OCTOBER 12, 2010 MINUTESCITY OF VIRGINIA BEACH
"COMMUNITY FOR A LIFETIME"
CITY COUNCIL
MAYOR W/LLIAM D. SESSOMS, JR., At-Large
V/CE MAYOR LOI,'/S R. JONES, Bayside - Distrrc~ a
R/TA SWEET BELIJTTO, At-Large
GLENN R. DAVIS, Rose Hall - Districr 3
WILLIAM R. DeS7'F,PH, At-Large
HARRY E. D/EZE!„ Kempsvi!!e - District 2
ROBERT M. DYER, Centervi!!e - District 1
BARBARA M. HENI,EY, Princess Anne - Drslrict 7
JOHN G. UNRlN, Beach -- Distrrct 6
ROSEMARY WlLSON, AI-Large
JAMES L. WOOD, l.ynnhaven -Dislrict 5
CITY COUNCIL APPOINTEES
Cl7'Y MANAGF.'R JAMF.S K. SPORF,
ClTY A770RNFY MARK D. ST/l,h_'S
C!7'Y ASSESSOX .IERA/.D BANAGAN
C/TYAUD/TOR - [.YNDONS. RF.M/AS
C'/TY CL,ERK - RUTH HODGES FR,9SER, MMC
CITY COUNCIL AGENDA
12 October 2010
CITYHALL BUILDING
240/ COURTHOUSE DR/VE
VIRGINIA BEACH, VIRGINIA 23456-8005
PHONE: (757J 385-4303
FAX (757) 385-5669
E-MAIL: Crycncl@vbgov.com
I. CITY COUNCIL LIAISON REPORTS - Conference Room - 3:30 PM
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
5:00 PM
C. RECESS TO CLOSED SESSION
V. FORMAL SESSION - City Council Chamber -
A. CALL TO ORDER - Mayor William D. Sessoms, Jr.
B. INVOCATION: Ms. Ruby Christian
Chaplain, City of Virginia Beach
6:00 PM
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
l. INFORMAL and FORMAL SESSIONS September 28, 2010
G. FORMAL SESSION AGENDA
H. PUBLIC HEARING
LAKE GASTON INGRESS - EGRESS EASEMENT
Ashley Harrell - 36156 Burdette Road, Southampton County
I. CONSENT AGENDA
J. ORDINANCES/RESOLUTION
1. Ordinance to AUTHORIZE the City Manger to execute the necessary documents to convey a
permanent ingress and egress easement across the Lake Gaston water line to ASHLEY
HARRELL at 36156 Burdette Road, Southampton County
2. Resolution to AUTHORIZE the issuance, sale and execution of $20-Million Series 2010A
Storm Water Utility Revenue Bonds and Refunding Revenue Bonds Series 2010B not to exceed
$8-Million re storm water utility system improvements
3. Resolution REQUESTING the City's Delegation to the 2011 General Assembly Session
support legislation that will meet the City's goals and objectives set forth in the 2011 Legislative
Agenda
4. Ordinance to AUTHORIZE the City Manger to execute the necessary documents to accept
rehabilitated property from WM Jordan Company, Inc. for use as housing for the Disabled at
1457 Ewell Road
5. Ordinance to TRANSFER $377,518 from the Sheriff's Workfarce Release Facility Design and
Site Selection to the FY2010-11 Inmate Services Fund Reserves for Contingencies re inmate
benefits
K.
6. Ordinances to TRANSFER funds from the Reserve for Contingencies to the FY2010-11
Operating Budgets:
a. $200,000 to the City Attorney re employing an Election Specialist to assist in redrawing the
City's seven residence District Boundaries
b. $175,000 to Housing and Neighborhood Preservation re enhanced Homeless assistance
PLANNING
Application of S. DAWSON and SUSAN P. STERLING for a Nonconformin~ Use re
expansion of an existing dwelling at 801 Baltic Avenue (deferred indefinitely 9/28/10)
(DISTRICT 6 - BEACH)
RECOMMENDATION
DEFER TO 10/26/10
2. Application of VIRGINIA BEACH RAQUET CLUB NORTH ASSOCIATES for
Modification of Conditions re proposals for improvements at the indoor and outdoor tennis
courts and restrictions on the temporary inflatable covers at 1950 Thomas Bishop Lane
(DISTRICT 5 - LYNNHAVEN)
RECOMMENDATION
APPROVAL
Application of NEW CINGULAR WIRELESS PCS, LLC and CITY OF VIRGINIA
BEACH for a Conditional Use Permit re a communications tower at 1900 Sandbridge
Road (DISTRICT 7 - PRINCESS ANNE)
RECOMMENDATION
APPROVAL
4. Application of KROGER LIMITED PARTNERSHIP I for a Conditional Use Permit re
automobile service and fuel station at 1800 Republic Road (DISTRICT 6- BEACH)
RECOMMENDATION
APPROVAL
5. Application of OLD DOMINION SOCCER CLUB (ODSC) and BROOK BAPTIST
CHURCH for a Conditional Use Permit re use of church's open space for lighted Soccer
fields at 4397 Wishart Road (Deferred 8/11/10) (DISTRICT 4- BAYSIDE)
RECOMMENDATION
APPROVAL
L. APPOINTMENTS
ENERGY ADVISORY COMMITTEE
HEALTH SERVICES ADVISORY BOARD
HUMAN RIGHTS COMMISSION
TIDEWATER YOUTH SERVICES COMMISSION
VIRGINIA BEACH TOMORROW COMMISSION
WETLANDS BOARD
M. UNFINISHED BUSINESS
N. NEW BUSINESS
O. ADJOURNMENT
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PUBLIC COMMENT
Non-Agenda Items
Each Speaker will be allowed 3 minutes
and each subject is limited to 3 Speakers
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CITY COUNCIL WORKSHOP
CANCELLED
NOVEMBER 2, 2010
GENERAL AND LOCAL ELECTIONS
CITY COUNCIL / SCHOOL BOARD 2
: "FIVE YEAR FORECAST" =
Building No. 19
TUESDAY, NOVEMBER 16, 2010
If you are physically disabled or visually impaired
and need assistance at this meeting,
please call the CITY CLERK'S OFFICE at 385-4303
~~~~*~~~*~*
-1-
MINUTES
VIRGINIA BEACH CITY COUNCIL
Virginia Beach, Virginia
October 12, 2010
Mayor William D. Sessoms, Jr., called to order the Informal Session and invited the CITYCOUNCIL
LIAISONREPORTS in the City Council Conference Room, Tuesday, October 12, 2010, at 3: 30 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. Uhrin,
Rosemary Wilson and James L. Wood
Council Members Absent:
None
October 12, 2010
-2-
CITY COUNCIL LIAISON REPORTS
3:30 P.M.
ITEM # 60327
VIRGINIA AQUARIUM and MARINE SCIENCE FOUNDATION
Councilman William R. "Bill " DeSteph - Liaison, Virginia Aquarium and Marine Science Foundation,
advised attendance has increased dramatically and he believes this is due to the new exhibits, primarily
the Komodo Dragons and the Restless Planet .
ITEM # 60328
VIRGINIA MUNICIPAL LEAGUE.
Council Lady Rosemary Wilson and Councilman Glenn R. Davis attended the Virginia Municipal League
Conference.
Council Lady Wilson served as the Ciry's Voting Delegate, and was elected s President-Elect. In VML's
105 year history, there has been only one Virginia Beach representative elected President, (Meyera E.
Oberndor~. The Conference was held in the Hampton Convention Center, with a very nice Embassy
Suites Hotel next door (on site) where the attendees stayed. This is a concept the Ciry should examine. No
Ciry has applied for the VML Conference for 201 S, including Virginia Beach. This Conference has been
held in Roanoke several times. The Mayor asked the Ciry Manager to have staff submit a bid for the 201 S
Conference.
ITEM # 60329
GREEN RIBBON COMMITTEE
Council Lady Barbara M. Henley, Liaison - Green Ribbon Committee
Clay Bernick, Manager - Environment and Sustainability O~ce, Department of Planning, presented
information re the Green Ribbon Committee's Initiatives, Accomplishments and Energy E~cient Building
Tar Credits. The Ciry received another GO GREEN AWARD from the Virginia Municipal League
Conference.
Energy Efficient Buildings Tax Credits
^ Effective July 1, 2010
^ One property has requested credit to- date
^ New application process being finalized by City Assessor, Permits and Inspections,
Environment and Sustainability Office and Energy Management Administrator
^ A separate classification of real property
^ To qualify requires documentation
^ Current rate established for FY2010-2011 at $0.76 per hundred of assessed valuation
^ Documentation required:
^ Building exceeds energy efficiency standards prescribed in Virginia Uniform Statewide
Building Code by 30 percent
^ Certification determined by qualified Architect, Professional Engineer, or Licensed
Contractor not related to taxpayer
^ Previous fiscal year real assessment for the building
October 12, 2010
-3-
CITY COUNCIL LIAISON REPORTS
ITEM # 60329 (Continued)
Energy Efficient Buildings Tax Credits
(Continued)
^ Documentation:
^ Building deemed in compliance if it meets or exceeds performance standa~ds of the:
^ Green Globes Green Building Rating System of the Green Building Initiative,
^ Leadership in Energy and Environmental Design (LEED) Green Building Rating
System of the U.S. Green Building Council,
0 EarthCraft House Program guidelines, or
^ Energy Star qualified home under the Energy Star program developed by the United
States Environmental Protection Agency
Green Ribbon Committee
Accorreplishments through July 2010
/ LEED Certification for City Buildings
/ Vegetative Buffer Guidelines - City Policy
/ DSC Notice - Bio-Retention in Park Lots
/ Prohibition of Feeding of Wildlife Ordinance
/ Improved Stormwater Management for City Redevelopment and Capital projects
/ Buffer Restoration Requirements for Conditional Zoning, Variances, and Easements - City
Policy
/ Watershed Goals (TMDL Guidelines)
/ Comprehensive Stormwater Project Planning
/ Implementation Committee Re-appointed for a two Year term, July 2009
/ Residential Street Width Reduction - Ordinance Approved July 2009
/ Wind Energy Ordinance approved August 2009
/ Reduce size of Cul de sacs Ordinance approved November 2009
/ Study completed for Mill Dam Creek, first Comprehensive Stormwater Plan project, design
began February 2010
/ Energy Efficient Buildings Tax Incentive approved May 11, 2010
/ Stewardship Award Program guidelines completed and advertised in October 2009, first
awards presentation @ Earth Day 2010
/ Site Stabilization Ordinance approved June 8, 2010
/ Parking Ordinance Amendments - Approved by Planning Commission June 2010 - Council
Action Pending
/ Landscape/Site Guidelines Revised - Porous Paving, Bicycle Parking Planning Commission
June 2010 - Council Action Pending
October 12, 2010
-4-
CITY COUNCIL LIAISON REPORTS
(ITEM # 60329 (Continued)
Green Ribbon Co~nmittee Iniliatives Underway
^ Amendments to Parking Ordinance and Landscape/Site Guidelines - City Council briefing
November 23, 2010
^ Integrated Site Design Guide - Draft to Green Ribbon Committee in November / December
2010; begin public review process Winter Z011
^ Expanded Stewardship Award Program to include residential awards as complement to
commercial awards for Spring 2011
Hampton received over $3-or $4-Million in Federal Funds to jump-start energy efficient programs that
will apply in Virginia Beach also. Mr. Bernick will provide updates.
Councilman DeSteph requested this information be provided to the Tidewater Builders Association (TBA)
and HRRA (Hampton Roads Realry Association).
October 12, 2010
-5-
A GENDA RE VIE W SESSION
3:40 P.M.
ITEM # 60330
ADDED: Resolution to ENDORSE participation in Mayor's Action Challenge for children and families
initiative for National League of Cities
This Resolution shall be PRESENTED and ADDED to the Consent Agenda as J. 7.
ITEM # 60331
BY CONSENSZIS, the following items shall compose the CONSENT AGENDA:
ORDINANCES/RESOL IITION
1. Ordinance to AUTHORIZE the City Manger to execute the necessary documents to
convey a permanent ingress and egress easement across the Lake Gaston water line to
ASHLEYHARRELL at 36156 Burdette Road, Southampton County
2. Resolution to AUTHORIZE the issuance, sale and execution of $20-Mil[ion Series
2010A Storm Water Utility Revenue Bonds and Refunding Revenue Bonds Series 2010B,
not to exceed $8 Million re storm water utility system improvements
3. Resolution REQUESTING the City's Delegation to the 2011 General Assembly Session
support legislation that will meet the City's goals and objectives set forth in the Z011
Legislative Agenda
4. Ordinance to AUTHORIZE the City Manger to execute the necessary documents to
accept rehabilitated property from WMJordan Company, Inc. for use as housing for the
Disabled at 1457 Ewell Road
S. Ordinance to TRANSFER $377, 518 from the Sheriff's Workforce Release Facility
Design and Site Selection to the FY2010-I1 Inmate Services Fund Reserves for
Contingencies re inmate benefits
6. Ordinances to TRANSFER funds from the Reserve for Contingencies to the FY2010-11
Operating Budgets:
a. $200, 000 to the City Attorney re employing an Election Specialist to assist in
redrawing the City's seven residence District Boundaries
b. $175, 000 to Housing and Neighborhood Preservation re enhanced Homeless
assistance
October 12, 2010
-6-
A GENDA RE VIE W SESSION
ITEM # 60332
S. Application of OLD DOMINION SOCCER CL UB (ODSC) and
BROOKBAPTIST CHURCH for a Conditional Use Permit re use of
church's open space for lighted Soccer fields at 4397 Wishart Road
(Deferred 8/11/10) (DISTRICT 4 - BAYSIDE)
Cindy Curtis, Director of Parks and Recreation, advised the City has space available. The Soccer Club is
currently utiliaing Providence Park. Ms. Curtis advised she feels comfortable with advising the applicant
they can utilize this Park during the Spring. The Kempsville Pony League also utilizes this Park during
the Spring. If this succeeds, the Ciry would entertain a Conditional Use Agreement with the applicant.
There are no homeowners around this location. The Soccer Club could utilize their portable lights at this
facility. The comparison of cost shall be provided. This is a"Select" Soccer group and not a"general
recreation" Soccer group. Typically, support is not provided to "select" groups. Ms. Curtis will advise
the ratio of needs provided.
ITEM # 60333
BY CONSENSUS, the following items shall compose the PLANNING BY CONSENT AGENDA:
K.. PLANNING
Application of S. DAWSON and SUSAN P. STERLING for a
Nonconforming Use re expansion of an existing dwelling at 801
Baltic Avenue (DEFERRED INDEFINITELY 9/28/10)
(DISTRICT 6 - BEACH)
2. Application of VIRGINIA BEACH RAQUET CLUB NORTH
ASSOCIATES for Modi rcation of Conditions re proposals for
improvements at the indoor and outdoor tennis courts and restrictions on
the temporary inflatable covers at 1950 Thomas Bishop Lane
(DISTRICT S - LYNNHAVEN)
3. Application of NEW CINGULAR WIRELESS PCS, LLC and CITY
OF VIRGINIA BEACH for a Conditional Use Permit re a
communications tower at 1900 Sandbridge Road
(DISTRICT 7 - PRINCESS ANNE)
Item L1. (S. DAWSON and SUSAN P. STERLING for a Nonconforming Use) was DEFERRED
INDEFINITELYon September 28, 2010.
