City Attorney is hereby authorized to institute proceedings to condemn said Property. 36 37 Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day of 3s April , 2010. PREPARED: 4/14/2010 CA 11388 R-1 \\vbgov.com\dfs 1 \applications\citylawprod\cycom32\wpdocs\d001 \p005\00045807.doc APPROVED AS TO CONTENT APPROVED AS TO LEGAL SUFFICIENCY AND FORM ~. --. C ,.. _ ( s~ P B IC WORKS/REAL ESTATE CITY AT ORNEY -~o- Item I.7. ORDINANCES/RESOLUTIONS ITEM # 59876 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinance to AUTHORIZE the City Manager to execute a Cost Participation Agreement with Hollis Road Associates, L.L.C. re construction of stormwater improvements for Indian River Road Phase VII and the Rose Glen Manor Subdivision Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None Apri127, 2010 1 ORDINANCE AUTHORIZING THE 2 EXECUTION OF A COST PARTICIPATION 3 AGREEMENT BETWEEN THE CITY AND 4 HOLLIS ROAD ASSOCIATES, L.L.C. FOR s THE CONSTRUCTION OF STORMWATER 6 IMPROVEMENTS FOR INDIAN RIVER ROAD ~ PHASE VII ROAD PROJECT (CIP 2-256) AND 8 THE ROSE GLEN MANOR SUBDIVISION 9 to WHEREAS, Hollis Road Associates, L.L.C., a Virginia limited liability company 11 ("Developer"), is the developer of the proposed subdivision to be known as Rose Glen 12 Manor (the "Subdivision") located near the intersection of Independence Boulevard and 13 Indian River Road in the City of Virginia Beach, and is required to construct a 14 stormwater management facility for the Subdivision; is 16 WHEREAS, the City is in the process of realigning, improving and extending 1~ Indian River Road pursuant to the project known as Indian River Road Phase VII 18 Project (CIP 2-256) (the "Road Project"); 19 20 WHEREAS, the Developer has requested that the City become a party in a cost 21 participation agreement whereby the Developer will construct the stormwater 22 management facility for the Subdivision with larger stormwater capacity than is required 23 so as to provide stormwater management to both the Road Project and the Subdivision; 24 2s WHEREAS, the City's requested improvements are outlined on Exhibit A, 26 attached hereto and made a part hereof (the "SWMF Improvements"); 27 28 WHEREAS, such construction of the stormwater management facility with larger 29 capacity than is required is of value to the City in providing stormwater management for 3o the Road Project presently, rather than waiting until full construction funding; and 31 32 WHEREAS, the current economical downturn has resulted in competitive bids 33 significantly lower than the engineer's estimate and the City would benefit by taking 34 advantage of the lower cost of construction today. 3s 36 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 37 VIRGINIA BEACH, VIRGINIA: 38 39 That the City Manager is hereby authorized to execute a cost participation 4o agreement between the City and Developer for construction of a stormwater 41 management facility in accordance with the Summary of Terms attached hereto as 42 Exhibit B and made a part hereof, and containing such other terms and conditions 43 deemed necessary and sufficient by the City Manager and in a form deemed 44 satisfactory by the City Attorney. 1 45 46 Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day of April , 2010. APPROVED AS TO CONTENT: ~. epartment of Public orks APPROVED AS TO LEGAL SUFFICIENCY: ~; t~ City Attorney's Office CERTIFIED AS TO AVAILABILITY OF DS: Department of Finance CA11402 \\vbgov.wm\DFS 1 \Applications\CityLawProd\cycom32\W pdocs\D014\P007\00052140. DOC R-1 April 16, 2010 2 N EXHIBIT A a \ i w _~ p \ O ZO ~ ~~~ER s -~ ~ o~vMN n~ ~~~ ~~ NGE ~~~0 O~Q~NQE ; S ~N ,,~. ;;'. >~,,,~. ROSE GLEN MANOR ~ ~ ' `~~~ '~ r ~;µ SUBDIVISION ~ O ~2 ~ .. BMP `~~ 'iL F ~^~x.• I ;';'A \~ '~I 'A,,AOA I~ • ~ ~~'A sF O 4 ,; ~~ 'L~i yti ~a Shared Stormwater Management Facility Improvements for Indian River Road Phase VII (CIP #2-256) at Rose Glen Manor Feet 0 100 200 400 F.XHiRiT R SUMMARY OF TERMS INDIAN RIVER ROAD PHASE VII (CIP 2-256) AND HOLLIS ROAD ASSOCIATES, L.L.C. COST PARTICIPATION AGREEMENT DEVELOPER: Hollis Road Associates, L.L.C. COST PARTICIPANT: City of Virginia Beach CONSTRUCTION COSTS: Payment by the City to Hollis Road Associates, L.L.C. in the amount of $183,392.71. All bonds must be posted prior to payment by the City. Payment will be made within thirty days after i) completion of the improvements in accordance with the approved plans, ii) acceptance by the City, and iii) submission by Developer of a requisition and invoices for the costs. CHANGE ORDERS: Costs associated with any Change Order will be negotiated at the time of the discovery of an unforeseen condition or at the time of any City initiated request for a change. Change Orders must be in writing and be mutually agreed upon. Change Orders may not exceed the total amount to be paid by the City by more than $71,637.78 (25% of original) without the advance written approval of City Council. SPECIAL TERMS AND CONDITIONS: Developer is required to post a performance bond, pay the standard inspection fees. Developer will perform all preliminary site work including surveying and stakeout, clearing, grading, etc. necessary for the construction of the project. Developer will construct a stormwater management facility as shown on the Indian River Road Phase VII (CIP 2-256) plans allowing the facility to function as a regional basin. Developer will construct all erosion and sediment control features necessary for the project. Once constructed, the City shall have the right to use the facility for Indian River Road Phase VII stormwater management. The City shall be responsible for inspecting the improvements and will have the permanent right to maintain flow and reasonable right of access for such inspections and maintenance. Developer, or its successors, shall be responsible for landscape maintenance and bank stabilization. -~i - Item I.8. ORDINANCES/RESOLUTIONS ITEM # 59877 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinances to AUTHORIZE acquisition of Agricultural Land Preservation (ARP) easements: a. Richard C. Cocke and Carol A. Clarke in the amount of $449,106 at 416 Princess Anne Road b. Truman D. Baxter, Jr. in the amount of $288,344 at 3457 Land of Promise Road c. Walter J., Jr. and Jennifer S. Roe in the amount of $238, 428 at 5125 Morris Neck Road Voting.• 10-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Abstaining: William R. "Bill " DeSteph Council Members Absent.• None April 27, 2010 1 AN ORDINANCE AUTHORIZING THE ACQUISITION OF AN 2 AGRICULTURAL LAND PRESERVATION EASEMENT AND 3 THE ISSUANCE BY THE CITY OF ITS CONTRACT 4 OBLIGATIONS IN THE MAXIMUM PRINCIPAL AMOUNT OF 5 $449,106 (RICHARD C. COCKE AND CAROL A. CLARKE) 6 7 WHEREAS, pursuant to the Agricultural Lands Preservation Ordinance (the 8 "Ordinance"), Appendix J of the Code of the City of Virginia Beach, there has been 9 presented to the City Council a request for approval of an Installment Purchase Agreement 10 (the form and standard provisions of which have been previously approved by the City 11 Council, a summary of the material terms of which is hereto attached, and a true copy of 12 which is on file in the City Attorney's Office) for the acquisition of the Development Rights 13 (as defined in the Installment Purchase Agreement) on certain property located in the City 14 and more fully described in Exhibit B of the Installment Purchase Agreement for a 15 purchase price of $449,106; and 16 17 WHEREAS, the aforesaid Development Rights shall be acquired through the 18 acquisition of a perpetual agricultural land preservation easement, as defined in, and in 19 compliance with, the requirements of the Ordinance; and 20 21 WHEREAS, the City Council has reviewed the proposed terms and conditions of the 22 purchase as evidenced by the Installment Purchase Agreement; 23 24 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF 25 VIRGINIA BEACH, VIRGINIA: 26 27 1. The City Council hereby determines and finds that the proposed terms and 28 conditions of the purchase of the Development Rights pursuant to the Installment Purchase 29 Agreement, including the purchase price and manner of payment, are fair and reasonable 30 and in furtherance of the purposes of the Ordinance, and the City Manager or his designee 31 is hereby authorized to approve, upon or before the execution and delivery of the 32 Installment Purchase Agreement, the rate of interest to accrue on the unpaid principal 33 balance of the purchase price set forth hereinabove as the greater of 3.4900% per annum 34 or the per annum rate which is equal to the yield on United States Treasury STRIPS 35 purchased by the City to fund such unpaid principal balance; provided, however, that such 36 rate of interest shall not exceed 6.4900% unless the approval of the City Council by 37 resolution duly adopted is first obtained. 38 39 2. The City Council hereby further determines that funding is available for the 40 acquisition of the Development Rights pursuant to the Installment Purchase Agreement on 41 the terms and conditions set forth therein. 42 43 3. The City Council hereby expressly approves the Installment Purchase 44 Agreement and, subject to the determination of the City Attorney that there are no defects 45 in title to the property or other restrictions or encumbrances thereon which may, in the 46 opinion of the City Attorney, adversely affect the City's interests, authorizes the City AGRICULTURAL RESERVE PROGRAM INSTALLMENT PURCHASE AGREEMENT N0.2009-103 SUMMARY OF MATERIAL TERMS SELLER: COCKS, Richard C. and CLARKS, Carol A. PROPERTY LOCATION: 416 Princess Anne Road, Princess Anne District PURCHASE PRICE: $449,106 EASEMENT AREA: 40.46 acres, more or less DEVELOPMENT POTENTIAL: 4single-family dwelling sites (4 acquired) DURATION: Perpetual INTEREST RATE: Equal to yield on U.S. Treasury STRIPS acquired by City to fund purchase price, but not less than 3.4900% (actual rate to be determined when STRIPS are purchased prior to execution of IPA). Rate may not exceed 6.4900% without approval of City Council. TERMS: Interest only twice per year for 25 years, with payment of principal due 25 years from IPA date RESTRICTIONS ON TRANSFER: IPA ownership may not be transferred (except for Estate Settlement Transfer) for one (1) year following execution and delivery of IPA. 0 U O U o?S 4~ V O U L C~ S V N N i U f6 O c~ O DC N a N U ~L ~:. Y, I } ~ 1 a_ y ` r X 1 h 2f~r 5` <' ~ t~ k ~~ N {~- ~ ~~w ~. ~~. J13~, y 1 4 - ~ ' ~,,__. ~ ~ Z 47 Manager or his designee to execute and deliver the Installment Purchase Agreement in 48 substantially the same form and substance as approved hereby with such minor 49 modifications, insertions, completions or omissions which do not materially alter the 50 purchase price or manner of payment, as the City Manager or his designee shall approve. 