Item L.3. (NEW CINGULAR WIRELESS PCS, LLC and CITY OF VIRGINIA BEACH for a
Conditional Use Permit). William J. Whitney, Planning Director, advised the applicant submitted a
corrected survey showing that none of the area proposed for improvement is located within the 100-
year floodplain. The revised survey is hereby made a part of the record
October 12, 2010
-~-
ITEM # 60334
(BREAK 4: 00 P.M. - S: 00 P.M. for MAYOR'S PRESS CONFERENCE)
Mayor William D. Sessoms, Jr. called to order the PRESS CONFERENCE of the VIRGINIA BEACH
CITY COUNCIL in the Council Chamber, City Hall Building, Tuesday, October 12, 2010, at 4: 00 P.M.
Mayor Sessoms requested the Virginia Beach School Board and City Council Members sit around the
podium. Mayor Sessoms expressed appreciation to each and all for their representation and attendance.
Mayor Sessoms has accepted an invitation from the National League of Cities to join the Mayor's Action
Challenge for Children and Families. This National Initiative calls upon Mayors across the United
States to set bold, measurable goals to guide local actions that will strengthen the community's children
and families. The Challenge specifies that these goals shall focus on four (4) key areas; opportunities for
children to learn and grow; a safe neighborhood for them to call home; a healthy lifestyle and
environment and a financially fit family in which they may thrive; the Challenge provides resources to
participating cities to help them develop and achieve these goals.
Mayor Sessoms advised it is with great enthusiasm and pride that Virginia Beach joins the Mayor's
Action Challenge for Children and Families, sponsored by the National League of Cities. By 2012,
ninety percent (90%) of preschool children will be prepared to be successful in kindergarten through a
network of public private partnerships that focus on prenatal to four year old children and their parents.
Eighty-eight (88%) is the current percentage. By 2011, Police O~cers will go "door-to-door" to gain an
in-depth understanding from at least three hundred (300) residents of At-Risk neighborhoods, concerning
what is required to help them feel safer in their homes. Everyone should feel safe in their homes. By
2011, a Comprehensive Strategy shall be developed for addressing childhood obesiry in virginia Beach
by bringing together the School's healthy literacy and physical fitness programs and efforts by the Public
Hecrlth Department, the City and the Health Care Sector. By 2015, the City must ensure five hundred
(500) low income families will be financially fit for the future. Because of the people who live in this City,
Virginia Beach is the "Greatest City in the World ".
Chairman Dan Edwards, Virginia Beach School Board, expressed appreciation. Virginia Beach has
provided Children and Families wonderful opportunities and are ecstatic re the Mayor's Action
Challenge. This Plan reflects some of the finest actions the Cities and Schools have undertaken. This
initiative will serve to align the City to ensure the focus in on the young people and their parents. To a
large extent, this initiative will provide a structural alignment for the programs across the City
comparable to what the Schools already have in place with the Compass to 2015. The School's Division
Strategic Plan has provided real tools to the students for the Twenty-first Century including
communication, collaborative skills and critical thinking. Virginia Beach Grow Smart and Smart
Beginnings will address those critical years betrveen prenatal and pre-kindergarten and provide
beginning students with greater pariry and overall readiness to learn. The Sandler Center Foundation is
going to sponsor a program entitled Access the Arts, which will allow students from some of our more
demographically challenged schools to take advantage of a fine arts program at the Sandler Center.
Heidi Goldberg, National League of Cities, commended Mayor Sessoms and the City of Virginia Beach
for their commitment to children and their families. National League of Cities is very enthusiastic. The
goals and strategies outlined reflect an awareness that thriving cities and vibrant economies are built on
a foundation of strong families and empowered neighborhoods that support every child. Two (2) years
ago during the National League of Cities Annual Congress of Cities Conference, a group of Mayors
announced a nationwide initiative designed to promote municipal leadership and innovation in
improving child and family well being. By challenging each other to set specific, measurable goals and
targets in four (4) key areas, Mayors participating in this initiative seek to ensure that every child has
opportunities to learn and grow; a safe neighborhood for them to call home; a healthy lifestyle and
environment; and, a financially fit family in which they may thrive.
October 12, 2010
-8-
ITEM # 60335
Mayor William D. Sessoms, Jr., called to order the INFORMAL SESSION of the VIRGINIA BEACH
CITY COUNCIL in the City Council Conference Room, City Hall Building, Tuesday, October 12, 2010,
at S: 00 P. M.
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:
PERSONNEL MATTERS: Discussion, consideration of, or interviews
of prospective candidates for employment, assignment, appointment,
promotion, performance, demotion, salaries, disciplining or resignation
of specific public o~cers, appointees or employees pursuant to Section
2.2-3711 (A)(1)
Council Appointments: Boards, Commissions, Committees, Authorities,
Agencies and Appointees
Upon motion by vice Mayor Jones, seconded by Councilman. Wood, Ciry Council voted to proceed
into CLOSED SESSION at S: 00 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: S: 00 P.M. - S:OS P.M.J
October 12, 2010
-9-
FORMAL SESSION
VIRGINIA BEACH CITY COUNCIL
October 12, 2010
Mayor William D. Sessoms, Jr. called to order the FORMAL SESSION of the i~IRGINIA BEACH CITY
COUNCIL in the Council Chamber, City Hall Building, Tuesday, October 12, 2010, at 6: 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. Uhrin,
Rosemary Wilson and James L. Wood
Council Members Absent:
None
INVOCATION: Ms. Ruby Christian
Chaplain, Ciry of Virginia Beach
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
impropriery 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 a~liate 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 o~cial records of City Council. Mayor Sessoms' letter of
March 24, 2009, is hereby made a part of the record.
October 12, 2010
-10-
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 identifying 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 o~cial records of Ciry 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 identifying 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 Ciry 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 a~liated with Prudential
Decker Realty. Because of the nature of Real Estate Agent a~liation, 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.
October 12, 2010
-11-
Item V-E.1
CERTIFICATION
ITEM # 60336
Upon motion by Councilman Dyer, seconded by Councilman Wood, 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 certification 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 Ciry Council.
Voting.• 11-0
Council Members VotingAye:
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
October 12, 2010
RESOLUTION
CERTIFtCATION 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 #60335, Page 8, and in accordance with tbe provisions of The Virginia
Freedom of Informarion 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 City Council.
csd'~/uc-c~.,~
th Hodges raser, MMC
Ciry Clerk
October 12, 2010
-12-
Item V-F.
MINUTES
ITEM # 60337
Upon motion by Council Lady Wilson, seconded by Councilman Dyer, City Council APPROVED the
MINUTES of the INFORMAL and FORMAL SESSIONS of September 28, 2010:
Voting.• 10-0
Council Members Voting Aye:
Rita Sweet Bellitto, 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
Council Members Abstaining:
Glenn R. Davis
Glenn R. Davis ABSTAINED as he was in Richmond, attending a Gubernatorial Reception celebrating the
opening of the new Operation Smile Global Headquarters in Virginia Beach, [Rose Hall DistrictJ. He was not
in attendance for the City Council Session of September 28, 2010.
October 12, 201 D
-13-
Item V-G.1.
ADOPTAGENDA
FOR FORMAL SESSION ITEM # 60338
BY CONSENSUS, City Council ADOPTED:
AGENDA FOR THE FORMAL SESSION
ADDED to the Consent Agenda:
Resolution to ENDORSE participation in Mayor's Action Challenge for
children and families initiative for National League of Cities
October 12, 2010
-14-
Item V-G.2.
ADDED TO
AGENDA
ITEM # 60339
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council City Council ADDED
to the CONSENT AGENDA as Item No. 7.
Resolution to ENDORSE participation in Mayor's Action Challenge for
children and families initiative for National League of Cities
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
October 12, 2010
~~~~~ ~~~~1 ~
70 ~N~o~,S~ ~A~,71CI~A7ION IN 2~ "~A2'O12'S
.~CT'ION C~CALL~NG~ ~'O~iZ, G7fIL~~,~N AN~D
FAMILI~'.S" zN771A71~ o~ ~ N.~71oNA~ L~AGv~
O~F' CI71~',S
`W'J~E1~~,S: Strong cities are 6uiCt on a foundation of strong famiCies and empowerecC
neigk6or(oods tFiat support eacFi andevery cliCd,•
`GU3~E1~~S: ~e "~layors' Action ChafCenge for C~iCdren ancf ~Fami~ies" is an initiative of
t~e Natio~aaC League of Cities t(at caCCs upon .~Layors and cities across tke country to set 6ofcl;
measura6Ce goaCs to guide Cocaf actions t(zat willstrengthen tFieir comntunities' c(i(fren and famiC'~es;
`(ti'~J[E1~.A,S: 2Tie Cha~Cenge pecifi'es tFiat t(ese goaCs s(aCC focus on four key areas:
opportunities for cFcifdren to fearn and grow; a safe neig(zdor~ood for t~em to caCC Fiome; a fiea~t(y
CzfestyCe and eravironment; and, a financiatCy fit famiCy in wFiicFi tFiey may t(zrive; and,
`G1~JfrE1~.f7,S: ~e C(aCCenge provicCes resources to participating cities to heCp t~em cCeveCop
and acFiieve t(ese goaCs.
NO`i~V, 2JLE1~~'Ol~, ~B I2'12,~F„SOL~N'E~ B`Y`Z~H~E C0~INCIG OF' ~E CI`I~.'
O~F `t~l~,GIJVI,~ BrE./'~~L, `i~I1~,C'jIJV7A: 7Fiat'f~irginia ~eac( City Counci~here6y endorses tFce
~ity's participation in tFie ~layor's Action ~hafCenge for Chi~ren ancf rFanaifies; ancC, furtker requests
t(e City ~ta~aager take af~steps necessary to assure tFie City's participation in tFee CFiaCfenge.
Adoptecf dy the Caunci~of the City of `Virginia 1~3eacFe, `Virginia on tFie 7we~k cfay of
Octoder 2010.
--~,. S.~
CounciCLacCy ~'ta we tto - .
CoicnciCtn4n iam 12, "BiIC' ~DeStepk
~c/
Councifinan ~,o6ert ~(. "` ° ~Dyer
. ~
`Vice ayorLouis 12, ~o s `
~(/~~~G-r.~~
n „ r. .
CounciCman G'Centt r' ~Davis
a~ .
Cou iCman ~Dieze
Counci L~y Bar ara.~fenCey
Co iCman,~o&n ~E. 7Jkrin
L 'pUnod
CounnCLady 12,oset 4~VaCson , ~~w~~ ~~~- ~-°--° •
~
~Y(ayor `WiCCiam ~D. "~WiCC' Sessoms
-15-
Item V-H.
PUBLIC HEARING ITEM # 60340
Mayor Sessoms DECLARED A PUBLIC HEARING:
LAKE GASTON INGRESS - EGRESS EASEMENT
Ashley Harrell - 36156 Burdette Road, Southampton County
There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING.
October 12, 2010
-16-
Item V-J.
ORDINANCES/RESOL UTIONS ITEM # 60341
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED in ONE
MOTION Items 1 a/b, 2, 3, 4, S, 6 a/b and 7(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
October 12, 2010
-17-
Item V-J.1.
ORDINANCES/RESOL UTIONS ITEM # 60342
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY
CONSENT:
Ordinance to AUTHORIZE the Ciry Manager to execute the necessary
documents to convey a permanent ingress egress easement across the
Lake Gaston water line to ASHLEY HARRELL at 36156 Burdette
Road, Southampton Counry
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. Zlhrin,
Rosemary Wilson and James L. Wood
Council Members Voting Nay:
None
Council Members Absent:
None
October 12, 2010
1 AN ORDINANCE TO AUTHORIZE THE
2 CONVEYANCE OF A PERMANENT INGRESS
3 AND EGRESS EASEMENT ACROSS THE LAKE
4 GASTON WATER LINE
5
6 WHEREAS, the City of Virginia Beach (the "City") owns approximately 329
7 acres of land (the "Property") in Southampton County, Virginia, which it acquired by
8 deed (the "Deed") from the Norfolk and Western Railway Company, recorded in Deed
9 Book 326, at page 827, in the Clerk's Office of the Circuit Court of Southampton County;
10
11 WHEREAS, City acquired the Property for use as the utility corridor for the
12 Lake Gaston Water Supply Project, an underground pipeline (the "Pipeline") providing
13 up to 60 million gallons of water per day for citizens of Southeastern Virginia;
14
15 WHEREAS, the Deed was made expressly subject to any and all
16 easements, conditions, reservations and restrictions as may appear of record or as may
17 be apparent from an examination of the premises;
18
19 WHEREAS, a gravel driveway (the "Driveway") running south (across the
20 current Pipeline) from Burdette Road Route 169 to 36156 Burdette Road, Southampton
21 County, Virginia, existed at the time of the Deed;
22
23 WHEREAS, Ashley M. Harrell ("Harrell"), the current owner of 36156
24 Burdette Road, would like the City to convey a permanent ingress and egress easement
25 across the portion of the Property where the Driveway is located, for the benefit of
26 Ashley M. Harrell and/or her successors and assigns.
27
28 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY
29 OF VIRGINIA BEACH, VIRGINIA:
30
31 1. That the City Council approves the conveyance of a permanent ingress
32 and egress easement (the "Easement") for the benefit of Ashley M. Harrell and/or her
33 successors and assigns for the purpose of providing access to 36156 Burdette Road,
34 Southampton County Virginia, shown as "25' Proposed Ingress & Egress Easement" on
35 that plat entitled "Exhibit Showing Easement for Ingress/Egress for Ashley M. Harrell
36 Located at 36156 Burdette Road Jerusalem Magisterial District Southampton County,
37 Virginia" attached hereto as Exhibit A, and a made a part hereof.
38
39 2. That the City Manager or his authorized designee is hereby authorized
40 to execute the Deed of Ingress and Egress Easement and any other documents
41 necessary and appropriate in connection with the Easement, so long as such
42 documents are in substantial conformity to the Summary of Terms attached hereto as
43 Exhibit B, and made a part hereof, and such other terms, conditions or modifications
44 deemed necessary and sufficient by the City Manager and in a form deemed
45 satisfactory by the City Attorney.
46
47 Adopted by the Council of the City of Virginia Beach, Virginia, on the
48 _~~~~ay of oct~hPr , 2010.
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1212 5. CHURCH ST. SMITHFIELD, VA. 23430
TEl.N0.757-357-3106
EXHIBIT SHOWiNG EASEMENT POR 1NGRE55/EGRESS FOR
ASHLEY M. HARRELL
LOCATED AT 36156 BURDETTE ROAD
JERUSAI.EM MAGISTERIAL DISTRICT
SOUTHAMPTON COUNTY, VIRGINIA
SCALE 1" = 100' AUG. 17, 2009
tNSTA. +~00000599
REEERENCE - D.B. 281 P6. 557
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~- DEN07E5 4RON PIPE FOUND
o- DEN07E5 IRON PIN SET
THE UNOERSIGNED HEREBY AGREES TO THE 2.5~ INGRE55 8 EGRE55
EASENENT.
OA'SE __ --
DATE - - -- ---
QEV55EOAPRll13,2010DATE----- ---~~--~~---"~~~
0.EV~5ED NO~. ~3.2ooy p~g_<<q_S 53-50
REVISED OCT.16,2009
EXHIBIT "B"
SUMMARY OF TERMS
Conveyance of a Permanent Ingress and Egress Easement across the Lake Gaston
Water Line
GRANTOR: City of Virginia Beach
GRANTEE: Ashley M. Harrell
PROPERTY: Portion of approximately 329 acres located in Southampton
County, Virginia and acquired from Norfolk and Western Railway
company by deed recorded in Deed 326, at page 827
LEGAL DESCRIPTION OF EASEMENT AREA:
ALL THAT certain easement area (the "Easement Area")
belonging, lying, situate and being in Southampton County,
Virginia, and designated and described as "25' PROPOSED
INGRESS & EGRESS EASEMENT" as shown on that plat
entitled "EXHIBIT SHOWING EASEMENT FOR
INGRESS/EGRESS FOR ASHLEY M. HARRELL LOCATED
AT 36156 BURDETTE ROAD JERUSALEM MAGISTERIAL
DISTRICT SOUTHAMPTON COLTNTY, VIRGINIA", dated
August 17, 2009 and revised through April 13, 2010, said plat
being attached hereto as Exhibit A, to which reference is made for
a mare particular description.
CONDITIONS OF EASEMENT:
1. Grantor shall have the right to construct, operate, maintain and repair the
water pipeline and transmission facilities (the "Facilities"), located within
the Easement Area and will assume no responsibility or liability if access
of Grantee is disrupted by construction, repairs, maintenance, or condition
of Grantor's property and Facilities; and will assume no responsibility or
liability if access of Grantee is disrupted by construction, repairs,
maintenance, or condition of Grantor's property and Facilities.
2. Grantee will be allowed to have access over the Easement Area, but only
to the extent described in the Deed of Easement; will warrant and
guarantee that she will not damage in any way the Grantor's Facilities and
property, or interfere with construction, operation or maintenance
activities by the Grantor; will agree to indemnify, defend and save Grantar
harmless from any liability to any third parties as a result of Grantee's use
of this Easement; and will agree that the maintenance of the Easement
Area is the responsibility of the Grantee and that restoration of the
Easement Area due to pipeline repair will be at the cost of the Grantee.
-18-
Item V-J.2.
ORDINANCES/RESOL UTIONS ITEM # 60343
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY
CONSENT:
Resolution to AUTHORIZE the issuance, sale and execution of $20-
Million Series 2010A Storm Water Utility Revenue Bonds and
Refunding Revenue Bonds Series 2010B, not to exceed $8 Million re
storm water utility system improvements
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
October 12, 2010
RESOLUTION OF THE CITY OF VIRGINIA BEACH, VIRGINIA, TO
PROVIDE FOR THE ISSUANCE AND SALE OF STORM WATER UTILITY
REVENUE BONDS, SERIES 2010A, IN AN AGGREGATE PRINCIPAL
AMOUNT OF $20,000,000, AND STORM WATER UTILITY REFUNDING
REVENUE BONDS, SERIES 2010B, 1N AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $8,000,000, PROVIDING FOR THE FORM,
DETAILS AND PAYMENT THEREOF TO FINANCE AND REFINANCE
THE COST OF IMPROVEMENTS TO THE CITY'S STORM WATER
UTILITY SYSTEM AND AUTHORIZING THE EXECUTION AND
DELIVERY OF CERTAIN DOCUMENTS RELATED TO SUCH FINANCING
WHEREAS, the Council (the "Council") of the City of Virginia Beach, Virginia (the
"City"), desires to issue its storm water utility revenue and refunding bonds to finance and
refinance the costs of improvements and extensions to its storm water utility system (the
"System"), including the redemption of all or a portion of the City's outstanding Storm Water
Utility Revenue Bonds, Series 2000 (the "Series 2000 Bonds"), and to pay costs of issuing its
bonds;
WHEREAS, the Council adopted ordinances on May 12, 1998 (the "1998 Ordinance"),
May 1 l, 1999 (the "1999 Ordinance"), May 9, 2000 (the "2000 Ordinance"), May 15, 2001 (the
"2001 Ordinance"), May 13, 2003 (the "2003 Ordinance"), May 11, 2004 (the "2004
Ordinance"), May 10, 2005 (the "2005 Ordinance"), and May 9, 2006 (the "2006 Ordinance")
(collectively, "the Ordinances"), authorizing the issuance of the City's storm water utility
revenue bonds in the amounts of $9,100,000, $5,300,000, $3,900,000, $200,000, $580,000,
$510,000, $2,420,000, and $2,510,000, respectively;
WHEREAS, the Council has determined that it is in the best interests of the City to
undertake the above-described financing by the issuance of $20,000,000 in maximum aggregate
principal amount of its storm water utility revenue bonds, pursuant to the Ordinances
($5,028,440 authorized by the 1998 Ordinance, $5,300,000 authorized by the 1999 Ordinance,
$3,900,000 authorized by the 2000 Ordinance, $200,000 authorized by the 2001 Ordinance,
$580,000 authorized by the 2003 Ordinance, $510,000 authorized by the 2004 Ordinance,
$2,420,000 authorized by the 2005 Ordinance, and $2,061,560 authorized by the 2006
Ordinance), this Resolution and applicable law;
WHEREAS, the Council desires to authorize the City Manager, in collaboration with
Government Finance Associates, Inc., the City's financial advisor (the "Financial Advisor"), to
determine whether to designate a portion of such storm water utility revenue bonds as "Build
America Bonds" within the meaning of Section 54AA of the Internal Revenue Code of 1986, as
amended (the Code);
WHEREAS, the Council desires to refund all or a portion of the City's Series 2000
Bonds, by the issuance of up to $8,000,000 in maximum aggregate principal amount of its storm
water utility refunding bonds; and
1
WHEREAS, there have been presented to this meeting or otherwise made available the
following documents and draft documents in connection with the undertaking of the above-
described financing and refinancing and the issuance and sale of such bonds:
(a) Agreement of Trust dated as of January 1, 2000, between the City and
U.S. Bank National Association (as successor to First Union National
Bank), as trustee (the "Trustee"), as previously supplemented (the "Master
Agreement of Trust");
(b) Draft of Second Supplemental Agreement of Trust dated as of November
1, 2010, between the City and the Trustee (the "Second Supplemental
Agreement" and, together with the Master Agreement of Trust, the
"Agreement of Trust"), pursuant to which such bonds will be issued, and
including the forms of such bonds as exhibits thereto;
(c) Draft of Notice of Sale to be dated on or about October 27, 2010, to
advertise such storm water utility revenue bonds for sale, and draft of
Notice of Sale to be dated on or about October 27, 2010, to advertise such
storm water utility refunding revenue bonds for sale (collectively, the
"Notice of Sale");
(d) Draft of Preliminary Official Statement to be dated on or about October
27, 2010 (the "Preliminary Official Statement"), relating to the public
offering of such bonds; and
(e) Draft of Continuing Disclosure Agreement dated as of November 1, 2010
(the "Continuing Disclosure Agreement"), pursuant to which the City will
agree to undertake continuing disclosure obligations pursuant to Rule
15c2-12 promulgated by the Securities and Exchange Commission, as
amended (the "Rule"), for the benefit of the holders of such bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
VIRGINIA BEACH, VIRGINIA:
1. Authorization of Bonds and Use of Proceeds. The City hereby authorizes the
issuance and sale of its storm water utility revenue bonds and its storm water utility refunding
revenue bonds in an aggregate principal amount not to exceed $28,000,000 (the "Bonds"), in
one or more series, pursuant to the Constitution and statutes of the Commonwealth of Virginia,
including the City Charter and the Public Finance Act of 1991, to finance the costs of
improvements and extensions to the System, to redeem all or a portion of the Series 2000 Bonds,
and to pay costs of issuing the Bonds.
2. Second Supplemental A~reement. The City Manager is hereby authorized and
directed to execute and deliver the Second Supplemental Agreement, which shall be in
substantially the form presented to this meeting, which is hereby approved, with such
completions, omissions, insertions and changes not inconsistent with this Resolution as the City
2
Manager may approve, including such changes as may be required if a portion of the storm water
utility revenue bonds are not designated as "Build America Bonds" as described in Section 3 of
this Resolution. The execution of the Second Supplemental Agreement by the City Manager
shall constitute conclusive evidence of his approval of any such completions, omissions,
insertions and changes.
3. Bond Details. The Bonds shall be designated "Storm Water Utility Revenue
Bonds, Series 2010A," and "Storm Water Utility Refunding Revenue Bonds, Series 2010B," or
such other designations as may be approved by the City Manager, shall be dated the date
determined by the City Manager, shall be in registered form, in denominations of $5,000 and
multiples thereof, and shall be numbered RA-1 or RB-1 upward. Each Bond shall bear interest at
such rate as shall be determined at the time of sale, payable semiannually on dates determined by
the City Manager, calculated on the basis of a 360-day year of twelve 30-day months. The City
Manager is authorized to determine, in collaboration with the Financial Advisor, to designate a
subseries of the Series 2010A Bonds as "Build America Bonds" within the meaning of Section
54AA of the Code and a subseries of the Series 2010A Bonds as tax-exempt obligations.
The Council authorizes the issuance and sale of the Bonds in such principal amounts and
upon such terms as shall be determined by the City Manager in collaboration with the Financial
Advisor; provided that the Bonds shall (a) have a true interest cost not exceeding 5.00% per year
(taking into account any original issue discount or premium and taking into account direct
subsidy payments from the United States allocable to any Bonds designated as "Build America
Bonds"), (b) have a final maturity no later than the year 2035, (c) be sold at a price not less than
100% of the aggregate principal amount thereof, and (d) be in an aggregate principal amount not
exceeding $28,000,000.
4. Preparation and Delivery of the Bonds. The Mayor is hereby authorized and
directed to execute the Bonds by manual or facsimile signature, the City Clerk is hereby
authorized and directed to countersign the Bonds and affix the seal of the City thereto or cause a
facsimile thereof to be printed thereon, and the officers of the City are hereby authorized and
directed to deliver the Bonds to the Registrar (as defined in the Agreement of Trust) for
authentication and delivery to the purchaser.
5. Pled~e of Securitv. The Bonds shall be limited obligations of the City, payable
solely from Pledged Revenues (as defined in the Agreement of Trust) and the funds created by
the Agreement of Trust and pledged to the payment of the Bonds, and nothing in the Bonds or
the Agreement of Trust shall be deemed to create or constitute an indebtedness or pledge of the
full faith and credit of the Commonwealth of Virginia or any political subdivision thereof,
including the City.
6. Sale of Bonds. The Bonds shall be sold through two competitive sales. The City
Manager, in collaboration with the Financial Advisor, is authorized and directed to take all
proper steps to finalize and distribute, in accordance with standard practices of municipal
securities, the Notice of Sale, which shall be in substantially the form presented to this meeting,
which is hereby approved, with such completions, omissions, insertions and changes as the City
Manager may approve to the reflect the terms of the Bonds determined in accordance with this
3
Resolution. The City Manager is authorized to receive bids for the Bonds and to award the
Bonds to the bidder providing the lowest true interest cost, subject to the limitations set forth in
Section 3 of this Resolution. The actions of the City Manager in selling the Bonds by
competitive sale shall be conclusive, and no further action with respect to the sale and issuance
of the Bonds shall be necessary on the part of the Council.
7. Official Statement. The City Manager is hereby authorized and directed to
approve the distribution of the Preliminary Official Statement to potential purchasers of the
Bonds with such completions, omissions, insertions and other changes not inconsistent with this
Resolution as the City Manager, in collaboration with the Financial Advisor and with Kaufman
& Canoles, a Professional Corporation, as bond counsel for the Bonds (`Bond Counsel"), may
consider appropriate to complete it as an official statement in final form. The City Manager is
authorized, on behalf of the City, to deem the Preliminary Official Statement and the final
Official Statement to be "final" as of their dates within the meaning of the Rule, except for the
omission from the Preliminary Official Statement of certain pricing and other information
permitted to be omitted pursuant to the Rule. The City Manager is further authorized, on behalf
of the City, to execute the final Official Statement. The distribution of the Preliminary Official
Statement and the execution of the final Official Statement by the City Manager shall be
conclusive evidence that each has been approved and deemed final.
8. Continuin~ Disclosure. The City Manager is hereby authorized and directed to
execute and deliver the Continuing Disclosure Agreement, which shall be in substantially the
form presented to this meeting, which is hereby approved, with such completions, omissions,
insertions and changes not inconsistent with this Resolution as the City Manager may approve.
The execution of the Continuing Disclosure Agreement by the City Manager shall constitute
conclusive evidence of his approval of any such completions, omissions, insertions and changes.
9. Non-Arbitra~e Certificate and Elections. Such officers of the City as may be
requested by Bond Counsel are authorized and directed to (a) execute appropriate certificates
setting forth the expected use and investment of the proceeds of the Bonds to show that such
expected use and investment will not violate the provisions of Section 148 of the Code, and the
regulations thereunder, applicable to "arbitrage bonds," (b) make any elections that such officers
deem desirable, in consultation with Bond Counsel, regarding any provision requiring rebate to
the United States of "arbitrage profits" earned on investment of proceeds of the Bonds, and (c)
file Internal Revenue Service Form 8038-G and, with respect to any Bonds designated as "Build
America Bonds," Form 8038-B. The foregoing shall be subject to the advice, approval and
direction of Bond Counsel.
10. Further Actions. All other actions of officers of the City that are in conformity
with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the
Bonds, and the plan of financing and refinancing related thereto, are hereby approved and
ratified. The officers of the City are authorized and directed to execute and deliver such further
certificates and instruments and to take all such further actions as may be considered necessary
or desirable in connection with the issuance, sale and delivery of the Bonds.
11. Effective Date. This Resolution shall take effect immediately.
4
Requires an affirmative vote by a majority of all of the members of City Council.
APPROVED AS TO CONTENT: APPROVED AS TO LEGAL
SUFFICIENCY:
~
~r
Finance D art ent ~G~~;u,u,~ ~- ~J~~,~~j;Kf City Att ' ice
_7
CAl 1616
R-1
29 September 2010
ADOPTED: October 12, 2010
CERTIFICATE
The undersigned Clerk of the City Council (the "Council") of the City of Virginia Beach,
Virginia (the "City"), hereby certifies that:
1. A meeting of the Council was duly called and held on October 12, 2010 (the
"Meeting").
2 Attached hereto is a true, correct and complete copy of a resolution (the
"Resolution") of the Council entitled "Resolution of the City of Virginia Beach, Virginia, to
Provide for the Issuance and Sale of Storm Water Utility Revenue Bonds, Series 2010A, in an
aggregate principal amount of $20,000,000, and Storm Water Utility Refunding Revenue Bonds,
Series 2010B, in an Aggregate Principal Amount Not to Exceed $8,000,000, Providing for the
Form, Details and Payment Thereof to Finance and Refinance the Cost of Improvements to the
City's Storm Water Utility System and Authorizing the Execution and Delivery of Certain
Documents Related to Such Funancing," as recorded in full in the minutes of the Meeting and
duly adopted by a majority of the members of the Council present and voting during the
Meeting.
3. A summary of the members of the Council present or absent at the Meeting, and
the recorded vote with respect to the Resolution, is set forth below:
Votin~
Member Name
Present Absent
Yes No Abstaining
William D. Sessoms, Jr., Mayor
Louis R. Jones, Vice Mayor
Robert M. Dyer
Harry E. Diezel
Glenn R. Davis
James L. Wood
John E. Uhrin
Barbara M. Henley
Bill R. DeSteph
Rita Sweet Bellitto
Rosemary Wilson
X
X
x
X
~
_x
X
X
x
X
X
X
X
X
X
~_
X
x
x
X
4. The Resolution has not been repealed, revoked, rescinded or amended, and is in
full force and effect on the date hereof.
WITNESS MY HAND and the seal of the City of Virginia Beach, Virginia, this day
of October, 2010.