51 The City Council further directs the City Clerk to affix the seal of the City to, and attest 52 same on, the Installment Purchase Agreement. The City Council expressly authorizes the 53 incurrence of the indebtedness represented by the issuance and delivery of the Installment 54 Purchase Agreement. 55 56 4. The City Council hereby elects to issue the indebtedness under the Charter 57 of the City rather than pursuant to the Public Finance Act of 1991 and hereby constitutes 58 the indebtedness a contractual obligation bearing the full faith and credit of the City. 59 60 Adoption requires an affirmative vote of a majority of all members of the City 61 Council. 62 63 Adopted by the Council of the City of Virginia Beach, Virginia, on this 27th day of 64 ~;~ ,2010. CA11408 \\vbgov.com\DFS1 Wpplications\CityLawProd\cycom32\Wpdocs\D008\P011\00051199.DOC R-1 DATE: April 12, 2010 APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Agriculture Department City Attorney's ffice CERTIFIED AS TO AVAILABILITY OF FUNDS: r' Director of Finance 2 1 AN ORDINANCE AUTHORIZING THE ACQUISITION OF AN 2 AGRICULTURAL LAND PRESERVATION EASEMENT AND 3 THE ISSUANCE BY THE CITY OF ITS CONTRACT 4 OBLIGATIONS IN THE MAXIMUM PRINCIPAL AMOUNT OF 5 $288,344 (TRUMAN D. BAXTER, JR.) 6 7 WHEREAS, pursuant to the Agricultural Lands Preservation Ordinance (the 8 "Ordinance"), Appendix J of the Code of the City of Virginia Beach, there has been 9 presented to the City Council a request for approval of an Installment Purchase Agreement 10 (the form and standard provisions of which have been previously approved by the City 11 Council, a summary of the material terms of which is hereto attached, and a true copy of 12 which is on file in the City Attorney's Office) for the acquisition of the Development Rights 13 (as defined in the Installment Purchase Agreement) on certain property located in the City 14 and more fully described in Exhibit B of the Installment Purchase Agreement for a 15 purchase price of $288,344; and 16 17 WHEREAS, the aforesaid Development Rights shall be acquired through the 18 acquisition of a perpetual agricultural land preservation easement, as defined in, and in 19 compliance with, the requirements of the Ordinance; and 20 21 WHEREAS, the City Council has reviewed the proposed terms and conditions of the 22 purchase as evidenced by the Installment Purchase Agreement; 23 24 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF 25 VIRGINIA BEACH, VIRGINIA: 26 27 1. The City Council hereby determines and finds that the proposed terms and 28 conditions of the purchase of the Development Rights pursuant to the Installment Purchase 29 Agreement, including the purchase price and manner of payment, are fair and reasonable 30 and in furtherance of the purposes of the Ordinance, and the City Manager or his designee 31 is hereby authorized to approve, upon or before the execution and delivery of the 32 Installment Purchase Agreement, the rate of interest to accrue on the unpaid principal 33 balance of the purchase price set forth hereinabove as the greater of 3.4600% per annum 34 or the per annum rate which is equal to the yield on United States Treasury STRIPS 35 purchased by the City to fund such unpaid principal balance; provided, however, that such 36 rate of interest shall not exceed 6.4600% unless the approval of the City Council by 37 resolution duly adopted is first obtained. 38 39 2. The City Council hereby further determines that funding is available for the 40 acquisition of the Development Rights pursuant to the Installment Purchase Agreement on 41 the terms and conditions set forth therein. 42 43 3. The City Council hereby expressly approves the Installment Purchase 44 Agreement and, subject to the determination of the City Attorney that there are no defects 45 in title to the property or other restrictions or encumbrances thereon which may, in the 46 opinion of the City Attorney, adversely affect the City's interests, authorizes the City 47 Manager or his designee to execute and deliver the Installment Purchase Agreement in 48 substantially the same form and substance as approved hereby with such minor 49 modifications, insertions, completions or omissions which do not materially alter the 50 purchase price or manner of payment, as the City Manager or his designee shall approve. 51 The City Council further directs the City Clerk to affix the seal of the City to, and attest 52 same on, the Installment Purchase Agreement. The City Council expressly authorizes the 53 incurrence of the indebtedness represented by the issuance and delivery of the Installment 54 Purchase Agreement. 55 56 4. The City Council hereby elects to issue the indebtedness under the Charter 57 of the City rather than pursuant to the Public Finance Act of 1991 and hereby constitutes 58 the indebtedness a contractual obligation bearing the full faith and credit of the City. 59 60 Adoption requires an affirmative vote of a majority of all members of the City 61 Council. 62 63 Adopted by the Council of the City of Virginia Beach, Virginia, on this 77~h day of 64 April , 2010. CA11407 \\vbgov.com\DFS1 \Applications\CityLawProd\cycom32lWpdocs\D008\P011 \00051179. DOC R-1 DATE: April 12, 2010 APPROVED AS TO CONTENT: 0~~ Agriculture Department APPROVED AS TO LEGAL SUFFICIENCY: lM l,~l~~ --- 4 City Attorney's Office CERTIFIED AS TO AVAILABILITY OF FUNDS: .. Director of Finance 2 AGRICULTURAL RESERVE PROGRAM INSTALLMENT PURCHASE AGREEMENT N0.2009-96 SUMMARY OF MATERIAL TERMS SELLER: BAXTER, Jr. Truman D. PROPERTY LOCATION: 3457 Land of Promise Road, Princess Anne District PURCHASE PRICE: $288,344 EASEMENT AREA: 37.94 acres, more or less DEVELOPMENT POTENTIAL: 3single-family dwelling sites (3 acquired) DURATION: Perpetual INTEREST RATE: Equal to yield on U.S. Treasury STRIPS acquired by City to fund purchase price, but not less than 3.4600% (actual rate to be determined when STRIPS are purchased prior to execution of IPA). Rate may not exceed 6.4600% without approval of City Council. TERMS: Interest only twice per year for 25 years, with payment of principal due 25 years from IPA date RESTRICTIONS ON TRANSFER: IPA ownership may not be transferred (except for Estate Settlement Transfer) for one (1) year following execution and delivery of IPA. a~ a 0 ^L I..L L X W L ^/1 W U CC5 d' ti M '~ O .~ O y-- O Ctf J a~aadasay~ ~o ~~i~ 1 AN ORDINANCE AUTHORIZING THE ACQUISITION OF AN 2 AGRICULTURAL LAND PRESERVATION EASEMENT AND 3 THE ISSUANCE BY THE CITY OF ITS CONTRACT 4 OBLIGATIONS IN THE MAXIMUM PRINCIPAL AMOUNT OF 5 $238,428 (WALTER J. ROE, JR. AND JENNIFER S. ROE) 6 7 WHEREAS, pursuant to the Agricultural Lands Preservation Ordinance (the 8 "Ordinance"), Appendix J of the Code of the City of Virginia Beach, there has been 9 presented to the City Council a request for approval of an Installment Purchase Agreement 10 (the form and standard provisions of which have been previously approved by the City 11 Council, a summary of the material terms of which is hereto attached, and a true copy of 12 which is on file in the City Attorney's Office) for the acquisition of the Development Rights 13 (as defined in the Installment Purchase Agreement) on certain property located in the City 14 and more .fully described in Exhibit B of the Installment Purchase Agreement for a 15 purchase price of $238,428; and 16 17 WHEREAS, the aforesaid Development Rights shall be acquired through the 18 acquisition of a perpetual agricultural land preservation easement, as defined in, and in 19 compliance with, the requirements of the Ordinance; and 20 21 WHEREAS, the City Council has reviewed the proposed terms and conditions of the 22 purchase as evidenced by the Installment Purchase Agreement; 23 24 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF 25 VIRGINIA BEACH, VIRGINIA: 26 27 1. The City Council hereby determines and finds that the proposed terms and 28 conditions of the purchase of the Development Rights pursuant to the Installment Purchase 29 Agreement, including the purchase price and manner of payment, are fair and reasonable 30 and in furtherance of the purposes of the Ordinance, and the City Manager or his designee 31 is hereby authorized to approve, upon or before the execution and delivery of the 32 Installment Purchase Agreement, the rate of interest to accrue on the unpaid principal 33 balance of the purchase price set forth hereinabove as the greater of 3.4900% per annum 34 or the per annum rate which is equal to the yield on United States Treasury STRIPS 35 purchased by the City to fund such unpaid principal balance; provided, however, that such 36 rate of interest shall not exceed 6.4900% unless the approval of the City Council by 37 resolution duly adopted is first obtained. 38 39 2. The City Council hereby further determines that funding is available for the 40 acquisition of the Development Rights pursuant to the Installment Purchase Agreement on 41 the terms and conditions set forth therein. 