Clerk, Council of the
City of Virginia Beach, Virginia
(SEAL)
6
-- pR,AFT
~
SECOND SUPPLEMENTAL AGREEMENT OF TRUST
between
CITY OF VIRGINIA BEACH, VIRGINIA
and
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
Dated as of November 1, 2010
DRAFT 9/29/10
TABLE OF CONTENTS
ARTICLE I
SECOND SUPPLEMENTAL AGREEMENT
Section 2.101. Authorization of Second Supplemental Agreement ...............................................1
Section 2.102. Definitions ...............................................................................................................2
Section 2.103. Reference to Articles and Sections .........................................................................3
ARTICLE II
AUTHORIZATION, DETAILS AND FORM OF SERIES 2010 BONDS
Section 2.201. Authorization of Series 2010 Bonds ....................................................................... 3
Section 2.202. Details of Series 2010 Bonds .................................................................................. 3
Section 2.203. Form of Series 2010 Bonds ..................................................................................... 5
Section 2.204. Securities Depository Provisions ............................................................................ 5
Section 2.205. Registrar .................................................................................................................. 6
Section 2.206. Delivery of Series 2010 Bonds ............................................................................... 6
ARTICLE III
REDEMPTION OF SERIES 2010 BONDS
Section 2.301. Redemption Dates and Prices .................................................................................6
Section 2.302. Selection of Series 2010 Bonds for Redemption ....................................................8
Section 2.303. Notice of Redemption .............................................................................................9
ARTICLE IV
APPLICATION OF PROCEEDS OF SERIES 2010 BONDS
Section 2.401. Application of Proceeds of Series 2010 Bonds and Related Amounts ...................9
ARTICLE V
FUNDS AND ACCOUNTS
Section 2.501. 2010 Project Account ............................................................................................10
Section 2.502. Series 2010 Debt Service Reserve Account ..........................................................10
Section 2.503. Refunding of Series 2000 Bonds ..........................................................................10
t~RTICLE VI
SECURITY FOR SERIES 2010 BONDS
Section 2.601. Security for Series 2010 Bonds .............................................................................11
ARTICLE VII
ARBITRAGE REBATE FUND
Section 2.701. Rebate Requirement ..............................................................................................1 l
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DRAFT 9/29/10
Section 2.702. Calculation and Payment of Series 2010 Rebate Obligation ................................11
Section 2.703. Reports by Trustee ................................................................................................12
ARTICLE VIII
MISCELLANEOUS
Section 2.801. Limitations on Use of Proceeds ............................................................................12
Section 2.802. Limitation of Rights ..............................................................................................13
Section 2.803. Severability ...........................................................................................................14
Section 2.804. Successors and Assigns .........................................................................................14
Section 2.$O5. Applicable Law .....................................................................................................14
Section 2.806. Counterparts ..........................................................................................................14
Exhibit A-1 Form of Series 2010A-1 Bond
Exhibit A-2 Form of Series 2010A-2 Bond
Exhibit B Form of Series 2010B Bond
ii
DRAFT 9/29/10
THIS SECOND SUPPLEMENTAL AGREEMENT OF TRUST dated as of the 1 st day
of November, 2010 (the "Second Supplemental Agreement"), by and between the City of
Virginia Beach, Virginia, a political subdivision of the Commonwealth of Virginia (the "City"),
and U.S. Bank National Association, Richmond, Virginia, a national banking association
organized under the laws of the United States of America, with a corporate trust office in
Richmond, Virginia, as successor trustee to First Union National Bank (in such capacity,
together with any successor in such capacity, herein called the "Trustee"), provides:
WHEREAS, the City and First Union National Bank entered into an Agreement of Trust
dated as of January 1, 2000 (the "Agreement of Trust"), to provide for financing improvements
and extensions to the System (as defined in the Agreement of Trust) by the issuance of bonds
payable solely from Pledged Revenues (as defined in the Agreement of Trust);
WHEREAS, within the limitations of and in compliance with the Agreement of Trust, the
City issued an initial series of Bonds under the Agreement of Trust in the aggregate principal
amount of $10,000,000 (the "Series 2000 Bonds"), to finance the costs of expansion and
improvements to the System;
WHEREAS, within the limitations of and in compliance with the Agreement of Trust, the
City has determined to issue additional Bonds under the Agreement of Trust in the aggregate
principal amount of $ , including the City's $ Storm Water Utility
Revenue Bonds, Series 2010A-1 (Tax-Exempt) (the "Series 2010A-1 Bonds"), its $
Storm Water Utility Revenue Bonds, Series 2010A-2 (Taxable-Build America Bonds) (the
"Series 2010A-2 Bonds"), and its $ Storm Water Utility Refunding Revenue
Bonds, Series 2010B (Tax-Exempt) (the "Series 2010B Bonds") (collectively, the "Series 2010
Bonds"), to finance and refinance the costs of improvements and expansions to the System,
including the redemption of the City's outstanding Series 2000 Bonds, and to pay costs
associated with issuing the Series 2010 Bonds; and
WHEREAS, the City has taken all necessary action to make the Series 2010 Bonds, when
authenticated by the Trustee and issued by the City, valid and binding limited obligations of the
City and to constitute this Second Supplemental Agreement a valid and binding agreement
authorizing and providing for the details of the Series 2010 Bonds;
NOW THEREFORE, in consideration of the premises and the mutual covenants and
agreements hereinafter contained, the parties hereto agree, as follows:
ARTICLE I
SECOND SUPPLEMENTAL AGREEMENT
Section 2.101. Authorization of Second Su~plemental Agreement.
This Second Supplemental Agreement is authorized and executed by the City and
delivered to the Trustee pursuant to and in accordance with Articles III and XII of the Agreement
of Trust. All terms, covenants, conditions and agreements of the Agreement of Trust shall apply
1
DRAFT 9/29/10
with full force and effect to the Series 2010 Bonds and to the holders thereof, except as otherwise
provided in this Second Supplemental Agreement.
Section 2.102. Definitions.
Except as otherwise amended or defined in this Second Supplemental Agreement, terms
defined in the Agreement of Trust are used in this Second Supplemental Agreement with the
meanings assigned to them in the Agreement of Trust.
(a) Amended Definition. The following definition set forth in the Agreement of
Trust shall be amended by deleting such definition in its entirety and in place thereof inserting
the following:
"Business Day" shall mean any day on which banking business is transacted, but
not including a Saturday, Sunday or legal holiday, or any day on which banking institutions are
authorized by law to close in Richmond, Virginia.
(b) Added Definitions. In addition, the following words as used in this Second
Supplemental Agreem,~nt shall have the following meanings unless a different meaning clearly
appears from the context:
"2010 Project" shall mean improvements to and expansions of the System
financed with the proceeds of the Series 2010A-1 Bonds and the Series 2010A-2 Bonds.
"Letter of Representations" shall mean the Blanket Letter of Representations
dated June 17, 1996, from the City to the Securities Depository and any amendments thereto or
successor agreements between the City and any successor Securities Depository, relating to a
book-entry system to be maintained by the Securities Depository with respect to the Series 2010
Bonds. Notwithstanding any provision of the Agreement of Trust, including Article XII
regarding amendments, the Trustee may enter into any such amendment or successor agreement
without the consent of Bondholders.
"Rebate Amount Certificate" shall have the meaning set forth in Section 2.701.
"Registrar" shall mean the City Treasurer or any successors serving as such
hereunder.
"Second Supplemental Agreement" shall mean this Second Supplemental
Agreement of Trust between the City and the Trustee, which supplements and amends the
Agreement of Trust, as amended.
"Securities Depository" shall mean The Depository Trust Company, a corporation
organized and existing under the laws of the State of New York, and any other securities
depository for the Series 2010 Bonds appointed pursuant to Section 2.203, and their successors.
2
DRAFT 9/29/10
"Series 2010 Bonds" shall mean, collectively, the Series 2010A-1 Bonds, the
Series 2010A-2 Bonds and the Series 2010B Bonds, authorized to be issued pursuant to this
Second Supplemental Agreement.
"Series 2010 Debt Service Reserve Account" shall mean the Series 2010 Debt
Service Reserve Account established in Section 2.502 of this Second Supplemental Ageement.
"Series 2010 Debt Service Reserve Requirement" for the Series 2010 Bonds, or a
subseries thereof, shall be an amount equal to $ ; which is the least of (a) the maximum
principal and interest due on such Series 2010 Bonds in the current or any future Fiscal Year, (b)
10% of the original stated principal amount of such Series 2010 Bonds (or 10% of the issue price
of such Series 2010 Bonds if required by the Code) or (c) 125% of the average annual principal
and interest due on such Series 2010 Bonds in the current and each future Fiscal Year.
"Series 2010A-1 Bonds" shall mean the City's $ Storm Water Utility
Revenue Bonds, Series 2010A-1 (Tax-Exempt).
"Series 2010A-2 Bonds" shall mean the City's $ Storm Water Utility
Revenue Bonds, Series 2010A-2 (Taxable-Build America Bonds).
"Series 2010B Bonds" shall mean the City's $ Storm Water Utility
Refunding Revenue Bonds, Series 2010B (Tax-Exempt).
Section 2.103. Reference to Articles and Sections.
Unless otherwise indicated, all references herein to particular articles or sections are
references to articles or sections of this Second Supplemental Agreement.
ARTICLE II
AUTHORIZATION, DETAILS AND FORM OF SERIES 2010 BONDS
Section 2.201. Authorization of Series 2010 Bonds.
There are hereby authorized to be issued the Series 2010A-1 Bonds, the Series 2010A-2
Bonds and the Series 2010B Bonds in the aggregate principal amount of $ to (a)
finance the Cost of the 2010 Project, which is hereby authorized, (b) redeem the outstanding
Series 2000 Bonds and (c) finance costs associated with issuing the Series 2010 Bonds. The
Series 2010 Bonds shall be issued pursuant to the Agreement of Trust and this Second
Supplemental Agreement.
Section 2.202. Details of Series 2010 Bonds.
(a) The Series 2010A-1 Bonds shall be designated "Storm Water Utility Revenue
Bonds, Series 2010A-1 (Tax-Exempt)," shall be dated the date of their issuance and delivery,
shall be issuable only as fully registered bonds in denominations of $5,000 and multiples thereof,
shall be numbered R(2010A-1)-1 upward and shall bear interest at the rates, payable
3
DRAFT 9/29/10
semiannually on May 15 and November 15, beginning May 15, 2011, until their final payment or
maturity, and shall mature on November 15 in the years and the amounts, set forth as follows:
Principal Interest Principal Interest
Maturitv Amount Rate Maturitv Amount Rate
(b) The Series 2010A-2 Bonds shall be designated "Storm Water Utility Revenue
Bonds, Series 2010A-2 (Taxable-Build America Bonds)," shall be dated the date of their
issuance and delivery, shall be issuable only as fully registered bonds in denominations of $5,000
and multiples thereof, shall be numbered R(2010A-2)-1 upward and shall bear interest at the
rates, payable semiannually on May 15 and November 15, beginning May 15, 2011, until their
final payment or maturity, and shall mature on November 15 in the years and the amounts, set
forth as follows:
Principal Interest Principal Interest
Maturitv Amount Rate Maturitv Amount Rate
(c) The Series 2010B Bonds shall be designated "Storm Water Utility Refunding
Revenue Bonds, Series 2010B (Tax-Exempt)," shall be dated the date of their issuance and
delivery, shall be issuable only as fully registered bonds in denominations of $5,000 and
multiples thereof, shall be numbered RB-1 upward and shall bear interest at the rates, payable
semiannually on May 15 and November 15, beginning May 15, 2011, until their final payment or
maturity, and shall mature on November 15 in the years and the amounts, set forth as follows:
Principal Interest Principal Interest
Maturitv Amount Rate Maturitv Amount Rate
Each Series 2010 Bond shall bear interest (a) from its date, if such Series 2010 Bond is
authenticated prior to the first interest payment date, or (b) otherwise from the interest payment
date that is, or immediately precedes, the date on which such Series 2010 Bond is authenticated;
provided, however, that if at the time of authentication of any Series 2010 Bond payment of
interest is in default, such Series 2010 Bond shall bear interest from the date to which interest has
been paid.
4
DRAFT 9/29/10
Principal of and premium, if any, on the Series 2010 Bonds shall be payable to the
registered owners upon the surrender of Series 2010 Bonds at the office of the Registrar. Interest
on the Series 2010 Bonds shall be payable by check or draft mailed to the registered owners at
their addresses as they appear on the fifteenth day of the month preceding the interest payment
date on the registration books kept by the Registrar; provided, however, if the Series 2010 Bonds
are registered in the name of a Securities Depository or its nominee as registered owner or at the
option of a registered owner of at least $1,000,000 of Series 2010 Bonds, payment shall be made
by wire transfer pursuant to the wire instructions received by the Registrar from such registered
owner. Principal, premium, if any, and interest shall be payable in lawful money of the United
States of America.
Section 2.203. Form of Series 2010 Bonds.
The Series 2010 Bonds shall be in substantially the forms set forth in Exhibit A-1,
Exhibit A-2 and Exhibit B, with such appropriate variations, omissions and insertions as are
permitted or required by the Agreement of Trust and this Second Supplemental Agreement.
Section 2.204. Securities Depository Provisions.
Initially, one Series 2010 Bond certificate for each maturity of the Series 2010 Bonds will
be issued and registered to the Securities Depository, or its nominee. The City has entered into a
Letter of Representations relating to a book-entry system to be maintained by the Securities
Depository with respect to the Series 2010 Bonds.
In the event that (a) the Securities Depository determines not to continue to act as a
securities depository for the Series 2010 Bonds by giving notice to the Registrar and the City
discharging its responsibilities hereunder or (b) the City in its sole discretion determines (1) that
beneficial owners of Series 2010 Bonds shall be able to obtain certificated Series 2010 Bonds or
(2) to select a new Securities Depository, then the City shall attempt to locate another qualified
securities depository to serve as Securities Depository or authenticate and deliver certificated
Series 2010 Bonds to the beneficial owners or to the Securities Depository participants on behalf
of beneficial owners substantially in the forms provided for in Exhibit A-1, Exhibit A-2 and
Exhibit B; provided, however, that such form shall provide for interest on the Series 2010 Bonds
to be payable (i) from its date, if it is authenticated prior to May 15, 2011, or (ii) otherwise from
the May 15 or November 15 that is, or immediately precedes, the date on which it is
authenticated (unless payment of interest thereon is in default, in which case interest on such
Series 2010 Bonds shall be payable from the date to which interest has been paid). In delivering
certificated Series 2010 Bonds, the Registrar shall be entitled to rely conclusively on the records
of the Securities Depository as to the beneficial owners or the records of the Securities
Depository participants acting on behalf of beneficial owners. Such certificated Series 2010
Bonds will be registrable, transferable and exchangeable as set forth in Section 204 of the
Agreement of Trust.
So long as.there is a Securities Depository for the Series 2010 Bonds (A) it or its nominee
shall be the registered owner of the Series 2010 Bonds, (B) notwithstanding anything to the
5
DRAFT 9/29/10
contrary in this Second Supplemental Agreement, determinations of persons entitled to payment
of principal, premium, if any, and interest, transfers of ownership and exchanges, and receipt of
notices shall be the responsibility of the Securities Depository and shall be effected pursuant to
rules and procedures established by such Securities Depository, (C) the City and the Registrar
shall not be responsible or liable for maintaining, supervising or reviewing the records
maintained by the Securities Depository, its participants or persons acting through such
participants, (D) references in this Second Supplemental Agreement to registered owners of the
Series 2010 Bonds shall mean such Securities Depository or its nominee and shall not mean the
beneficial owners of the Series 2010 Bonds and (E) in the event of any inconsistency between
the provisions of this Second Supplemental Agreement, other than those set forth in this
paragraph and the preceding paragraph, and the provisions of the Letter of Representations, such
provisions of the Letter of Representations shall control.
Section 2.205. Re i~s~ trar.