42 43 3. The City Council hereby expressly approves the Installment Purchase 44 Agreement and, subject to the determination of the City Attorney that there are no defects 45 in title to the property or other restrictions or encumbrances thereon which may, in the 46 opinion of the City Attorney, adversely affect the City's interests, authorizes the City 47 Manager or his designee to execute and deliver the Installment Purchase Agreement in 48 substantially the same form and substance as approved hereby with such minor 49 modifications, insertions, completions or omissions which do not materially alter the 50 purchase price or manner of payment, as the City Manager or his designee shall approve. 51 The City Council further directs the City Clerk to affix the seal of the City to, and attest 52 same on, the Installment Purchase Agreement. The City Council expressly authorizes the 53 incurrence of the indebtedness represented by the issuance and delivery of the Installment 54 Purchase Agreement. 55 56 4. The City Council hereby elects to issue the indebtedness under the Charter 57 of the City rather than pursuant to the Public Finance Act of 1991 and hereby constitutes 58 the indebtedness a contractual obligation bearing the full faith and credit of the City. 59 60 Adoption requires an affirmative vote of a majority of all members of the City 61 Council. 62 63 Adopted by the Council of the City of Virginia Beach, Virginia, on this 27th day of 64 April , 2010. CA11406 \\vbgov.com\DFS 1 Wpplications\CityLawProd\cycom32\Wpdocs\D008\P011 \00051174. DOC R-1 DATE: April 12, 2010 APPROVED AS TO CONTENT /~~,~~, Agriculture Department APPROVED AS TO LEGAL SUFFICIENCY: L..I~tG~~.~~ G1'~~2~ Div City Attorney's Office CERTIFIED AS TO AVAILABILITY OF FUNDS: r r Director of finance 2 AGRICULTURAL RESERVE PROGRAM INSTALLMENT PURCHASE AGREEMENT N0.2009-102 SUMMARY OF MATERIAL TERMS SELLER: ROE, Jr. Walter J. and ROE, Jennifer S. PROPERTY LOCATION: 5125 Morris Neck Road, Princess Anne District PURCHASE PRICE: $238,428 EASEMENT AREA: 32.22 acres, more or less DEVELOPMENT POTENTIAL: 3single-family dwelling sites (2 acquired) DURATION: Perpetual INTEREST RATE: Equal to yield on U.S. Treasury STRIPS acquired by City to fund purchase price, but not less than 3.4900% (actual rate to be determined when STRIPS are purchased prior to execution of IPA). Rate may not exceed 6.4900% without approval of City Council. TERMS: Interest only twice per year for 25 years, with payment of principal due 25 years from IPA date RESTRICTIONS ON TRANSFER: IPA ownership may not be transferred (except for Estate Settlement Transfer) for one (1) year following execution and delivery of IPA. +, ~ ^ W ~ ~ V (~ C~ ~ ~ N N 4~ O • cv ~ M ~ ~ c~ .. ~ O ~ OC CU ~ ~ V ~ 4~ ~ z ~ N ._ a~ -~ o ~o g -72- Item J.9. ORDINANCES/RESOLUTIONS ITEM # 59878 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinance to AUTHORIZE a temporary encroachment into a portion of City-owned property for Wolfgang J. and Terri J. Bay to construct and maintain a bulkhead at 2404 Windward Shore Drive The following conditions shall be required: 1. It is expressly understood and agreed that the Temporary Encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach and in accordance with the City's specifications and approval. 2. Providing however, nothing herein shall prohibit the City from immediately removing, or ordering the Grantee to remove, all or any part of the Temporary Encroachment from the Encroachment Area in the event of an emergency or public necessity and Grantee shall bear all costs and expenses of such removal. 3. It is further expressly understood and agreed that the Temporary Encroachment herein authorized terminates upon notice by the City to the Grantee and that within thirty (30) days after the notice is given, the Temporary Encroachment must be removed from the Encroachment Area by the Grantee and that the Grantee will bear all costs and expenses of such removal. 4. It is further expressly understood and agreed that the Grantee shall indemn~, hold harmless and defend the City, its agents and employees, from and against all claims, damages, losses and expenses, including reasonable attorney's fees, in case it shall be necessary to file or defend an action arising out of the construction, location or existence of the Temporary Encroachment. S. It is further expressly understood and agreed that nothing herein contained shall be construed to enlarge the permission and authority to permit the maintenance or construction of any encroachment other than that specified herein and to the limited extent specified herein nor to permit the maintenance and construction of any encroachment by anyone other than the Grantee. 6. It is further expressly understood and agreed that the Grantee agrees to maintain the Temporary Encroachment so as not to become unsightly or a hazard. It is further expressly understood and agreed that the Grantee must obtain a permit from the Department of Planning prior to commencing any construction within the Encroachment Area (the "Permit "). April 27, 2010 - 73 - Item J.9. ORDINANCES/RESOLUTIONS ITEM # 59878 (Continued) 8. It is understood and agreed the Grantee shall make a FIVE HUNDRED AND THIRTEEN DOLLAR ($513.00) payment, payable to the City Treasurer, to the Department of Planning as compensation in lieu of the typically required fifteen (1 S) feet of riparian buffer area required as a standard condition of the City, which cannot be established on the Grantee's property. Said payment will be used to restore buffer areas on other City owned property. 9. It is further expressly understood and agreed that the Grantee must obtain and keep in force all- risk property insurance and general liability or such insurance as is deemed necessary by the City and all insurance policies must name the City as additional named insured or loss payee, as applicable. The Grantee also agrees to carry comprehensive general liability insurance in an amount not less than $500, 000.00, combined single limits of such insurance policy or policies. The Grantee will provide endorsements providing at least thirty (30) days written notice to the City prior to the cancellation or termination of, or material change to, any of the insurance policies. The Grantee assumes all responsibilities and liabilities, vested or contingent, with relation to the construction, location and/or existence of the Temporary Encroachment. 10. It is further expressly understood and agreed that the Temporary Encroachment must conform to the minimum setback requirements as established by the City. I1. It is further expressly understood and agreed that the City, upon revocation of such authority and permission so granted, may remove the Temporary Encroachment and charge the cost thereof to the Grantee and collect the cost in any manner provided by law for the collection of local or state taxes, may require the Grantee to remove the Temporary Encroachment and pending such removal, the City may charge the Grantee for the use of the Encroachment Area, the equivalent of what would be the real property tax upon the land so occupied if it were owned by the Grantee and if such removal shall not be made within the time ordered hereinabove by this Agreement, the City may impose a penalty in the sum of One Hundred Dollars ($100.00) per day for each and every day that the Temporary Encroachment is allowed to continue thereafter and may collect such compensation and penalties in any manner provided by law for the collection of local or state taxes. Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, Diezel, Robert M. Dyer, Barbara M. Mayor William D. Sessoms, Jr., John E. Wood Council Members Voting Nay: None Council Members Absent: None William R. "Bill " DeSteph, Harry E. Henley, Vice Mayor Louis R. Jones, Uhrin, Rosemary Wilson and James L. April27, 2010 1 Requested by Department of Public Works 2 3 AN ORDINANCE TO AUTHORIZE 4 TEMPORARY ENCROACHMENTS 5 INTO A PORTION OF CITY 6 PROPERTY KNOWN AS ISLAND LAKE ~ LOCATED AT THE REAR OF 2404 8 WINDWARD SHORE DRIVE FOR 9 PROPERTY OWNERS WOLFGANG J. to BAY AND TERRI J. BAY 11 12 WHEREAS, Wolfgang J. Bay and Terri J. Bay desire to construct and maintain a 13 bulkhead upon the City's property known as Island Lake located at the rear of 2404 14 Windward Shore Drive, in the City of Virginia Beach, Virginia; and 15 16 WHEREAS, City Council is authorized pursuant to §§ 15.2-2009 and 15.2-2107, 17 Code of Virginia, 1950, as amended, to authorize temporary encroachments upon the is City's property subject to such terms and conditions as Council may prescribe. 19 20 NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 21 VIRGINIA BEACH, VIRGINIA: 22 That pursuant to the authority and to the extent thereof contained in §§ 15.2- 23 2009 and 15.2-2107, Code of Virginia, 1950, as amended, Wolfgang J. Bay and Terri J. 24 Bay, their heirs, assigns and successors in title are authorized to construct and maintain 25 a temporary encroachment for a bulkhead in the City's property known as Island Lake 26 as shown on the map marked Exhibit "A" and entitled: "ENCROACHMENT REQUEST - 27 "EXHIBIT A" BULKHEAD FOR WOLFGANG BAY LOT 42 BAY ISLAND SECTION 1 2s (M.B. 45 PG. 37) DATE: JANUARY 15, 2010, SHEET 1 OF 1," a copy of which is on file 29 in the Department of Public Works and to which reference is made for a more particular 3 o description; and 31 32 BE IT FURTHER ORDAINED, that the temporary encroachments are expressly 33 subject to those terms, conditions and criteria contained in the Agreement between the 34 City of Virginia Beach and Wolfgang J. Bay and Terri J. Bay (the "Agreement"), which is 35 attached hereto and incorporated by reference; and 36 37 BE IT FURTHER ORDAINED, that the City Manager or his authorized designee 3 s is hereby authorized to execute the Agreement; and 39 4o BE IT FURTHER ORDAINED, that this Ordinance shall not be in effect until such 41 time as Wolfgang J. Bay and Terri J. Bay and the City Manager or his authorized 42 designee execute the Agreement. 