The selection of the City Treasurer as Registrar is approved.
Section 2.206. Deliverv of Series 2010 Bonds.
The Registrar shall authenticate and deliver the Series 2010 Bonds when there shall have
been delivered to the Registrar a Request for Authentication stating that there have been filed
with or delivered to the City Clerk all items required by Section 304 of the Agreement of Trust.
ARTICLE III
REDEMPTION OF SERIES 2010 BONDS
below:
Section 2.301. Redemption Dates and Prices.
The Series 2010 Bonds may not be called for redemption by the City except as provided
(a) Optional Redemption. Series 2010A-1 Bonds maturing on or before
November 15, 2020, are not subject to optional redemption prior to their stated maturities. Series
2010A-1 Bonds maturing on or after November 15, 2021, are subject to redemption at the option
of the City beginning on November 15, 2020, in whole or in part at any time (in any multiple of
$5,000), without premium, upon payment of the principal amount of the Series 2010A-1 Bonds
so redeemed plus interest accrued to the redemption date.
Except in accordance with the extraordinary optional redemption provisions
described below, Series 2010A-2 Bonds maturing on or before November 15, 2020, are not
subject to optional redemption prior to their stated maturities. Series 2010A-2 Bonds maturing
on or after November 15, 2021, are subject to redemption at the option of the City beginning on
November 15, 2020, in whole or in part at any time (in any multiple of $5,000), without
premium, upon payment of the principal amount of the Series 2010A-2 Bonds so redeemed plus
interest accrued to the redemption date.
6
DRAFT 9/29/10
Series 2010B Bonds maturing on or before November 15, 2020, are not subject to
optional redemption prior to their stated maturities. Series 2010B Bonds maturing on or a$er
November 15, 2021, are subject to redemption at the option of the City beginning on November
15, 2020, in whole or in part at any time (in any multiple of $5,000), without premium, upon
payment of the principal amount of the Series 2010B Bonds so redeemed plus interest accrued to
the redemption date.
(b) Extraordinar~ptional Redem tp ion. Series 2010A-2 Bonds are subject to
redemption at the option of the City on any date prior to their maturity, in whole or in part (in
any multiple of $5,000), upon the occurrence of an Extraordinary BAB Event (as defined below),
at a redemption price equal to the greater of: (i) 100% of the principal amount of the Series
2010A-2 Bonds to be redeemed, and (ii) the sum of the present value of the remaining scheduled
payments of principal and interest to the maturity date of the Series 2010A-2 Bonds to be
redeemed, not including any portion of those payments of interest accrued and unpaid as of the
date on which the Series 2010A-2 Bonds are to be redeemed, discounted to the date on which the
Series 2010A-2 Bonds are to be redeemed on a semi-annual basis, assuming a 360-day year
consisting of twelve 30-day months, at the Treasury Rate (as defined below), plus 100 basis
points, plus, in each case, accrued interest on the Series 2010A-2 Bonds to be redeemed to the
redemption date.
An "Extraordinary BAB Event" will have occurred if a material adverse change
has occurred to Section 54AA or 6431 of the Code (as such Sections were added by Section
1531 of the American Recovery and Reinvestment Act, pertaining to "Build America Bonds") or
there is any guidance published by the Internal Revenue Service or the United States Treasury
with respect to such Sections or any other determination by the Internal Revenue Service or the
United States Treasury (which determination is not the result of any act or omission by the City
to satisfy the requirements to qualify to receive the Federal Subsidy (as hereinafter defined)
pursuant to which the subsidy payment from the United States Treasury) pursuant to which the
subsidy payment from the United States Treasury equal to 35% of the interest payable on the
Series 2010A-2 Bonds (the "Federal Subsidy") is reduced or eliminated.
The "Treasury Rate" means, with respect to any redemption date for a particular
Series 2010A-2 Bond, the yield to maturity as of such redemption date of United States Treasury
securities with a constant maturity excluding inflation indexed securities (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519) that has become
publicly available at least two business days prior to the redemption date or, if such Statistical
Release is no longer published, any publicly available source of similar market data) most nearly
equal to the period from the redemption date to the maturity date of such Series 2010A-2 Bond
to be redeemed; provided, however, that if the period from the redemption date to such maturity
date is less than one year, the weekly average yield on actually traded United States Treasury
securities adjusted to a constant maturity of one year will be used.
(c) Mandatary Redemption. [Series 2010A-1 Bonds maturing on November
15, 20_, are required to be redeemed on November 15 in years and amounts upon payment of
100% of the principal amount. thereof plus interest accrued to the redemption date, as follows:
7
DRAFT 9/29/10
Year
Amount
Series 2010A-2 Bonds maturing on November 15, 20 , are required to be
redeemed on November 15, in years and amounts upon payment of 100% of the principal
amount thereof plus interest accrued to the redemption date, as follows:
Year Amount
Series 2010B Bonds maturing on November 15, 20_, are required to be
redeemed on November 15, in years and amounts upon payment of 100% of the principal
amount thereof plus interest accrued to the redemption date, as follows:
Year Amount
The amount of Series 2010 Bonds to be redeemed pursuant to this subsection may
be reduced in accordance with the provisions of Section 605 of the Agreement of Trust.~
Section 2.302. Selection of Series 2010 Bonds for Redemption.
If less than all of the Series 2010 Bonds of a series are called for redemption, the Series
2010 Bonds of such series to be redeemed shall be selected by the City's Director of Finance in
such a manner as he or she may determine to be in the best interest of the City.
If less than all of the Series 2010A-1 Bonds or Series 2010B Bonds of a particular
maturity of such series are called for redemption, the bonds to be redeemed shall be selected by
DTC or any successor securities depository pursuant to its rules and procedures or, if the book-
entry system is discontinued, by the Registrar by lot in such manner as the Registrar in its
discretion may determine.
If less than all of the Series 2010A-2 Bonds of a particular maturity are called for
redemption, the particular Series 2010A-2 Bonds to be redeemed will be selected on a pro-rata
basis. With respect to such Series 2010A-2 Bonds called for redemption, "pro rata" is
determined, in connection with any mandatory sinking fund redemption or any optional
8
DRAFT 9/29/10
redemption in part, by multiplying the principal amount of such maturity to be redeemed on the
applicable redemption date by a fraction, the numerator of which is equal to the principal amount
of the Series 2010A-2 Bond of such maturity owned by the registered owner, and the
denominator of which is equal to the total amount of the Series 2010A-2 Bonds of such maturity
then outstanding immediately prior to such redemption date, and then rounding the product down
to the next lower integral multiple of $5,000; provided that the portion of any Series 2010A-2
Bonds to be redeemed are required to be in authorized denominations and all Series 2010A-2
Bonds of a maturity to remain outstanding following any redemption are required to be in
authorized denominations. Notwithstanding the foregoing, if the Series 2010A-2 Bonds are in
book-entry form at the time of such redemption, the City will instruct DTC to instruct the DTC
participants to select the specific Series 2010A-2 Bonds for redemption by lot within maturities
among Bondholders, and the City shall not have any responsibility to ensure that DTC or the
DTC participants properly select such Series 2010A-2 Bonds for redemption.
The portion of any Series 2010 Bond to be redeemed shall be in a minimum principal
amount of $5,000 or some multiple thereof. In selecting Series 2010 Bonds for redemption, each
Series 2010 Bond shall be considered as representing that number of Series 2010 Bonds which is
obtained by dividing the principal amount of such Series 2010 Bond by $5,000. If a portion of a
Series 2010 Bond shall be called for redemption, a new Series 2010 Bond in principal amount
equal to the unredeemed portion thereof shall be issued to the registered owner upon the
surrender thereof.
Section 2.303. Notice of Redemption.
Notice of redemption of Series 2010 Bonds shall be given in the manner set forth in
Section 402 of the Agreement of Trust.
ARTICLE IV
APPLICATION OF PROCEEDS OF SERIES 2010 BONDS
Section 2.401. Application of Proceeds of Series 2010 Bonds and Related Amounts.
Proceeds of the Series 2010 Bonds in the amount of $ ,[together with
$ in funds from the Series 2000 Debt Service Reserve Account and $ in City
funds,] shall be applied by the City Treasurer as follows:
(a) $ in proceeds of the Series 2010A-1 Bonds and $ in proceeds
of the Series 2010A-2 Bonds shall be deposited in the 2010 Project Account in the Construction
Fund to be used to pay the Cost of the 2010 Project.
(b) $ in proceeds of the Series 2010A-1 Bonds, $ in proceeds
of the Series 2010A-2 Bonds, and $ in proceeds of the Series 2010B Bonds shall be
deposited in the Series 2010 Project Account to be used to pay costs of issuance of the Series
2010 Bonds.
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DRAFT 9/29/10
(c) Proceeds of the Series 2010B Bonds in an amount not less than $ [, plus
$ in funds transferred from the Series 2000 Debt Service Reserve Account, plus
$ in City funds,] shall be deposited by the City in a special refunding expense
account, the Interest Account and an escrow account, all as provided in Section 306 of the
Agreement of Trust, to redeem the outstanding Series 2000 Bonds.
(d) (i) [$ in City funds shall be deposited in the Series 2010A Debt
Service Reserve Account of the Debt Service Reserve Fund.]
(ii) [$ in funds transferred from the Series 2000 Debt Service
Reserve Account, [plus $ in City funds,] shall be deposited in the Series 2010B Debt
Service Reserve Account of the Debt Service Reserve Fund.]
ARTICLE V
FUNDS AND ACCOUNTS
Section 2.501. 2010 Project Account.
There shall be established within the Construction Fund a special account entitled "2010
Project Account." Portions of the proceeds of the Series 2010 Bonds specified in Section
2.401(a) and (b) above shall be deposited in the 2010 Project Account. Money in the 2010
Project Account shall be used to pay Costs, including Costs of the 2010 Project and costs of
issuance of the Series 2010 Bonds, as evidenced by the requisitions provided by an Authorized
Representative of Public Utilities to the Director of Finance in accordance with the provisions of
Section 503 of the Agreement of Trust. Any balance remaining in the 2010 Project Account upon
completion of the 2010 Project shall be disposed of in accordance with the provisions of Section
504 of the Agreement of Trust.
Section 2.502. Series 2010 Debt Service Reserve Account.
There shall be established within the Debt Service Reserve Fund special accounts entitled
the "Series 2010A Debt Service Reserve Account" and the "Series 2010B Debt Service Reserve
Account" (collectively, the "Series 2010 Debt Service Reserve Account"), which will be funded
as set forth in Section 2.401(d). Money in the Series 2010 Debt Service Reserve Account shall
be used in accordance with the provisions of Section 607 of the Agreement of Trust.
Section 2.503. Refundin~ of Series 2000 Bonds.
There shall be established a special refunding expense account pursuant to Section
306(a)(1) of the Agreement of Trust and an escrow account pursuant to Section 306(a)(3) of the
Agreement of Trust and the moneys deposited into such accounts and into the Interest Account
in the Bond Fund pursuant to Section 306(a)(2) of the Agreement of Trust shall be used to
redeem the outstanding Series 2000 Bonds in accordance with Section 306 of the Agreement of
Trust on November [16], 2010, the date hereby designated as the redemption date for the Series
2000 Bonds to be redeemed. The Registrar is hereby directed to call the Series 2000 Bonds to be
redeemed for optional redemption on such date.
10
DRAFT 9/29/10
ARTICLE VI
SECURITY FOR SERIES 2010 BONDS
Section 2.601. Securitv for Series 2010 Bonds.
The Series 2010 Bonds shall be equally and ratably secured under the Agreement of Trust
with the Outstanding Bonds of any other series issued pursuant to Article III of the Agreement of
Trust, without preference, priority or distinction of any Bonds over any other Bonds, as provided
in the Agreement of Trust, other than any Subordinate Debt.
ARTICLE VII
ARBITRAGE REBATE FUND
Section 2.701. Rebate Requirement.
Except with respect to earnings on funds and accounts qualifying for exceptions to the
rebate requirement of Section 148 of the Code, the City shall pay the rebate obligations under the
Code (the "Rebate Amount") to the United States of America, as and when due, in accordance
with Section 148(fl of the Code, as provided in this Article, and shall retain records of all such
determinations until six years after final payment of the Series 2010 Bonds.
Section 2.702. Calculation and Pavment of Series 2010 Rebate Obli~ation.
(a) The City selects November 15 as the end of the bond year with respect to
the Series 2010 Bonds pursuant to Treasury Regulations Section 1.148-1.
(b) Within 30 days after the initial installment computation date, which is the
last day of the fifth bond year (November 15, 2015), unless such date is changed by the City
prior to the date that any amount with respect to the Series 2010 Bonds is paid or required to be
paid to the United States of America as required by Section 148 of the Code, and at least once
every five years thereafter, the City shall cause the Rebate Amount to be computed. Prior to any
payment of the Rebate Amount to the United States of America as required by Section 148 of the
Code. such computation (the "Rebate Amount Certificate") setting forth the Rebate Amount shall
be prepared or approved by (1) a person with experience in matters of governmental accounting
for Federal income tax purposes, (2) a bona fide arbitrage rebate calculation reporting service or
(3) Bond Counsel. A copy of each such Rebate Amount Certificate shall be filed in the records
of the City and with the Trustee.
(c) No later than 60 days after the initial installment computation date, the
City shall pay to the United States of America at least 90% of the Rebate Amount as set forth in
the Rebate Amount Certificate prepared with respect to such installment computation date. At
least once on or before 60 days after the installment computation date that is the fifth anniversary
of the initial installment computation date and on or before 60 days every fifth anniversary date
thereafter until final payment of the Series 2010 Bonds, the City shall pay to the United States of
America not less than the amount, if any, by which 90% of the Rebate Amount set forth in the
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DRAFT 9/29/10
most recent Rebate Amount Certificate exceeds the aggregate of all such payments theretofore
made to the United States of America pursuant to this Section. On or before 60 days after final
payment of the Series 2010 Bonds, the City shall pay to the United States of America the
amount, if any, by which 100% of the Rebate Amount set forth in the Rebate Amount Certificate
with respect to the date of final payment of the Series 2010 Bonds exceeds the aggregate of all
payments theretofore made pursuant to this Section. All such payments shall be made from any
legally available moneys of the City.
(d) Notwithstanding any provision of this Article to the contrary, no such
calculation or payment shall be made if the City receives and delivers to the Trustee an opinion
of Bond Counsel to the effect that (1) such payment is not required under the Code in order to
prevent the Series 2010 Bonds from becoming "arbitrage bonds" within the meaning of Section
148 of the Code or (2) such payment should be calculated and paid on some alternative basis
under the Code, and the City complies with such alternative basis.
Section 2.703. Reports bv Trustee.
The Trustee shall provide the City within 10 days after each November 15 and within 10
days after the final payment of the Series 2010 Bonds with such reports and information with
respect to earnings of amounts held by it under the Agreement of Trust and this Second
Supplemental Agreement as may be requested by the City in order to comply with the provisions
of this Article.
ARTICLE VIII
MISCELLANEOUS
Section 2.801. Limitations on Use of Proceeds.
The City covenants with the holders of the Series 2010 Bonds as follows:
(a) There are no Prior Bonds currently outstanding.
(b) The City shall not take or omit to take any action or approve the Trustee's
taking any action or making any investment or use of the proceeds of any Series 2010 Bonds
(including failure to spend the same with due diligence) the taking or omission of which would
cause the Series 2010 Bonds to be "arbitrage bonds" within the meaning of Section 148 of the
Code, including participating in any issue of obligations that would cause the Series 2010 Bonds
to be part of an "issue" of obligations that are arbitrage bonds, within the meaning of Treasury
Regulations Section 1.148-10 or successor regulation, or otherwise cause interest on the Series
2010A-1 Bonds or the Series 2010B Bonds to be includable in the gross income of the registered
owners under existing law. Without limiting the generality of the foregoing, the City shall
comply with any provision of law that may require the City at any time to rebate to the United
States of America any part of the earnings derived from the investment of gross proceeds of the
Series 2010 Bonds.
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DRAFT 9/29/10
(b) Barring unforeseen circumstances, the City shall not approve the use of
the proceeds from the sale of any Series 2010 Bonds otherwise than in accordance with the City's
"non-arbitrage" certificate or certificates delivered immediately prior to the issuance of the Series
2010 Bonds.
(c) The City shall not permit the proceeds of the Series 2010 Bonds to be used
in any manner that would result in either (1) 5% or more of such proceeds or the facilities being
financed or refinanced with such proceeds being considered as having been used in any trade or
business carried on by any person other than a governmental unit as provided in Sectian 141(b)
of the Code, (2) 5% or more of such proceeds or the facilities being financed or refinanced with
such proceeds being used with respect to any "output facility" (other than a facility for the
furnishing of water) within the meaning of Section 141(b)(4) of the Code, or (3) 5% or more of
such proceeds or the facilities being financed or refinanced with such proceeds being considered
as having been used directly or indirectly to make or finance loans to any person other than a
governmental unit, as provided in Section 141(c) of the Code.
(d) The City shall not take any other action that would adversely affect, and
shall take all action within its power necessary to maintain, the exclusion of interest on all Series
2010A-1 Bonds and Series 2010B Bonds from gross income for Federal income taxation
purposes; provided, however, that if the City receives an opinion of Bond Counsel that
compliance with any such covenant is not required to prevent the interest on the Series 2010A-1
Bonds or the Series 2010B Bonds from being includable in the gross income of the registered
owners thereof under existing law, the City need not comply with such restriction.
(e) The City shall not take or omit to take any action which would cause the
Series 2010A-2 Bonds to fail to qualify as a"Build America Bond" under Section 54AA(g) of
the Code, including, without limitation, any action that would (i) cause the Series 2010A-2
Bonds to fail to qualify as bonds the interest on which would (but for Section 54AA(g)) be
excludable from gross income for federal income tax purposes under Section 103 of the Code,
(ii) cause less than 100% of the excess of (A) the available project proceeds (as defined in
Section 54A of the Code to mean sale proceeds of such issue less not more than two percent of
such proceeds used to pay issuance costs plus investment proceeds thereon), over (B) the
amounts in a reasonably required reserve fund (within the meaning of Section 150(a)(3) of the
Code) with respect to such issue, to be used for capital expenditures, or (iii) cause the Series
2010A-2 Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code.
Section 2.802. Limitation of Ri~hts.
With the exception of rights herein expressly conferred, nothing expressed or mentioned
in or to be implied from this Second Supplemental Agreement or the Series 2010 Bonds is
intended or shall be construed to give to any person other than the parties hereto and the holders
of Series 2010 Bonds any legal or equitable right, remedy or claim under or in respect to this
Second Supplemental Agreement or any covenants, conditions and agreements herein contained
since this Second Supplemental Agreement and all of the covenants, conditions and agreements
hereof are intended to be and are for the sole and exclusive benefit of the parties hereto and the
holders of Series 2010 Bonds as herein provided.
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DRAFT 9/29/10
Section 2.803. Severabilitv.
If any provision of this Second Supplemental Agreement shall be held invalid by any
court of competent jurisdiction, such holding shall not invalidate any other provision hereof and
this Second Supplemental Agreement shall be construed and enforced as if such illegal provision
had not been contained herein.
Section 2.804. Successors and Assig___ns.
This Second Supplemental Agreement shall be binding upon, inure to the benefit of and
be enforceable by the parties and their respective successors and assigns.
Section 2.805. A~plicable Law.
This Second Supplemental Agreement shall be governed by the applicable laws of the
Commonwealth of Virginia.
Section 2.806. Counter~arts.
This Second Supplemental Agreement may be executed in several counterparts, each of
which shall be an original and all of which together shall constitute but one and the same
instrument.
[Signature page follows]
14
DRAFT 9/29/10
IN WITNESS WHEREOF, the City and the Trustee have caused this Second
Supplemental Agreement to be executed in their respective corporate names as of the date first
above written.
CITY OF VIRGINIA BEACH, VIRGINIA
By:
City Manager
U.S. BANK NATIONAL ASSOCIATION,
as successor Trustee
By:
15
Trust Officer
DRAFT 9/29/10
EXHIBIT A-1
Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer,
exchange, or payrnent, and any certificate is registered in the name of Cede & Co., or in such
other name as is requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has
an interest herein.
REGISTERED
R(2010A-1)-_
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
CITY OF VIRGINIA BEACH, VIRGINIA
REGISTERED
Storm Water Utility Revenue Bond
Series 2010A-1 (Tax-Exempt)
Interest Rate Maturity Date Dated Date CUSIP
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
DOLLARS
The City of Virginia Beach, Virginia (the "City"), for value received, hereby promises to
pay upon surrender hereof solely from the source and as hereinafter provided, to the registered
owner hereof, or registered assigns or legal representative, the principal sum stated above on the
maturity date stated above, subject to prior redemption as hereinafter provided, and to pay, solely
from such source, interest hereon semiannually on each May 15 and November 15, beginning
May 15, 2011, at the annual rate stated above, calculated on the basis of a 360-day year of twelve
30-day months. Interest is payable (a) from the dated date stated above, if this bond is
authenticated prior to May 15, 2011, or (b) otherwise from the May 15 or November 15 that is,
or immediately precedes, the date on which this bond is authenticated (unless payment of interest
hereon is in default, in which case this bond shall bear interest from the date to which interest has
been paid). Interest is payable by check or draft mailed to the registered owner hereof at its
address as it appears on the fifteenth day of the month preceding each interest payment date on
registration books kept by the City Treasurer, who has been appointed paying agent and registrar
(the "Registrar"); provided, however, that if the Bonds, as hereinafter defined, are registered in
the name of a securities depository or its nominee as registered owner or at the option of a
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DRAFT 9/29/10
registered owner of at least $1,000,000 of Bonds, payment will be made by wire transfer
pursuant to the most recent wire instructions received by the Registrar from such registered
owner. Principal, premium, if any, and interest are payable in lawful money of the United States
of America.
Notwithstanding any other provision hereof, this bond is subject to book-entry form
maintained by DTC, and the payment of principal, premium, if any, and interest, the providing of
notices and other matters shall be made as described in the City's Letter of Representations to
DTC.
This bond is one of an issue of $ Storm Water Utility Revenue Bonds,
Series 2010A-1 (Tax-Exempt) (the "Bonds"), of like date and tenor, except as to number,
denomination, rate of interest, privilege of redemption and maturity. The Bonds are issued under
an Agreement of Trust dated as of January 1, 2000, between the City and U.S. Bank National
Association, as successor trustee (the "Trustee"), as supplemented by a First Supplemental
Agreement of Trust dated as of January 1, 2000, and as further supplemented by a Second
Supplemental Agreement of Trust dated as of November 1, 2010 (collectively, the "Agreement
of Trust"), and are equally and ratably secured on a parity as to the pledge of Pledged Revenues
(as defined in the Agreement of Trust) with the Parity Obligations (as defined in the Agreement
of Trust). Reference is hereby made to the Agreement of Trust for a description of the
provisions, among others, with respect to the nature and extent of the security, the rights, duties
and obligations of the City and the Trustee, the rights of the holders of the Bonds and the terms
upon which the Bonds are issued and secured. Additional bonds secured by a pledge of Pledged
Revenues on a parity with the Bonds and the Parity Bonds may be issued under the terms and
conditions set forth in the Agreement of Trust. Subordinated Debt, as defined in the Agreement
of Trust, may be issued under the terms and conditions set forth in the Agreement of Trust.
The Bonds and the premium, if any, and the interest thereon are limited obligations of the
City payable solely from Pledged Revenues, except to the extent payable from the proceeds of
the Bonds, income from investments, certain reserves and proceeds of insurance, which Pledged
Revenues and other moneys have been pledged as described in the Agreement of Trust to secure
payment thereof. The Bonds and the premium, if any, and the interest thereon shall not be
deemed to constitute a pledge of the faith and credit of the Commonwealth of Virginia or any
political subdivision thereof, including the City. Neither the Commonwealth of Virginia nor any
political subdivision thereof, including the City, shall be obligated to pay the principal of or
premium, if any, or interest on the Bonds or other costs incident thereto except from Pledged
Revenues and other moneys pledged therefor, and neither the faith and credit nor the taxing,
power of the Commonwealth of Virginia or any political subdivision thereof, including the City,
is pledged to the payment of the principal of or premium, if any, or interest on the Bonds or other
costs incident thereto.
The Bonds may not be called for redemption by the City except as provided herein and in
the Agreement of Trust. Bonds maturing on or before November 15, 2020, are not subject to
optional redemption prior to their stated maturities. Bonds maturing on or after November 15,
2021, are subject to redemption at the option of the City beginning on November 15, 2020, in
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DRAFT 9/29/10
whole or in part at any time (in any multiple of $5,000), without premium, upon payment of the
principal amount of the Bonds so redeemed plus interest accrued to the redemption date.
Bonds maturing on November 15, 20_, are required to be redeemed prior to maturity in
part in accordance with the sinking fund requirements of the Agreement of Trust on November
15 in years and amounts upon payment of 100% of the principal amount thereof plus interest
accrued to the redemption date, as follows:
Year Amount
The amount of the Bonds to be redeemed in accordance with the sinking fund
requirements of the Agreement of Trust may be reduced in accordance with the provisions of
Section 605 of the Agreement of Trust.
If less than all the Bonds are called for redemption, they shall be redeemed from
maturities in such order as determined by the City. If less than all of the Bonds of any maturity
are called for redemption, the Bonds to be redeemed shall be selected by DTC or any successor
securities depository pursuant to its rules and procedures or, if the book-entry system is
discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in its
discretion may determine. The portion of any Bond to be redeemed shall be in the principal
amount of $5,000 or some multiple thereof. In selecting Bonds for redemption, each Bond shall
be considered as representing that number of Bonds which is obtained by dividing the principal
amount of such Bond by $5,000.
If any of the Bonds or portions thereof are called for redemption, the Registrar shall send
notice of the call for redemption, identifying the Bonds or portions thereof to be redeemed, not
less than 30 nor more than 60 days prior to the redemption date, by facsimile, registered or
certified mail or overnight express delivery, to the registered owner of the Bonds. Provided fiznds
for their redemption are on deposit at the place of payrnent on the redemption date, all Bonds or
portions thereof so called for redemption shall cease to bear interest on such date, shall no longer
be secured by the Agreement of Trust and shall not be deemed to be Outstanding under the
provisions of the Agreement of Trust. If a portion of this bond shall be called for redemption, a
new Bond in principal amount equal to the unredeemed portion hereof will be issued to DTC or
its nominee upon the surrender hereof, or if the book-entry system is discontinued, to the
registered owners of the Bonds.
The registered owner of this bond shall have no right to enforce the provisions of the
Agreement of Trust or to institute action to enforce the covenants therein or to take any action
with respect to any Event of Default under the Agreement of Trust or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in the Agreement of
Trust. Modifications or alterations of the Agreement of Trust, or of any supplement thereto, may
be made only to the extent and in the circumstances permitted by the Agreement of Trust.
A-1-3
DRAFT 9/29/10
The Bonds are issuable as registered bonds in the denomination of $5,000 and multiples
thereof. Upon surrender for transfer or exchange of this bond at the office of the Registrar,
together with an assignment duly executed by the registered owner or its duly authorized
attorney or legal representative in such form as shall be satisfactory to the Registrar, the City
shall execute, and the Registrar shall authenticate and deliver in exchange, a new Bond or Bonds
in the manner and subject to the limitations and conditions provided in the Agreement of Trust,
having an equal aggregate principal amount, in authorized denominations, of the same series,
form and maturity, bearing interest at the same rate and registered in the name or names as
requested by the then registered owner hereof or its duly authorized attorney or legal
representative. Any such exchange shall be at the expense of the City, except that the Registrar
may charge the person requesting such exchange the amount of any tax or other governmental
charge required to be paid with respect thereto.
The Registrar shall treat the registered owner as the person exclusively entitled to
payment of principal, premium, if any, and interest and the exercise of all other rights and
powers of the owner, except that interest payments shall be made to the person shown as owner
on the fifteenth day of the month preceding each interest payment date.
All acts, conditions and things required to happen, exist or be performed precedent to and
in the issuance of this bond have happened, exist and have been performed. This bond shall not
become obligatory for any purpose or be entitled to any security or benefit under the Agreement
of Trust or be valid until the Registrar shall have executed the Certificate of Authentication
appearing hereon and inserted the date of authentication hereon.
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DRAFT 9/29/10
IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has caused this bond to
be signed by its Mayor, to be countersigned by its Clerk, its seal to be affixed hereto, and this
bond to be dated the dated date stated above.
COLTNTERSIGNED:
Clerk, City of Virginia Beach, Virginia
Mayor, City of Virginia Beach, Virginia
(SEAL)
CERTIFICATE OF AUTHENTICATION
Date Authenticated: November , 2010
This bond is one of the Bonds described in the within mentioned Agreement of Trust.
CITY TREASURER, Registrar
By:
Authorized Officer
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DRAFT 9/29/10
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto
(please print or typewrite name and address, including zip code, of Transferee)
PLEASE 1NSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF TRANSFEREE
the within Bond and all rights thereunder, hereby irrevocably constituting and appointing
, Attorney, to
transfer said Bond on the books kept for the registration thereof, with full power of substitution
in the premises.
Dated:
Signature Guaranteed
NOTICE: Signature(s) must be guaranteed
by an Eligible Guarantor Institution such as
a Commercial Bank, Trust Company,
Securities Broker/Dealer, Credit Union, or
Savings Association who is a member of a
medallion program approved by The
Securities Transfer Association, Inc.
(Signature of 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
enlargement or any change whatsoever.
A-1-6
DRAFT 9/29/10
EXHIBIT A-2
Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer,
exchange, or payment, and any certificate is registered in the name of Cede & Co., or in such
other name as is requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has
an interest herein.
REGISTERED
R(2010A-2)-_
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
CITY OF VIRGINIA BEACH, VIRGINIA
REGISTERED
$
Storm Water Utility Revenue Bond
Series 2010A-2 (Taxable-Build America Bond)
Interest Rate Maturity Date Dated Date CUSIP
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
DOLLARS
The City of Virginia Beach, Virginia (the "City"), for value received, hereby promises to
pay upon surrender hereof solely from the source and as hereinafter provided, to the registered
owner hereof, or registered assigns or legal representative, the principal sum stated above on the
maturity date stated above, subject to prior redemption as hereinafter provided, and to pay, solely
from such source, interest hereon semiannually on each May 15 and November 15, beginning
May 15, 2011, at the annual rate stated above, calculated on the basis of a 360-day year of twelve
30-day months. Interest is payable (a) from the dated date stated above, if this bond is
authenticated prior to May 15, 2011, or (b) otherwise from the May 15 or November 15 that is,
or immediately precedes, the date on which this bond is authenticated (unless payment of interest
hereon is in default, in which case this bond shall bear interest from the date to which interest has
been paid). Interest is payable by check or draft mailed to the registered owner hereof at its
address as it appears on the fifteenth day of the month preceding each interest payment date on
registration books kept by the City Treasurer, who has been appointed paying agent and registrar
(the "Registrar"); provided, however, that if the Bonds, as hereinafter defined, are registered in
the name of a securities depository or its nominee as registered owner or at the option of a
A-2-1
DRAFT 9/29/10
registered owner of at least $1,000,000 of Bonds, payrnent will be made by wire transfer
pursuant to the most recent wire instructions received by the Registrax from such registered
owner. Principal, premium, if any, and interest are payable in lawful money of the United States
of America.