43 44 Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day 45 of April .2010. CA-11233 X:\OID\REAL ESTATE1Encroachments\PW Ordinances\CA11233 Bay Ordiance.doc V:\Applications\CitylawProdlcycom32\W pdocs\D011 \P007\00044012. DOC R-1 PREPARED: 3/31 /2010 APPROVED AS TO CONTENTS P~J~'LIC WORKS, DEAL ES APPROVED AS TO LEGAL SUFFICIENCY AND FORM RMEYER, ASSISTANT CITY ATTORNEY PREPARED BY VIRGINIA BEACH CITY ATTORNEY'S OFFICE (BOX 31) EXEMPTED FROM RECORDATION TAXES UNDER SECTION 58.1-811(C) (4) +h THIS AGREEMENT, made this ~~ day of /4~~-~K'~. ~/ , 2010, by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation of the Commonwealth of Virginia, Grantor, "City", and WOLFGANG J. BAY and TERRI J. BAY, husband and wife, THEIR HEIRS, ASSIGNS AND SUCCESSORS IN TITLE, "Grantee", even though more than one. WITNESSETH: That, WHEREAS, the Grantee is the owner of that certain lot, tract, or parcel of land designated and described as "Lot 42, Section One, Bay Island" as shown on that certain plat entitled: "SUBDIVISION OF BAY ISLAND SECTION ONE PRINCESS ANNE CO., VA. LYNNHAVEN MAGISTERIAL DISTRICT Scale: 1"= 100', FEBRUARY, 1958, prepared by FRANK D. TARRALL, JR. & ASSOCIATES SURVEYORS & ENGINEERS," and said plat is recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Map Book 45, at page 37, and being further designated, known, and described as 2404 Windward Shore Drive, Virginia Beach, Virginia 23451; WHEREAS, it is proposed by the Grantee to construct and maintain a bulkhead, the "Temporary Encroachment", in the City of Virginia Beach; WHEREAS, in constructing and maintaining the Temporary Encroachment, it is necessary that the Grantee encroach into a portion of an existing City property known as Island Lake the "Encroachment Area"; and G PI N : 1499-98-5533-0000 WHEREAS, the Grantee has requested that the City permit the Temporary Encroachment within the Encroachment Area. NOW, THEREFORE, for and in consideration of the premises and of the benefits accruing or to accrue to the Grantee and for the further consideration of One Dollar ($1.00), cash in hand paid to the City, receipt of which is hereby acknowledged, the City hereby grants to the Grantee permission to use the Encroachment Area for the purpose of constructing and maintaining the Temporary Encroachment. It is expressly understood and agreed that the Temporary Encroachment will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach, and in accordance with the City's specifications and approval and is more particularly described as follows, to wit: A Temporary Encroachment into the Encroachment Area as shown on that certain plat entitled: "ENCROACHMENT REQUEST - "EXHIBIT A" BULKHEAD FOR WOLFGANG BAY LOT 42 BAY ISLAND SECTION 1 (M.B. 45 PG. 37) DATE: JANUARY 15, 2010, SHEET 1 OF 1," a copy of which is attached hereto as Exhibit "A" and to which reference is made for a more particular description. Providing however, nothing herein shall prohibit the City from immediately removing, or ordering the Grantee to remove, all or any part of the Temporary Encroachment from the Encroachment Area in the event of an emergency or public necessity, and Grantee shall bear all costs and expenses of such removal. It is further expressly understood and agreed that the Temporary Encroachment herein authorized terminates upon notice by the City to the Grantee, and that within thirty (30) days after the notice is given, the Temporary Encroachment must be removed from the Encroachment Area by the Grantee; and that the Grantee will bear all costs and expenses of such removal. 2 It is further expressly understood and agreed that the Grantee shall indemnify, hold harmless, and defend the City, its agents and employees, from and against all claims, damages, losses and expenses, including reasonable attorney's fees, in case it shall be necessary to file or defend an action arising out of the construction, location or existence of the Temporary Encroachment. It is further expressly understood and agreed that nothing herein contained shall be construed to enlarge the permission and authority to permit the maintenance or construction of any encroachment other than that specified herein and to the limited extent specified herein, nor to permit the maintenance and construction of any encroachment by anyone other than the Grantee. It is further expressly understood and agreed that the Grantee agrees to maintain the Temporary Encroachment so as not to become unsightly or a hazard. It is further expressly understood and agreed that the Grantee must obtain a permit from the Department of Planning prior to commencing any construction within the Encroachment Area (the "Permit") It is understood and agreed the Grantee shall make a FIVE HUNDRED AND THIRTEEN DOLLAR ($513.00) payment, payable to the City Treasurer, to the Department of Planning as compensation in lieu of the typically required 15 feet of riparian buffer area required as a standard condition of the City, which cannot be established on the Grantee's property. Said payment will be used to restore buffer areas on other City owned property. It is further expressly understood and agreed that the Grantee must obtain and keep in force all-risk property insurance and general liability or such insurance as is deemed necessary by the City, and all insurance policies must name the City as 3 additional named insured or loss payee, as applicable. The Grantee also agrees to carry comprehensive general liability insurance in an amount not less than $500,000.00, combined single limits of such insurance policy or policies. The Grantee will provide endorsements providing at least thirty (30) days written notice to the City prior to the cancellation or termination of, or material change to, any of the insurance policies. The Grantee assumes all responsibilities and liabilities, vested or contingent, with relation to the construction, location, and/or existence of the Temporary Encroachment. It is further expressly understood and agreed that the Temporary Encroachment must conform to the minimum setback requirements, as established by the City. It is further expressly understood and agreed that the City, upon revocation of such authority and permission so granted, may remove the Temporary Encroachment and charge the cost thereof to the Grantee, and collect the cost in any manner provided by law for the collection of local or state taxes; may require the Grantee to remove the Temporary Encroachment; and pending such removal, the City may charge the Grantee for the use of the Encroachment Area, the equivalent of what would be the real property tax upon the land so occupied if it were owned by the Grantee; and if such removal shall not be made within the time ordered hereinabove by this Agreement, the City may impose a penalty in the sum of One Hundred Dollars ($100.00) per day for each and every day that the Temporary Encroachment is allowed to continue thereafter, and may collect such compensation and penalties in any manner provided by law for the collection of local or state taxes. IN WITNESS WHEREOF, WOLFGANG J. BAY and TERRI J. BAY, the said Grantee, have caused this Agreement to be executed by their signatures. Further, 4 that the City of Virginia Beach has caused this Agreement to be executed in its name and on its behalf by its City Manager and its seal be hereunto affixed and attested by its City Clerk. (THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK) 5 CITY OF VIRGINIA BEACH By (SEAL) City Manager/Authorized Designee of the City Manager STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of 2010, by ,CITY MANAGER/AUTHORIZED DESIGNEE OF THE CITY MANAGER OF THE CITY OF VIRGINIA BEACH, VIRGINIA, on its behalf. He/She is personally known to me. Notary Public Notary Registration Number: My Commission Expires: (SEAL) ATTEST: City Clerk/Authorized Designee of the City Clerk STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: (SEAL) The foregoing instrument was acknowledged before me this day of 2010, by ,CITY CLERK/AUTHORIZED DESIGNEE OF THE CITY CLERK OF THE CITY OF VIRGINIA BEACH, VIRGINIA, on its behalf. She is personally known to me. Notary Public Notary Registration Number: My Commission Expires: (SEAL) 6 STATE OF VIRGI I CITY/COUNTY OF ~ ~' ' 1 ~ ~ , to-wit: Q ~h The foregoing instrument was acknowledged before me this ~ I day of ~~ ~„~~ 1n._ , 2010, by Wolfgang J. Bay. (SEAL) Notary Registration Number: ~ ~3~ ~ ~~ My Commission Expires: ~~ ~a~ `~ Public ,w- v ~~''~JPo,.NW ~~••~~9~~, ~:p8-31-11 p; i~ T ,,,~~~pT .........• J~v,,s ''~.,q RY P _,~,~ STATE OF vIRGIrrI CITY/COUNTY OF i r 1 ~ , to-wit: (~ ~h The foregoing instrument was acknowledged before me this l 1 day of Gr~~ , 2010, by Terri J. Bay. ti (SEAL) u~uwNw Not u is ,~~~~~~~~ w,,,H~~ raa``,``~~P, WESq, y~9 ~y~., ~-- ` ~ ~ •~Expires ~.y C~ Notary Registration Number: ~~~~~)~ ~ O;' •. .c cam- ~ . C7 ~3p#11 O My Commission Expires: G 1 ~~ ~ ~ „~,5 ' U ••....... v .~ 7 ~~ ~~=~, ~- Wolfga J. Bay APPROVED. AS TO CONTENTS ~9~; Get S ATURE DEPARTMENT APPROVED AS TO LEGAL SUFFICIENCY AND FORM ANA R. ARMEYER, ASSISTANT CITY ATTORNEY 8 APO 2 CITY OF VIRGINIA BEACH ~~ PROPOSED ~ 28 LF VINYL BULKHE~4D PTS. A-B: INSTALL IN-UNE PT'S. B-D: {NSTALL 2' CHANNELWARD SF OF WETLANDS IMPACTED = 0 A APO 1 N/F ROBERT CUNNINGHAM 2408 WINDWARD SHORE DR. GPIN: 1499 98 4429 w n 'a m n n N .~- N BUFFER ® 350 SF (1) RIVER BIRCH (CANOPY) (2) RED BUDS (UNDERSTORY) (3) BLACK EYED SUSANS ® 510 SF (2) RIVER BIRCH (CANOPY) (4) RED BUDS (UNDERSTORY) (6) BLACK EYED SUSANS BUFFER MULCH SHALL BE PINE STRAW BUFFER SHALL BE ESTABLISHED DURING FALL, WINTER OR SPRING ~ REVISED: 3/29/10 GPIN: 1499 98 5533 ZONING: R20 APO'S: 1. R. CUNNINGHAM 2. CITY OF VIRGINIA BEACH 3. D. JACKSON ENGINEERING SERVICES PROVIDED BY: PROFESSIONAL CONSTRUCTION CONSULTANTS, LLC. PHONE: (757) 773-8084 EMAIL: RIGKOPCC-LLC.COM EX. POOL ~• ~ 12" D • Z IX N -oc. oec~ P~oaa~i rn y ~ N V: O 2 STY. BR. & FR. f #2404 EX. TREES . •. OO~IC.~DRIVEIVAY DECIDUOUS = D • EVERGREEN E . a R=1334. 70~ -~ A=130.00' 160' TO WINDWARD SHORE DRNE (50' R/1W) CLIPPER LANE SCALE: 1 "=40' ENCROACHMENT REQUEST - "EXHIBIT A" BULKHEAD FOR WOLFGANG BAY LOT 42 BAY ISLAND SECTION 1 (M.B. 45 PG. 37) JANUARY 15, 2010 SHEET 1 OF 1 o s 7rso'3o• w 12" D . 