Notwithstanding any other provision hereof, this bond is subject to book-entry form
maintained by DTC, and the payment of principal, premium, if any, and interest, the providing of
notices and other matters shall be made as described in the City's Letter of Representations to
DTC.
This bond is one of an issue of $ Storm Water Utility Revenue Bonds,
Series 2010A-2 (Taxable-Build America Bonds) (the "Bonds"), of like date and tenor, except as
to number, denomination, rate of interest, privilege of redemption and maturity. The Bonds are
issued under an Agreement of Trust dated as of January 1, 2000, between the City and U.S. Bank
National Association, as successor trustee (the "Trustee"), as supplemented by a First
Supplemental Agreement of Trust dated as of January l, 2000, and as further supplemented by a
Second Supplemental Agreement of Trust dated as of November 1, 2010 (collectively, the
"Agreement of Trust"), and are equally and ratably secured on a parity as to the pledge of
Pledged Revenues (as defined in the Agreement of Trust) with the Parity Obligations (as defined
in the Agreement of Trust). Reference is hereby made to the Agreement of Trust for a
description of the provisions, among others, with respect to the nature and extent of the security,
the rights, duties and obligations of the City and the Trustee, the rights of the holders of the
Bonds and the terms upon which the Bonds are issued and secured. Additional bonds secured by
a pledge of Pledged Revenues on a parity with the Bonds and the Parity Bonds may be issued
under the terms and conditions set forth in the Agreement of Trust. Subordinated Debt, as
defined in the Agreement of Trust, may be issued under the terms and conditions set forth in the
Agreement of Trust.
The Bonds and the premium, if any, and the interest thereon are limited obligations of the
City payable solely from Pledged Revenues, except to the extent payable from the proceeds of
the Bonds, income from investments, certain reserves and proceeds of insurance, which Pledged
Revenues and other moneys have been pledged as described in the Agreement of Trust to secure
payment thereof. The Bonds and the premium, if any, and the interest thereon shall not be
deemed to constitute a pledge of the faith and credit of the Commonwealth of Virginia or any
political subdivision thereof, including the City. Neither the Commonwealth of Virginia nor any
political subdivision thereof, including the City, shall be obligated to pay the principal of or
premium, if any, or interest on the Bonds or other costs incident thereto except from Pledged
Revenues and other moneys pledged therefor, and neither the faith and credit nor the taxing,
power of the Commonwealth of Virginia or any political subdivision thereof, including the City,
is pledged to the payment of the principal of or premium, if any, or interest on the Bonds or other
costs incident thereto.
The Bonds may not be called for redemption by the City except as provided herein and in
the Agreement of Trust. Except in accordance with the extraordinary optional redemption
provisions described below, Bonds maturing on or before November 15, 2020, are not subject to
optional redemption prior to their stated maturities. Bonds maturing on or after November 15,
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DRAFT 9/29/10
2021, are subject to redemption at the option of the City beginning on November 15, 2020, in
whole or in part at any time (in any multiple of $5,000), without premium, upon payment of the
principal amount of the Bonds so redeemed plus interest accrued to the redemption date.
Notwithstanding the foregoing, the Bonds are subject to redemption at the option of the
City on any date prior to their maturity, in whole or in part (in any multiple of $5,000), upon the
occurrence of an Extraordinary BAB Event (as defined below), at a redemption price equal to the
greater of: (i) 100% of the principal amount of the Bonds to be redeemed, and (ii) the sum of the
present value of the remaining scheduled payments of principal and interest to the maturity date
of the Bonds to be redeemed, not including any portion of those payments of interest accrued and
unpaid as of the date on which the Bonds are to be redeemed, discounted to the date on which the
Bonds are to be redeemed on a semi-annual basis, assuming a 360-day year consisting of twelve
30-day months, at the Treasury Rate (as defined below), plus 100 basis points, plus, in each case,
accrued interest on the Bonds to be redeemed to the redemption date.
An "Extraordinary BAB Event" will have occurred if a material adverse change has
occurred to Section 54AA or 6431 of the Code (as such Sections were added by Section 1531 of
the American Recovery and Reinvestment Act, pertaining to "Build America Bonds") or there is
any guidance published by the Internal Revenue Service or the United States Treasury with
respect to such Sections or any other determination by the Internal Revenue Service or the
United States Treasury (which determination is not the result of any act or omission by the City
to satisfy the requirements to qualify to receive the Federal Subsidy (as hereinafter defined) from
the United States Treasury) pursuant to which the subsidy payment from the United States
Treasury equal to 35% of the interest payable on the Bonds (the "Federal Subsidy") is reduced or
eliminated.
The "Treasury Rate" means, with respect to ariy redemption date for a particular Bond,
the yield to maturity as of such redemption date of United States Treasury securities with a
constant maturity excluding inflation indexed securities (as compiled and published in the most
recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least
two business days prior to the redemption date or, if such Statistical Release is no longer
published, any publicly available source of similar market data) most nearly equal to the period
from the redemption date to the maturity date of such Bond to be redeemed; provided, however,
that if the period from the redemption date to such maturity date is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity
of one year will be used.
Bonds maturing on November 15, 20_, are required to be redeemed prior to maturity in
part in accordance with the sinking fund requirements of the Agreement of Trust on November
15 in years and amounts upon payment of 100% of the principal amount thereof plus interest
accrued to the redemption date, as follows:
Year Amount
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The amount of the Bonds to be redeemed in accordance with the sinking fund
requirements of the Agreement of Trust may be reduced in accordance with the provisions of
Section 605 of the Agreement of Trust.
If less than all the Bonds are called for redemption, they shall be redeemed from
maturities in such order as determined by the City. If less than all of the Bonds of any maturity
are called for redemption, the Bonds to be redeemed shall be selected on a pro-rata basis. "Pro
rata is determined, in connection with any mandatory sinking fund redemption or any optional
redemption in part, by multiplying the principal amount of such maturity to be redeemed on the
applicable redemption date by a fraction, the numerator of which is equal to the principal amount
of the Bond of such maturity owned by the registered owner, and the denominator of which is
equal to the total amount of the Bonds of such maturity then outstanding immediately prior to
such redemption date, and then rounding the product down to the next lower integral multiple of
$5,000; provided that the portion of any Bonds to be redeemed are required to be in authorized
denominations and all Bonds of a maturity to remain outstanding following any redemption are
required to be in authorized denominations. Notwithstanding the foregoing, if the Bonds are in
book-entry form at the time of such redemption, the City will instruct DTC to instruct the DTC
participants to select the specific Bonds for redemption by lot within maturities among
Bondholders, and the City shall not have any responsibility to ensure that DTC or the DTC
participants properly select such Bonds for redemption. The portion of any Bond to be redeemed
shall be in a minimum principal amount of $5,000 or some multiple thereof. In selecting Bonds
for redemption, each Bond shall be considered as representing that number of Bonds which is
obtained by dividing the principal amount of such Bond by $5,000.
If any of the Bonds or portions thereof are called for redemption, the Registrar shall send
notice of the call for redemption, identifying the Bonds or portions thereof to be redeemed, not
less than 30 nor more than 60 days prior to the redemption date, by facsimile, registered or
certified mail or overnight express delivery, to the registered owner of the Bonds. Provided funds
for their redemption are on deposit at the place of payment on the redemption date, all Bonds or
portions thereof so called for redemption shall cease to bear interest on such date, shall no longer
be secured by the Agreement of Trust and shall not be deemed to be Outstanding under the
provisions of the Agreement of Trust. If a portion of this bond shall be called for redemption, a
new Bond in principal amount equal to the unredeemed portion hereof will be issued to DTC or
its nominee upon the surrender hereof, or if the book-entry system is discontinued, to the
registered owners of the Bonds.
The registered owner of this bond shall have no right to enforce the provisions of the
Agreement of Trust or to institute action to enforce the covenants therein or to take any action
with respect to any Event of Default under the Agreement of Trust or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in the Agreement of
Trust. Modifications or alterations of the Agreement of Trust, or of any supplement thereto, may
be made only to the extent and in the circumstances permitted by the Agreement of Trust.
The Bonds are issuable as registered bonds in the denomination of $5,000 and multiples
thereof. Upon surrender for transfer or exchange of this bond at the office of the Registrar,
together with an assignment duly executed by the registered owner or its duly authorized
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attorney or legal representative in such form as shall be satisfactory to the Registrar, the City
shall execute, and the Registrar shall authenticate and deliver in exchange, a new Bond or Bonds
in the manner and subject to the limitations and conditions provided in the Agreement of Trust,
having an equal aggregate principal amount, in authorized denominations, of the same series,
form and maturity, bearing interest at the same rate and registered in the name or names as
requested by the then registered owner hereof or its duly authorized attorney or legal
representative. Any such exchange shall be at the expense of the City, except that the Registrar
may charge the person requesting such exchange the amount of any tax or other governmental
charge required to be paid with respect thereto.
The Registrar shall treat the registered owner as the person exclusively entitled to
payment of principal, premium, if any, and interest and the exercise of all other rights and
powers of the owner, except that interest payments shall be made to the person shown as owner
on the fifteenth day of the month preceding each interest payment date.
All acts, conditions and things required to happen, exist or be performed precedent to and
in the issuance of this bond have happened, exist and have been performed. This bond shall not
become obligatory for any purpose or be entitled to any security or benefit under the Agreement
of Trust or be valid until the Registrar shall have executed the Certificate of Authentication
appearing hereon and inserted the date of authentication hereon.
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IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has caused this bond to
be signed by its Mayor, to be countersigned by its Clerk, its seal to be affixed hereto, and this
bond to be dated the dated date stated above.
COUNTERSIGNED:
Clerk, City of Virginia Beach, Virginia
(SEAL)
Mayor, City of Virginia Beach, Virginia
CERTIFICATE OF AUTHENTICATION
Date Authenticated: November , 2010
This bond is one of the Bonds described in the within mentioned Agreement of Trust.
CITY TREASURER, Registrar
By:
Authorized Officer
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ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto
(please print or typewrite name and address, including zip code, of Transferee)
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF TRANSFEREE
the within Bond and all rights thereunder, hereby irrevocably constituting and appointing
, Attorney, to
transfer said Bond on the books kept for the registration thereof, with full power of substitution
in the premises.
Dated:
Signature Guaranteed
NOTIGE: Signature(s) must be guaranteed
by an Eligible Guarantor Institution such as
a Commercial Bank, Trust Company,
Securities Broker/Dealer, Credit Union, or
Savings Association who is a member of a
medallion program approved by The
Securities Transfer Association, Inc.
(Signature of 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
enlargement or any change whatsoever.
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EXHIBIT B
Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer,
exchange, or payment, and any certificate is registered in the name of Cede & Co., or in such
other name as is requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has
an interest herein.
REGISTERED REGISTERED
RB- $
UNITED STATES OF AMERICA
COMMONWEALTH OF VIRGINIA
CITY OF VIRGINIA BEACH, VIRGINIA
Storm Water Utility Refunding Revenue Bond
Series 2010B (Tax-Exempt)
Interest Rate Maturity Date Dated Date CUSIP
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
DOLLARS
The City of Virginia Beach, Virginia (the "City"), for value received, hereby promises to
pay upon surrender hereof solely from the source and as hereinafter provided, to the registered
owner hereof, or registered assigns or legal representative, the principal sum stated above on the
maturity date stated above, subject to prior redemption as hereinafter provided, and to pay, solely
from such source, interest hereon semiannually on each May 15 and November 15, beginning
May 15, 2011, at the annual rate stated above, calculated on the basis of a 360-day year of twelve
30-day months. Interest is payable (a) from the dated date stated above, if this bond is
authenticated prior to May 15, 2011, or (b) otherwise from the May 15 or November 15 that is,
or immediately precedes, the date on which this bond is authenticated (unless payment of interest
hereon is in default, in which case this bond shall bear interest from the date to which interest has
been paid). Interest is payable by check or draft mailed to the registered owner hereof at its
address as it appears on the fifteenth day of the month preceding each interest payment date on
registration books kept by the City Treasurer, who has been appointed paying agent and registrar
(the "Registrar"); provided, however, that if the Bonds, as hereinafter defined, are registered in
the name of a securities depository or its nominee as registered owner or at the option of a
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registered owner of at least $1,000,000 of Bonds, payment will be made by wire transfer
pursuant to the most recent wire instructions received by the Registrar from such registered
owner. Principal, premium, if any, and interest are payable in lawful money of the United States
of America.
Notwithstanding any other provision hereof, this bond is subject to book-entry form
maintained by DTC, and the payment of principal, premium, if any, and interest, the providing of
notices and other matters shall be made as described in the City's Letter of Representations to
DTC.
This bond is one of an issue of $ Storm Water Utility Refunding Revenue
Bonds, Series 2010B (Tax-Exempt) (the "Bonds"), of like date and tenor, except as to number,
denomination, rate of interest, privilege of redemption and maturity. The Bonds are issued under
an Agreement of Trust dated as of January 1, 2000, between the City and U.S. Bank National
Association, as successor trustee (the "Trustee"), as supplemented by a First Supplemental
Agreement of Trust dated as of January 1, 2000, and as further supplemented by a Second
Supplemental Agreement of Trust dated as of November 1, 2010 (collectively, the "Agreement
of Trust"), and are equally and ratably secured on a parity as to the pledge of Pledged Revenues
(as defined in the Agreement of Trust) with the Parity Obligations (as defined in the Agreement
of Trust). Reference is hereby made to the Agreement of Trust for a description of the
provisions, among others, with respect to the nature and extent of the security, the rights, duties
and obligations of the City and the Trustee, the rights of the holders of the Bonds and the terms
upon which the Bonds are issued and secured. Additional bonds secured by a pledge of Pledged
Revenues on a parity with the Bonds and the Parity Bonds may be issued under the terms and
conditions set forth in the Agreement of Trust. Subordinated Debt, as defined in the Agreement
of Trust, may be issued under the terms and conditions set forth in the Agreement of Trust.
The Bonds and the premium, if any, and the interest thereon are limited obligations of the
City payable solely from Pledged Revenues, except to the extent payable from the proceeds of
the Bonds, income from investments, certain reserves and proceeds of insurance, which Pledged
Revenues and other moneys have been pledged as described in the Agreement of Trust to secure
payment thereof. The Bonds and the premium, if any, and the interest thereon shall not be
deemed to constitute a pledge of the faith and credit of the Commonwealth of Virginia or any
political subdivision thereof, including the City. Neither the Commonwealth of Virginia nor any
political subdivision thereof, including the City, shall be obligated to pay the principal of or
premium, if any, or interest on the Bonds or other costs incident thereto except from Pledged
Revenues and other moneys pledged therefor, and neither the faith and credit nor the taxing,
power of the Commonwealth of Virginia or any political subdivision thereof, including the City,
is pledged to the payment of the principal of or premium, if any, or interest on the Bonds or other
costs incident thereto.
The Bonds may not be called for redemption by the City except as provided herein and in
the Agreement of Trust. Bonds maturing on or before November 15, 2020, are not subject to
optional redemption prior to their stated maturities. Bonds maturing on or after November 15,
2021, are subject to redemption at the option of the City beginning on November 15, 2020, in
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DRAFT 9/29/10
whole or in part at any time (in any multiple of $5,000), without premium, upon payment of the
principal amount of the Bonds so redeemed plus interest accrued to the redemption date.