0 103.07' 3.12" D • 12" D N k- ~r S TIMBER BULKHEAD TO REMAIN POIN15 'B' TO 'D', ~ REMOVED POINiS A' TO •8' MHW AND MLW p EX. BULKHEAD s TIE-IN TO EX. BULKHEAD OF D. A`i W i JACKSON O Pf. D 5 rw 1D ~ D EX. SHRUBS APO 3 N/F DANA JACKSON 2400 WINDWARD SHORE DR. GPIN: 1499 98 6630 -74- Item J.10. a. ORDINANCES/RESOLUTIONS ITEM# 59879 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED, BY CONSENT, until the City Council Session of May 11, 2010: Ordinances to EXEMPT certain organizations from Personal Property Taxes: a.. The Organization Against Injustice and Social Malpractice (1'OAISt11) Voting.• 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April 27, 2010 -~s- Item J.10. b. c. ORDINANCES/RESOLUTIONS ITEM # 59880 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT.• Ordinances to EXEMPT certain organizations from Personal Property Taxes: b. Life in Christ Ministries, Inc. c. Hampton Roads Community Care, Inc Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April27, 2010 1 AN ORDINANCE TO DESIGNATE LIFE IN CHRIST 2 MINISTRIES, INC. AS BEING EXEMPT FROM LOCAL 3 PERSONAL PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of 6 the City of Virginia Beach has advertised and conducted a public hearing on the issue of 7 granting an exemption from local personal property taxes to Life in Christ Ministries, Inc. 8 9 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 10 VIRGINIA BEACH, VIRGINIA: 11 12 1. That the Council of the City of Virginia Beach, Virginia, hereby designates Life in 13 Christ Ministries, Inc. as a charitable organization within the context of § 6(a)(6) of Article X 14 of the Constitution of Virginia. 15 16 2. That personal property owned by Life in Christ Ministries, Inc. located within the 17 City of Virginia Beach that is used exclusively for charitable purposes on a nonprofit basis 18 is hereby exempt from local property taxation. 19 20 3. This exemption is contingent on the following: 21 22 (a) continued use of the property owned by Life in Christ Ministries, Inc. for 23 exclusively charitable purposes; 24 25 (b) that each July 1, Life in Christ Ministries, Inc. shall file with the Commissioner 26 of the Revenue a copy of its most recent federal income tax return, or, if no 27 such return is required, it shall certify its continuing tax exempt status to the 28 Commissioner of the Revenue; 29 (c) that every three years, beginning on July 1, 2013, Life in Christ Ministries, 30 Inc. shall file an exemption application with the Commissioner of the 31 Revenue as a requirement for retention of the exempt status of the property; 32 and 33 34 (d) that Life in Christ Ministries, Inc. cooperate fully with the Commissioner of the 35 Revenue with respect to audit of its financial records, compliance with the 36 terms of this ordinance. 37 38 4. That the effective date of this exemption shall be January 1, 2011. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day of April , 2010. Requires an affirmative vote of three-fourths of the members of the City Council. APPROVED AS TO CONTENT: . . Commissioner of Revenue CA11483 R-1 March 24, 2010 APPROVED AS TO LEGAL SUFFICIENCY: ity ney's Office ENTITY NAME Life in Christ Ministries Inc. 3700 Summer Place (office use only) Virginia Beach, VA 23453 Website httLa,'«rww.lifeinchrist7ninistries.ors%index.html SUMMARY OF NONPROFIT BUSINESS ACTIVITY Life in Christ Ministries Inc. is a group of volunteers dedicated to helping the citizens of Virginia Beach. They actively solicit donations in the form of clothing, blankets, school supplies and food to help the local homeless population, nursing homes, and schools. Over the past year, the organization has made monthly visits to several nursing homes to spread the love of Christ and distribute needed items. In 2009, they donated school supplies and eight children's coats to Rosemount Elementary School. TAX IMPACT Business Property: Assessment: $120.00 Tax: $1.78 Personal Property Assessment: None Tax None Real Property Assessment:. None Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status -June 24, 2006 1 AN ORDINANCE TO DESIGNATE HAMPTON ROADS 2 COMMUNITY CARE, INC. AS BEING EXEMPT FROM 3 LOCAL PERSONAL PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of 6 the City of Virginia Beach has advertised and conducted a public hearing on the issue of 7 granting an exemption from local personal property taxes to Hampton Roads Community 8 Care, Inc. 9 10 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 11 VIRGINIA BEACH, VIRGINIA: 12 13 1. That the Council of the City of Virginia Beach, Virginia, hereby designates 14 Hampton Roads Community Care, Inc. as a charitable organization within the context of § 15 6(a)(6) of Article X of the Constitution of Virginia. 16 17 2. That personal property owned by Hampton Roads Community Care, Inc. located 18 within the City of Virginia Beach that is used exclusively for charitable purposes on a 19 nonprofit basis is hereby exempt from local property taxation. 20 21 3. This exemption is contingent on the following: 22 23 (a) continued use of the property owned by Hampton Roads Community Care, 24 Inc. for exclusively charitable purposes; 25 26 (b) that each July 1, Hampton Roads Community Care, Inc. shall file with the 27 Commissioner of the Revenue a copy of its most recent federal income tax 28 return, or, if no such return is required, it shall certify its continuing tax 29 exempt status to the Commissioner of the Revenue; 30 (c) that every three years, beginning on July 1, 2013, Hampton Roads 31 Community Care, Inc. shall file an exemption application with the 32 Commissioner of the Revenue as a requirement for retention of the exempt 33 status of the property; and 34 35 (d) that Hampton Roads Community Care, Inc. cooperate fully with the 36 Commissioner of the Revenue with respect to audit of its financial records, 37 compliance with the terms of this ordinance. 38 39 4. That the effective date of this exemption shall be January 1, 2011. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day of April , 2010. Requires an affirmative vote ofthree-fourths of the members of the City Council. APPROVED AS TO CONTENT: Commissioner of t Revenue CA11484 R-1 March 24, 2010 APPROVED AS TO LEGAL SUFFICIENCY: i y ney s ffice ENTITY NAME Hampton Roads Community Care Inc. T/A Wave City Cares 2610 Potters Rd (office use only) Virginia Beach, VA 23452 Website ht~~://~~%w~w.~~~avechurch.con~/ SUMMARY OF NONPROFIT BUSINESS ACTIVITY Wave City Care is an organization dedicated to improving the lives of individuals and families in Hampton Roads accomplished through Basic Care Food distribution, running a Soup Kitchen, Clothes Closet, Educational Services (Tutoring and Mentoring), and Health and Human Services. This organization is an initiative of Wave Church. In 2009, they distributed food to 445 households, served 4761 hot meals at local soup kitchens and distributed 3274 boxes of food for Angel Food Ministries. They also provided educational services by mentoring after school, and hosted a back to school program at Atlantis apartments where they provided schools supplies for 1000 students. TAX IMPACT Business Property: Assessment: $232.00 Tax: $8.58 Personal Property Assessment: $5775.00 Tax $64.10 Real Property Assessment: None Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status -September 13, 2002 -76- Item J.10. cb ORDINANCES/RESOLUTIONS ITEM # 59881 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT: Ordinance to EXEMPT certain organizations from Personal Property Taxes: d. Chesapeake Bay Wine Classic Foundation Voting: 10-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Abstaining: William R. "Bill "DeSteph Council Members Absent: None Councilman DeSteph ABSTAINED as he is a member of the Board of Directors. April 27, 2010 1 AN ORDINANCE TO DESIGNATE CHESAPEAKE BAY 2 WINE CLASSIC FOUNDATION AS BEING EXEMPT 3 FROM LOCAL PERSONAL PROPERTY TAXATION 4 5 WHEREAS, in accordance with § 58.1-3651 of the Code of Virginia, the Council of 6 the City of Virginia Beach has advertised and conducted a public hearing on the issue of 7 granting an exemption from local personal property taxes to Chesapeake Bay Wine Classic 8 Foundation. 9 10 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 11 VIRGINIA BEACH, VIRGINIA: 12 13 1. That the Council of the City of Virginia Beach, Virginia, hereby designates 14 Chesapeake Bay Wine Classic Foundation as a charitable organization within the context 15 of § 6(a)(6) of Article X of the Constitution of Virginia. 16 17 2. That personal property owned by Chesapeake Bay Wine Classic Foundation 18 located within the City of Virginia Beach that is used exclusively for charitable purposes on 19 a nonprofit basis is hereby exempt from local property taxation. 20 21 3. This exemption is contingent on the following: 22 23 (a) continued use of the property owned by Chesapeake Bay Wine Classic 24 Foundation for exclusively charitable purposes; 25 26 (b) that each July 1, Chesapeake Bay Wine Classic Foundation shall file with the 27 Commissioner of the Revenue a copy of its most recent federal income tax 28 return, or, if no such return is required, it shall certify its continuing tax 29 exempt status to the Commissioner of the Revenue; 30 (c) that every three years, beginning on July 1, 2013, Chesapeake Bay Wine 31 Classic Foundation shall file an exemption application with the Commissioner 32 of the Revenue as a requirement for retention of the exempt status of the 33 property; and 34 35 (d) that Chesapeake Bay Wine Classic Foundation cooperate fully with the 36 Commissioner of the Revenue with respect to audit of its financial records, 37 compliance with the terms of this ordinance. 38 39 4. That the effective date of this exemption shall be January 1, 2011. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day of Apr, 1 2010• Requires an affirmative vote ofthree-fourths of the members of the City Council. APPROVED AS TO CONTENT: Commissioner of t e venue CA11485 R-1 March 24, 2010 APPROVED AS TO LEGAL SUFFICIENCY: l City At orney's Office ENTITY NAME Chesapeake Bay Wine Classic Foundation 613 Bushnell Ct Virginia Beach, VA 23451 Website _..I..__._..._ SUMMARY OF NONPROFIT BUSINESS ACTIVITY The Chesapeake Bay Wine Classic Foundation is dedicated to the belief that the future strength and prosperity of our region and nation are dependent on the education of our youth. Since its inception in 1990, the Foundation has raised and distributed millions of dollars to organizations which have supported the youth of South Hampton Roads, enabling thousands to pursue higher education, meaningful careers and fulfilling lives. In order to fund its rnission, the Foundation stages a variety of events, highlighted by the Annual Grand Auction, for those with a special interest in enjoying, sharing and collecting wines. The primary beneficiary of the Foundation is the Access College Foundation. TAX IMPACT Business Property: Assessment: $350.00 Tax: $12.95 Personal Property Assessment: None Tax None Real Property Assessment: None Tax: None RELEVANT INFORMATION IRS Granted 501 (c) 3 status -March 15, 1998 -~~- Item J.11. ORDINANCES/RESOLUTIONS ITEM # 59882 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, AS CORRECTED: Ordinance to APPROPRIATE $~88; 9~~ $330, 000 from the U. S. Department of Homeland Security re USAI Interoperable Communications Technology Grant in the FY2009-10 Capital Budget Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None April 27, 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 AN ORDINANCE TO APPROPRIATE GRANT FUNDS FROM THE DEPARTMENT OF HOMELAND SECURITY TO CAPITAL PROJECT # 3-138, UASI INTEROPERABLE COMMUNICATIONS TECHNOLOGY GRANT WHEREAS, the U.S. Department of Homeland Security has allocated an Interoperable Communications Technology Grant to the Hampton Roads Planning District Commission; and WHEREAS, the City of Virginia Beach in coordination with the state of Virginia and the Hampton Roads Planning District Commission (HRPDC) is the coordinating funding agency for supporting regional efforts to provide equipment and training for the regional communication network. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That $330,000 is hereby accepted from the U.S. Department of Homeland Security and appropriated, with federal revenue increased accordingly, to Capital Project # 3-138, UASI Interoperable Communications Technology Grant, in the FY 2009-10 Capital Budget. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day of Apr i 1 , 2010. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: ~~~~Q~ Management Services t Ci y A ey's ffice CA11497 R-2 April 14, 2010 -~s- Item J.12. ORDINANCES/RESOLUTIONS ITEM # 59883 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT.• Ordinance to TRANSFER $200, 000 from the General Fund Reserve for Contingencies to the Department of Housing and Neighborhood Preservation FY 2009-10 Operating Budget re demolishing a structure that presents an imminent public safety hazard Voting.• 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay.' None Council Members Absent: None April27, 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 AN ORDINANCE TO TRANSFER FUNDS FROM THE GENERAL FUND RESERVE FOR CONTINGENCIES TO THE FY 2009-10 OPERATING BUDGET OF THE DEPARTMENT OF HOUSING AND NEIGHBORHOOD PRESERVATION TO ADDRESS AN IMMINENT PUBLIC SAFETY RISK BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That $200,000 is hereby transferred from the General Fund Reserve for Contingencies to the FY 2009-10 Operating Budget of the Department of Housing and Neighborhood Preservation to demolish a structure that presents an imminent public safety hazard. Adopted by the Council of the City of Virginia Beach, Virginia, on the 27th day of April , 2010. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Management Services City rney's Office CA11505 R-1 April 20, 2010 -79- Item J.13. ORDINANCES/RESOLUTIONS ITEM # 59884 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADDED and ADOPTED, BY CONSENT: Resolution to EXPAND membership of Bayfront Advisory Committee ADDING Commander, Joint Expeditionary Base Little Creek-Fort Story. Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April 27, 2010 1 REQUESTED BY VICE MAYOR LOUIS JONES AND 2 COUNCILMEMBER JIM WOOD 3 4 A RESOLUTION TO EXPAND THE MEMBERSHIP 5 OF THE BAYFRONT ADVISORY COMMITTEE BY 6 THE ADDITION OF THE COMMANDER, JOINT 7 EXPEDITIONARY BASE LITTLE CREEK-FORT 8 STORY 9 10 WHEREAS, in February 1998, the City Council established the Shore Drive 11 Advisory Committee; and 12 13 WHEREAS, pursuant to Resolution No. 3218, adopted on November 28, 2006, 14 the Shore Drive Advisory Committee was renamed the Bayfront Advisory Committee 15 ("BAC"); and 16 17 WHEREAS, the BAC continues to perform its duties and responsibilities and 18 performs a vital function in assisting the Council in determining the appropriate course 19 of action to take with respect to the Bayfront area; and 20 21 WHEREAS, the City Council, upon recommendation of the Committee, with 22 citizen participation, believes that the composition of the Committee should be changed; 23 and 24 WHEREAS, the Joint Expeditionary Base Little Creek-Fort Story is an integral 25 part of the Bayfront community and provides valuable assistance and information to the 26 BAC, but does not have a representative on the BAC; 27 28 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 29 VIRGINIA BEACH, VIRGINIA: 30 31 That City Council hereby expands the composition of the Bayfront Advisory 32 Committee to include, as an ex officio member, the commander, Joint Expeditionary 33 Base Little Creek-Fort Story or his designee. 34 35 Adopted by the Council of the City of Virginia Beach, Virginia, on the 27thday of 36 April , 2010. APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA11481 R-2 April 22, 2010 -80- Item J. PLANNING ITEM # 59885 1. LIVING FAITH CHRISTIAN FELLOWSHIP/ MARSH WOOD PROPERTIES, LLC 2. BAYLAKE UNITED METHODISTR CHURCH 3. JEFFREYD. BLAKE (OPENAIR JEEPS, LLC) 4. KUBER HOSPITALITY CORP. S. LAKE GEM D8, L.L.C. CONDITIONAL USE PERMIT CONDITIONAL USE PERMIT CONDITIONAL USE PERMIT CONDITIONAL CHANGE OF ZONING MODIFICATION OF CONDITIONS (Approved May l3, 2009) April27, 2010 -80- Item J. PLANNING ITEM # 59885 1. LIVING FAITH CHRISTIAN FELLOWSHIP/ MARSH WOOD PROPERTIES, LLC 2. BAYLAKE UNITED METHODISTR CHURCH 3. JEFFREY D. BLAKE (OPENAIR JEEPS, LLC) 4. KUBER HOSPITALITY CORP. S. LAKE GEM D8, L.L.C. CONDITIONAL USE PERMIT CONDITIONAL USE PERMIT CONDITIONAL USE PERMIT CONDITIONAL CHANGE OF ZONING MODIFICATION OF CONDITIONS (Approved May 13, 2009) April27, 2010 -81- Item J.1. PLANNING ITEM # 59886 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED IN ONE MOTION Items 1, 2 (DEFERRED INDEFINITELY), 3, 4 and S of the PLANNING BY CONSENT AGENDA: Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, Diezel, Robert M. Dyer, Barbara M. Mayor William D. Sessoms, Jr., John E. Wood Council Members Voting Nay: None Council Members Absent.• None William R. "Bill" DeSteph, Harry E. Henley, Vice Mayor Louis R. Jones, Uhrin, Rosemary Wilson and James L. April 27, 2010 -82- Item J.1. PLANNING ITEM # 59887 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, an Ordinance upon application of LIVING FAITH CHRISTIAN FELLOWSHIP/MARSH WOOD PROPERTIES, LLC for a Conditional Use Permit re a religious use at 5257 Challedon Drive: BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of LIVING FAITH CHRISTIAN FELLOWSHIP/MARSH WOOD PROPERTIES, LLC for a Conditional Use Permit re a religious use at 5257 Challedon Drive; (GPIN #14665807020000) DISTRICT 2 - KEMPSVILLE 8041035408 The following conditions shall be required: Within one (1) year from the date of approval of this Conditional Use Permit, the church shall construct the improvements depicted on the submitted elevations and site development plan entitled "Living Faith Christian Fellowship "dated February 1, 2010, which has been exhibited to the Virginia Beach City Council and is on file in the Department of Planning. 2. Within six (6) months from the date of approval of this Conditional Use Permit, the parking lot shall be resurfaced and all damaged asphalt shall be repaired. 3. The applicant shall obtain all necessary permits and inspections from the Planning Department/Permits and Inspections Division and the Fire Department. The applicant shall obtain a Certiftcate of Occupancy for the change of use from the Building Official. 4. Streetscape landscaping, as described in the Landscaping Guide, City of Virginia Beach, December 2002, shall be installed along Challedon Drive. S. This Conditional Use Permit shall be valid for five (5) years from the date of approval. This Ordinance shall be effective in accordance with Section 107 (fi of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-seventh of April, Two Thousand Ten April27, 2010 -83- Item J.1. PLANNING ITEM # 59887 (Continued) Voting.• 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill" DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April 27, 2010 -84- Item J.2. PLANNING ITEM # 59888 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED INDEFINITELY, BY CONSENT, an Ordinance upon application of BAYLAKE UNITED METHODIST CHURCH for a Conditional Use Permit re adding a lot to be used as open space to the existing church site at 4309 Blackbeard Road. Ordinance upon application of BAYLAKE UNITED METHODIST CHURCH for a Conditional Use Permit re adding a lot to be used as open space to the existing church site at 4309 Blackbeard Road; GPIN:147988842230000;14798850940000;147998862310000; 14798851190000;14798831540000 DISTRICT 4 - BAYSIDE Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, Diezel, Robert M. Dyer, Barbara M. Mayor William D. Sessoms, Jr., John E. Wood Council Members Voting Nay: None Council Members Absent: None William R. "Bill" DeSteph, Harry E. Henley, Vice Mayor Louis R. Jones, Uhrin, Rosemary Wilson and James L. Apri127, 2010 -85- Item J.3. PLANNING ITEM # 59889 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, an Ordinance upon application of JEFFREY D. BLAKE (OPENAIR JEEPS, LLC) for a Conditional Use Permit re an auto repair garage at 800 Seahawk Circle, Suites 128 and 129. BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of JEFFREY D. BLAKE (OPEN AIR JEEPS, LLC) for a Conditional Use Permit re an auto repair garage at 800 Seahawk Circle, Suites 128 and 129. (GPIN # 14965488951200) DISTRICT 6 -BEACH 8041035409 The following conditions shall be required: 1. All motor vehicle repairs shall take place within the building 2. There shall be no outside display or storage of equipment, parts or materials 3. There shall be no outside storage of vehicles 4. There shall be no outside storage of trailers in parking areas 5. A Certificate of Occupancy shall be obtained from the Building Official 6. This use shall be administratively reviewed in one (1) year to insure compliance with these conditions This Ordinance shall be effective in accordance with Section 107 (~ of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-seventh of April, Two Thousand Ten Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April27, 2010 -86- Item J.4. PLANNING ITEM # 59890 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, an Ordinance upon application of KUBER HOSPITALITY CORP. for a Chan e o Zoning District Classification from H-1 Hotel District to Conditional B-2 Community Business District and Conditional H-1 Hotel District re a retail center at 1808 Diamond Springs Road. BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of KUBER HOSPITALITY CORP. for a Chan~~ Zoning District Classi ication from H-1 Hotel District to Conditional B-2 Community Business District and Conditional H-1 Hotel District re a retail center at 1808 Diamond Springs Road. (GPIN#14691544630000 portion o,~ DISTRICT 4 - BAYSIDE 204101235 The following conditionls shall be required: 1. An agreement encompassing proffers shall be recorded with the Clerk of the Circuit Court and is herby made a part of the record. This Ordinance shall be effective in accordance with Section 107 (fl of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-seventh of April, Two Thousand Ten Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, Diezel, Robert M. Dyer, Barbara M. Mayor William D. Sessoms, Jr., John E. Wood Council Members Voting Nay: None Council Members Absent: None William R. "Bill " DeSteph, Harry E. Henley, Vice Mayor Louis R. Jones, Uhrin, Rosemary Wilson and James L. Apri127, 2010 CITY OF VIRGINIA BEACH INTER-OFFICE CORRESPONDENCE In Reply Refer To Our File No. DF-7589 TO: Mark D. Stiles FROM: B. Kay Wilson DATE: April 12, 2010 DEPT: City Attorney DEPT: City Attorney RE: Conditional Zoning Application; Kuber Hospitality Corporation The above-referenced conditional zoning application is scheduled to be heard by the City Council on April 27, 2010. I have reviewed the subject proffer agreement, dated February 5, 2010 and have determined it to be legally sufficient and in proper legal form. A copy of the agreement is attached. Please feel free to call me if you have any questions or wish to discuss this matter further. BKW/ka Enclosure cc: Kathleen Hassen/ KUBER HOSPITALITY CORP., A Virginia corporation, To CITY OF VIRGINIA BEACH a Municipal Corporation of the Commonwealth of Virginia THIS PROFFER AGREEMENT ("Agreement") made this 5th day of February, 2010, by and among KUBER HOSPITALITY CORP., a Virginia corporation (the "Grantor" and/or "Applicant/Owner"); and THE CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia (the "Grantee") RECITALS: A. Grantor is the owner of a certain parcel of property located in the City of Virginia Beach being briefly described as 1808 Diamond Springs Road as shown on Map Book 32, Page 70, which said map is duly recorded in the Clerk's Office of the Circuit Court for the City of Virginia Beach, Virginia, and is more particularly described upon Exhibit A attached hereto and made a part hereof (the "Property"). B. Grantor has initiated an amendment to the Zoning Map of the City of Virginia Beach by petition of Grantor addressed to Grantee to change the zoning classification of the Property from H-1 to Conditional B-2 and ~I-1. The proposed amendment is made pursuant to the terms of the City Zoning Ordinance of the City of Virginia Beach, adopted April 18, 1988, as amended and in effect on the date of this Agreement (the "City Zoning Ordinance"). PREPARED BY: ANN K. CRENSHAW, ATTORNEY AT LAW GPIN NO. 1469-15-4463-0000 C. Grantee's policy is to provide for the orderly development of land for various purposes, including commercial purposes, through zoning and other land development legislation. D. Grantor acknowledges that in order to prevent incompatible land use, reasonable conditions governing the use of the Property, in addition to the regulations generally applicable to land zoned B-2 as specified in the City Zoning Ordinance, are required to address the project proposed in Grantor's rezoning application. E. Grantor has voluntarily proffered in writing, prior to the public hearing before Grantee, as a part of the proposed amendment to the Zoning Map and in addition to the regulations specified in the City Zoning Ordinance for the B-2 zoning district, reasonable conditions outlined in this Agreement related to the development and operation of the Property. These conditions will be adopted as a part of the amendment to the Zoning Map relative to the Property, and have a reasonable relation to the use of the Property as rezoned B-2 and are needed as a result of the rezoning. F. The conditions outlined in this Agreement have been proffered by Grantor and allowed and accepted by Grantee as a part of the amendment to the City Zoning Ordinance and the Zoning Map. These conditions shall continue in full force and effect until a subsequent amendment changes the zoning of the Property; provided, however, that such conditions shall continue if the subsequent amendment is part of the comprehensive implementation of a new or substantially revised zoning ordinance of Grantee. The conditions outlined in this Agreement may be amended only by following the procedures and recording the documents as outlined and required in the City Zoning Ordinance. NOW, THEREFORE, Grantor, its heirs, successors, assigns, grantees and other successors in title or interest to the Property, voluntarily and without any requirement by or exaction from Grantee or its governing body and without any element or compulsion or quid fro guo for zoning, rezoning, site plan, building permit or subdivision approval, makes the following declaration of conditions and restrictions governing the use and physical development and operation of the Property, and covenants and agrees that this declaration and the further terms of this Agreement shall constitute covenants running with the Property, which shall be binding upon the Property, and upon all persons and entities claiming under or 2 through the Grantor, its heirs, successors and assigns, grantees and other successors in interest or title to the Property; namely: 1. The Property shall be used for the purposes and uses permitted in the H-1 and B-2 District, along with accessory parking and other accessory site features. 2. The applicant proposes a hotel on the remaining H-1 zoned property and retail stores on the B-2 zoned property. The development will be completed in phases. Phase I will consist of adding the retail along the front of the site, while keeping the existing hotel operational. 3. The hours of operation and number of employees for these businesses will vary. However, it can be anticipated that most retail operations will be open from about 6 a.m. to 10 p.m., Monday through Sunday. 4. Grantor shall install contiguous landscape buffers as approved by the Planning Director, as more particularly set forth on the plan entitled "Diamond Springs Center, 1808 Diamond Springs Road, Conceptual Master Plan" dated September 28, 2009, prepared by Reich Design Associates, PLC. 5. The landscape buffer along the front and rear of the property shall be increased to 15-feet, a 6-foot high opaque privacy fence shall be erected along the rear property line, and the landscaping shall be expanded an additional twenty-five percent (25%). Owner/Applicant agrees to install 25% more landscaping than is required by the City of Virginia Beach Zoning Ordinance. 6. The Director of Planning or designee shall approve all final architectural plans including the color and materials used for the exterior of the buildings. Owner/Applicant agrees to use quality building materials such as hardy plank, earth-tone colors, architectural roofing and brick facade. 7. The existing entrance on Aragon Drive shall be closed and relocated to the east to alleviate traffic safety issues as generally shown on the plan entitled "Diamond Springs Center, 1808 Diamond Springs Road, Conceptual Master Plan" dated July 28, 2009, prepared by Reich Design Associates, PLC. Final entrance location to be acceptable to the Director of Public Works or designee. 8. The west end of the existing "Red Carpet Inn" motel building at 1808 Diamond Springs Road shall be removed to meet all City of Virginia Beach Zoning Ordinance building set back 3 requirements from the proposed zoning line as shown on the plan entitled "Diamond Springs Center, 1808 Diamond Springs Road, Conceptual Master Plan" dated July 28, 2009, prepared by Reich Design Associates, PLC. 9. Further conditions or restrictions against the Property may be required by Grantee during the detailed Site Plan review and administration of applicable codes and regulations of Grantee by all appropriate agencies and departments of Grantee, which, if agreed to by Grantor, shall be observed or performed by Grantor. 10. All references hereinabove to zoning districts and to regulations applicable thereto, refer to the City Zoning Ordinance of the City of Virginia Beach, in force as of the date the conditional rezoning amendment is approved by the Grantee. 11. In order to provide for the coordinated development of the Property, the Property shall be developed in substantial conformity with that certain plan entitled "Diamond Springs Center, 1808 Diamond Springs Road, Conceptual Master Plan" dated July 28, 2009, prepared by Reich Design Associates, PLC (the "Concept Plan"), a copy of which is on file with the City of Virginia Beach, Department of Planning, with regard to layout, ingress and egress, and landscaping. 12. When the Property is developed, it shall be developed substantially as shown on the plan prepared by Reich Design Associates, PLC dated July 28, 2009, said plan being the same plan being submitted to the City Council and on file in the Planning Department of the City of Virginia Beach, Virginia (the "Concept Plan"). 13. 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 conditions and restrictions specified in this Agreement, including (i) the authority by written order to remedy any noncompliance with such conditions and restrictions, and (ii) the authority to bring legal action or suit to insure compliance with such conditions and restrictions, including mandatory or prohibitory injunction, abatement, damages or other appropriate action, suit or proceedings. The failure to comply with all conditions and restrictions in this Agreement shall constitute cause to deny 4 issuance of the required building or occupancy permits as may be appropriate. If aggrieved by any decision of the Zoning Administrator made pursuant to these provisions, Grantor shall petition the governing body of Grantee for the review of such decision prior to instituting proceedings in court. Appropriate symbols may be noted on the Zoning Map to indicate the existence of conditions and restrictions attaching to the zoning of the Property. The ordinance and conditions and restrictions applicable to the Property shall be made readily available and accessible for public inspection in the Office of the Zoning Administrator and in the City of Virginia Beach Planning Department and they may be recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia, and indexed in the name of Grantor and Grantee. All references hereinabove to zoning districts and to regulations applicable thereto, refer to the City Zoning Ordinance of the City of Virginia Beach, in force as of the date the conditional rezoning amendment is approved by the Grantee. 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 and restrictions specified in this Agreement, including (i) the ordering in writing of the remedying of any noncompliance 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 to the provisions of the City Code, the City Zoning Ordinance or this Agreement, the City shall petition the governing body for the review thereof prior to instituting proceedings in court; and (4) the Zoning Map shall show 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 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 5 Office of the Circuit Court of the City of Virginia Beach, Virginia and indexed in the name of the Grantor and Grantee. WITNESS the following signatures and seals: KUBER HOSPITALITY CORP. A Virginia co o ation By: Janek Patel Its: ~ ," ` ~ COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: I, ~j,~Q~-~//uS~A~r ~t-f IZ- , the undersigned, a Notary Public in and for the City and St to aforesaid, do hereby ify that Janek Patel, whose name is signed to the foregoing instrument as ~JU-p,c,O~t of Kuber Hospitality Corp., a Virginia corporation, has sworn to, subscribed, and acknowledged the same before me in my City and State aforesaid this 5th day of February, ?010 on behalf of said Company. The said Janek Patel is personally lalown to me. ., Notary Pt~b is My commission expires: 3 3~ ail ~-- ~o~tr st+N'~ Nova -~ commonw.oR-+~of Y~rpM+~o µ~, C;onrriision F:~ira March 31,2012 ~;~;~ ~ 7205570 6 EXHIBIT A LEGAL DESCRIPTION PARCEL ONE: All that certain piece or parcel of land lying, situate and being in the City of Virginia Beach (formerly Princess Anne County), Virginia, and more particularly designated and described on that certain plat of survey entitled "Amended Plat of Diamond Springs Homes, Princess Anne Co., Va.", dated October, 1952, made by Frank D. Tarrall, Jr. and Associates, Surveyors and Engineers, which plat is duly recorded in the Clerk's Office of the Circuit Court for the City of Virginia Beach, Virginia, in Map Book 32 at pages 70 et seq., and designated thereon as Block Numbered Three (3); reference to which plat is hereby made for a snore particular description of said property. PARCEL TWO: All that certain piece or parcel of land lying, situate and being in the City of Virginia Beach (formerly Princess Anne County), Virginia, and more particularly designated and described on that certain plat of survey entitled "Amended Plat of Diamond Springs Homes, Princess Anne Co., Va.", dated October, 1952, made by Frank D. Tarrall, Jr. and Associates, Surveyors and Engineers, which plat is duly recorded in the Clerk's Office of the Circuit Court for the City of Virginia Beach, Virginia, in Map Book 32 at pages 70 et seq., as follows: BEGINNING at a pin on the Westerly line of the right of way of Darnell Drive on the Eastern line of Block One at the point of intersection of the Eastern and Northerly lines of the said Block One, and from said point of beginning running thence South 12° 39' West 91.68 feet to a point thence turning to the right along the arc of a circle with a radius of 10 feet, an arc distance of 15.71 feet to a point; thence North 77° 21' West 140 feet to a point on the line dividing this property from that leased to Sinclair Oil Company; thence along the line dividing this property from that leased to Sinclair Oil Company North 12° 39' East 106.57 feet to a point on the Northerly line of the said Block One on the line dividing this property from that now or formerly Christopoulos; thence South 75° 29' East 150 feet to a point on the Westerly line of Darnell Drive, the point of beginning. It being the same property conveyed to Kuber Hospitality Corp., a Virginia corporation, by deed from B. D. Patel and Chandrabala B. Patel, husband and wife, dated October 1, 1998 and duly recorded October 5, 1998 in the aforesaid Clerk's Office in Deed Book 3960 page 1877. ODM A\f'CDOCS\DOCS V B\8341605\5 7 -87- Item J.S. PLANNING ITEM # 59891 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED/CONDITIONED, BY CONSENT, Ordinance upon application of LAKE GEM D8, L.L.C for Modi ication o~ Conditions 2, S and ADDING a condition (approved by City Council on May 13, 2009) to allow operation of the Outdoor `Green' Market the weekend prior to Thanksgiving and Christmas Holidays in addition to the days previously approved, allow homemade items as well as handmade items and request a manned table with literature advertising the Red Mill Marketplace Shops at 2181 Upton Drive. BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon application of LAKE GEM D8, L.L.C. for Modification of Conditions 2, S and ADDING a condition (approved by City Council on May 13, 2009) to allow operation of the Outdoor `Green' Market the weekend prior to Thanksgiving and Christmas Holidays in addition to the days previously approved, allow homemade items as well as handmade items and request a manned table with literature advertising the Red Mill Marketplace Shops at 2181 Upton Drive. (GPIN#24142499220000) DISTRICT 7 -PRINCESS ANNE The following conditionls shall be required: All conditions, with the exception of Number 2 and Number S attached to the Conditional Use Permit granted by the City Council on May 13, 2009, remain in effect. 2. Condition Number 2 of the May 13, 2009, Conditional Use Permit is deleted and replaced with the following: Operation of the market shall occur only once per week, on Saturday, between 8: 00 A.M. until l: 00 P.M., during the period between the traditional Memorial Day weekend and the last Saturday in September, in addition to two (2) "Holiday Markets " -one (1) before Thanksgiving and one (1) before Christmas. 3. Condition Number S of the May 13, 2009, Conditional Use Permit is deleted and replaced with the following: The market shall be only for the sale of local agricultural, seafood, related organic food products, pet friendly businesses, non profit organizations, health and wellness experts as well as homemade and handmade items. A manned table may also be provided with literature pertaining to the shops located in the shopping center but no sale of items from the shops in the shopping center shall occur at this table. This Ordinance shall be effective in accordance with Section 107 (~ of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-seventh of April, Two Thousand Ten April27, 2010 -88- Item J.S. PLANNING ITEM # 59891 (Continued) Voting: I1-0 (By Consent) Council Members Voting Aye: Rita Sweet Bellitto, Glenn R. Davis, William R. "Bill " DeSteph, Harry E. Diezel, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None April27, 2010 -89- Item K. APPOINTMENTS ITEM # 59892 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS: MINORITYBUSINESS COUNCIL OPEN SPACE ADVISORY COMMITTEE PUBLIC LIBRARY BOARD SOCIAL SERVICES BOARD TOWING ADVISORY BOARD April27, 2010 -90- Items N. ADJOURNMENT ITEM # 59893 Mayor William D. Sessoms DECLARED the City Council Meeting ADJOURNED at 8:05 P.M. ~ . y~/,/~ -----~ ------------------ Beverly O. Hooks, CMC Chief Deputy City Clerk th Hodges Fraser, MMC City Clerk City of Virginia Beach Virginia William D. Sessoms, Jr. Mayor Apri127, 2010 -90- Items N. ADJOURNMENT ITEM # 59893 Mayor William D. Sessoms DECLARED the City Council Meeting ADJOURNED at 8:05 P.M. ~ ~. y~,~~ ------------ - - ---------- Beverly .Hooks, CMC Chief Deputy City Clerk R h Hodges Fraser, MMC City Clerk City of Virginia Beach Virginia ~~~~ William D. Sessoms, Jr. Mayor April 27, 2010