Bonds maturing on November 15, 20 , are required to be redeemed prior to maturity in
part in accordance with the sinking fund requirements of the Agreement of Trust on November
15 in years and amounts upon payment of 100% of the principal amount thereof plus interest
accrued to the redemption date, as follows:
ye~ Amount
The amount of the Bonds to be redeemed in accordance with the sinking fund
requirements of the Agreement of Trust may be reduced in accordance with the provisions of
Section 605 of the Agreement of Trust.
If less than all the Bonds are called for redemption, they shall be redeemed from
maturities in such order as determined by the City. If less than all of the Bonds of any maturity
are called for redemption, the Bonds to be redeemed shall be selected by DTC or any successor
securities depository pursuant to its rules and procedures or, if the book-entry system is
discontinued, shall be selected by the Registrar by lot in such manner as the Registrar in its
discretion may determine. The portion of any Bond to be redeemed shall be in the principal
amount of $5,000 or some multiple thereof. In selecting Bonds for redemption, each Bond shall
be considered as representing that number of Bonds which is obtained by dividing the principal
amount of such Bond by $5,000.
If any of the Bonds or portions thereof are called for redemption, the Registrar shall send
notice of the call for redemption, identifying the Bonds or portions thereof to be redeemed, not
less than 30 nor more than 60 days prior to the redemption date, by facsimile, registered or
certified mail or overnight express delivery, to the registered owner of the Bonds. Provided funds
for their redemption are on deposit at the place of payment on the redemption date, all Bonds or
portions thereof so called for redemption shall cease to bear interest on such date, shall no longer
be secured by the Agreement of Trust and shall not be deemed to be Outstanding under the
provisions of the Agreement of Trust. If a portion of this bond shall be called for redemption, a
new Bond in principal amount equal to the unredeemed portion hereof will be issued to DTC or
its nominee upon the surrender hereof, or if the book-entry system is discontinued, to the
registered owners of the Bonds.
The registered owner of this bond shall have no right to enforce the provisions of the
Agreement of Trust or to institute action to enforce the covenants therein or to take any action
with respect to any Event of Default under the Agreement of Trust or to institute, appear in or
defend any suit or other proceedings with respect thereto, except as provided in the Agreement of
Trust. Modifications or alterations of the Agreement of Trust, or of any supplement thereto, may
be made only to the extent and in the circumstances permitted by the Agreement of Trust.
B-3
DRAFT 9/29/10
The Bonds are issuable as registered bonds in the denomination of $5,000 and multiples
thereof. Upon surrender for transfer or exchange of this bond at the office of the Registrar,
together with an assignment duly executed by the registered owner or its duly authorized
attorney or legal representative in such form as shall be satisfactory to the Registrar, the City
shall execute, and the Registrar shall authenticate and deliver in exchange, a new Bond or Bonds
in the manner and subject to the limitations and conditions provided in the Agreement of Trust,
having an equal aggregate principal amount, in authorized denominations, of the same series,
form and maturity, bearing interest at the same rate and registered in the name or names as
requested by the then registered owner hereof or its duly authorized attorney or legal
representative. Any such exchange shall be at the expense of the City, except that the Registrar
may charge the person requesting such exchange the amount of any tax or other governmental
charge required to be paid with respect thereto.
The Registrar shall treat the registered owner as the person exclusively entitled to
payment of principal, premium, if any, and interest and the exercise of all other rights and
powers of the owner, except that interest payments shall be made to the person shown as owner
on the fifteenth day of the month preceding each interest payment date.
All acts, conditions and things required to happen, exist or be performed precedent to and
in the issuance of this bond have happened, exist and have been performed. This bond shall not
become obligatory for any purpose or be entitled to any security or benefit under the Agreement
of Trust or be valid until the Registrar shall have executed the Certificate of Authentication
appearing hereon and inserted the date of authentication hereon.
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IN WITNESS WHEREOF, the City of Virginia Beach, Virginia, has caused this bond to
be signed by its Mayor, to be countersigned by its Clerk, its seal to be affixed hereto, and this
bond to be dated the dated date stated above.
COUNTERSIGNED:
Clerk, City of Virginia Beach, Virginia
(SEAL)
Mayor, City of Virginia Beach, Virginia
CERTIFICATE OF AUTHENTICATION
Date Authenticated: November , 2010
This bond is one of the Bonds described in the within mentioned Agreement of Trust.
CITY TREASURER, Registrar
By:
Authorized Officer
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DRAFT 9/29/10
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto
(please print or typewrite name and address, including zip code, of Transferee)
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF TRANSFEREE
the within Bond and all rights thereunder, hereby irrevocably constituting and appointing
, Attorney, to
transfer said Bond on the books kept for the registration thereof, with full power of substitution
in the premises.
Dated:
Signature Guaranteed
NOTICE: Signature(s) must be guaranteed
by an Eligible Guarantor Institution such as
a Commercial Bank, Trust Company;
Securities Broker/Dealer, Credit Union, or
Savings Association who is a member of a
medallion program approved by The
Securities Transfer Association, Inc.
(Signature of 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
enlargement or any change whatsoever.
DOCSNFK-#1654137-v4-Second_Supplement_Agreement_of Trust VB_Stonn_Water_2010.DOC
B-6
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OFFICIAL NOTICE OF SALE
CITY OF VIRGINIA BEACH, VIRGINIA
$2~,00~,00~
STORM WATER UTILITY REVENUE BONDS, SERIES ZOlOA
Electronic bids only will be received by the City of Virginia Beach, Virginia (the "City"), in accordance
with this Official Notice of Sale until 11:30 A.M., Local Time, on Tuesday, November 9, 2010 (the "Date of Sale").
In the case of a malfunction in submitting an electronic bid, facsimile bids will be allowed, as more fully described
below.
Immediately thereafter, the bids will be publicly announced, and the City Manager will act upon the bids by
2:30 p.m., Local Time.
Bidders must designate, through the submission of their bid, all of the Bonds (as defined below) as either
tax-exempt bonds (the "Tax-Exempt Bonds'), federally taxable Build America Bonds (the "Taxable BAB
Bonds'), or a combination thereof, as further described herein. See "Bidding Rules; Award of Bonds."
Bid Submission
Solely as an accommodation to bidders, electronic bids via BIDCOMP/PARITY (the "Electronic Bidding
System") will be accepted in accordance with this Official Notice of Sale. The City is using BIDCOMP/PARITY as
a communication mechanism to conduct the electronic bidding for the sale of $20,000,000 Storm Water Utility
Revenue Bonds, Series 2010A (the "Bonds"), as described herein. To the extent any instructions or directions set
forth in BIDCOMP/PARITY conflict with this Official Notice of Sale, the terms of this Official Notice of Sale shall
control. Each bidder submitting an electronic bid agrees (i) that it is solely responsible for all arrangements with
BIDCOMP/PARITY, (ii) that BIDCOMP/PARITY is not acting as the agent of the City, and (iii) that the Ciry is not
responsible for ensuring or verifying bidder compliance with any of the procedures of BIDCOMP/PARITY. The
City assumes no responsibility for, and each bidder expressly assumes the risks of and responsibility for, any
incomplete, inaccurate or untimely bid submitted by such bidder through BIDCOMP/PARITY. Each bidder shall be
solely responsible for making necessary arrangements to access the Electronic Bidding System for purposes of
submitting its bid in a timely manner and in compliance with the requirements of this Official Notice of Sale.
Neither the City nor the Electronic Bidding System shall have any duty or obligation to provide or assure such
access to any bidder, and neither the City nor BIDCOMP/PARITY shall be responsible for proper operation of, or
have any liability for, any delays or interruptions of, or any damages caused by, BIDCOMP/PARITY. For further
information about BIDCOMP/PARITY, potential bidders may contact BIDCOMP/PARITY at 1359 Broadway, 2na
Floor, New York, New York 10018, telephone (212) 849-5021.
The Bonds may be issued as one tax-exempt series, one taxable series, or a combination thereof, as further
described herein.
In the event of a malfunction of the Electronic Bidding System, facsimile transmission bids will be
accepted up to 11:30 A.M., Local Time, on the Date of Sale. Bidders choosing to submit bids in the case of a
malfunction by facsimile transmission shall use the following telecopier numbers for such transmission: (757) 385-
4302 or (757) 385-8894 (Attention: Patricia A. Phillips). Transmissions received after the deadline shall be rejected.
It is the responsibility of the bidder to ensure that the bid is legible, that the bid is received not later than 11:30 A.M.,
Local Time, and that the bid is sent to one of the telecopier numbers set forth above. Illegible transmissions shall be
rejected. The City's financial advisor, Government Finance Associates, Inc. ("Financial Advisor") will, on behalf of
DRAFT 9/29/10
the City, verify receipt of each bid submitted through facsimile transmission by contacting each bidder by telephone
once the bid has been received. The Financial Advisor will in no instance correct, alter or in any way change bids
submitted through facsimile transmission. Neither the City nor its Financial Advisor will be responsible for bids
submitted by facsimile transmission not received in accordance with the provisions of this Official Notice of Sale.
Bidders electing to submit bids via facsimile transmission will bear full and complete responsibility for the
transmission of such bid.
Each bid must be unconditional.
Principal Redemption
The Bonds will be limited obligations of the City, dated the date of delivery (the "Dated Date"), anticipated
for Tuesday, November 16, 2010, and will mature serially or be subject to mandatory sinking fund redemptions on
November 15 in the years and amounts shown below.
Preliminary Preliminary
Due November 15 Amount Due November 15 Amount
2011 $530,000 2024 $760,000
2012 540,000 2025 800,000
2013 550,000 2026 840,000
2014 565,000 2027 880,000
2015 575,000 2028 925,000
2016 585,000 2029 970,000
2017 595,000 2030 1,020,000
2018 610,000 2031 1,070,000
2019 625,000 2032 1,125,000
2020 640,000 2033 1,180,000
2021 660,000 2034 1,240,000
2022 690,000 2035 1,300,000
2023 725,000
Serial Bonds, Term Bonds and Mandatory Sinking Fund Redemptions
Bidders may provide in the bid form for all of the Bonds to be issued as serial Bonds or may designate
consecutive annual principal amounts of the Bonds to be combined into not more than two Term Bonds. In the
event that a bidder chooses to specify a Term Bond, each such Term Bond shall be subject to mandatory sinking
fund redemption commencing on November 15 of the first year which has been combined to form such Term Bond
and continuing on November 15 in each year thereafter until the stated maturity of such Term Bond. The amount
redeemed in any year shall be equal to the principal amount for such year set forth in the amortization schedule
above. Bonds to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and shall
be selected by lot from among the maturities of the Term Bond being redeemed.
Description of the Bonds; Book-Entry Only System
The Bonds will be issued pursuant to an Agreement of Trust dated as of January 1, 2000, as
previously supplemented and as further supplemented by a Second Supplemental Agreement of Trust dated
as of November 1, 2010 (collectively, the "Agreement of Trust"), all between the City and U.S. Bank National
Association (successor to First Union National Bank), Richmond, Virginia, as trustee (the "Trustee"). The
Bonds will be issued by means of a book-entry system with no distribution of physical Bond certificates made to the
public. One Bond certificate for each maturity will be issued to The Depository Trust Company, New York, New
York ("DTC"), or its nominee, and immobilized in its custody. The book-entry system will evidence beneficial
ownership of the Bonds in principal amounts of $5,000 or multiples thereof, with transfers of beneficial ownership
effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its
participants. Bond certificates registered in the name of Cede & Co. will be deposited with DTC. Interest on the
2
DRAFT 9/29/10
Bonds will be paid semiannually on May 15 and November 15, beginning May 15, 2011, and principal on the Bonds
will be paid annually on November 15, beginning November 15, 2011, to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to beneficial owners by participants of DTC will be the
responsibility of such participants and other nominees of beneficial owners. The City will not be responsible or
liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting
through such participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at any time
by giving reasonable notice to the City. Under such circumstances, in the event that a successor securities
depository is not obtained, Bond certificates are required to be prepared, executed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor
securities depository). In that case, either a successor depository will be selected by the City or Bond certificates
will be prepared, executed and delivered.
Optional Redemption
Optional Redemption for Bonds Sold and Issued as Tcix-Exempt Bonds
Tax-Exempt Bonds that mature on or before November 15, 2020 are not subject to optional redemption
prior to their stated maturities. Tax-Exempt Bonds that mature on and after November 15, 2021 will be subject to
redemption beginning November 15, 2020, in whole ar in part at any time, at the option of the City, upon payment
of the par amount of the Tax-Exempt Bonds so redeemed plus interest accrued and unpaid to the redemption date.
Extraordinary Optional Redemption for Taxable BAB Bonds
Before November 15, 2020, any Bonds issued as Taacable BAB Bonds are subject to redemption on any date
prior to their maturity at the option of the City, in whole or in part upon the occurrence of an Extraordinary Event, as
defined below, at a redemption price equal to the greater o£
(1) 100% of the principal amount of the Taxable BAB Bonds to be redeemed; ar
(2) the sum of the present value of the remaining scheduled payments of principal and interest to the
maturity date of the Bonds to be redeemed, not including any portion of those payments of interest
accrued and unpaid as of the date on which the Bonds are to be redeemed, discounted to the date on
which the Bonds are to be redeemed on a semi-annual basis, assuming a 360-day year consisting of
twelve 30-day months, at the Treasury Rate, plus 100 basis points;
plus, in each case, accrued interest on the Bonds to be redeemed to the redemption date.
An "Extraordinary Event" will have occurred if the City determines that a material adverse change has
occurred to Section 54AA or 6431 of the Code (as such Sections were added by Section 1531 of the Recovery Act,
pertaining to `Build America Bonds") or there is any guidance published by the Internal Revenue Service or the
United States Department of the Treasury with respect to such Sections or any other determination by the Internal
Revenue Service or the United States Department of the Treasury, which determination is not the result of any act or
omission by the City to satisfy the requirements to qualify to receive the 35% cash subsidy payment from the United
States Department of the Treasury, pursuant to which the City's 35% cash subsidy payment from the United States
Department of the Treasury is reduced or eliminated.
"Treasury Rate" means, with respect to any redemption date for a particular Taxable BAB Bond, the yield
to maturity as of such redemption date of United States securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519)) that has become publicly available at
least two business days prior to the redemption date (excluding inflation indexed securities or, if such Statistical
Release is no longer published, any publicly available source of similar market data) most nearly equal to the period
3
DRAFT 9/29/10
from the redemption date to the maturity date of the Taxable BAB Bond to be redeemed; provided, that if the period
from the redemption date to the maturity date is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year will be used.
Optional Redemption for Bonds Sold and Issued As Tar~eable BAB Bonds
Taxable BAB Bonds maturing on and prior to November 15, 2020 will not be subject to redemption prior
to maturity except pursuant to the extraordinary optional redemption provisions set forth above. Taxable BAB
Bonds maturing after November 15, 2020 will be subject to redemption prior to maturity, at the option of the City,
on or after November 15, 2020, either in whole or in part on a pro rata basis as described below at any time, at a
redemption price of 100% of the principal amount of the Taxable BAB Bonds to be redeemed, plus accrued interest
to the date set for redemption.
Selection of Bonds to be Redeemed in Partial Redemption
The following provisions shall apply to Bonds sold and issued as Tax-Exempt Bonds:
If less than all of the Bonds are called for optional redemption, the Bonds to be redeemed shall be selected
by the City's Director of Finance in such manner as may be determined to be in the best interest of the City. If less
than all of the Bonds of a particular maturity are called for redemption, DTC or any successor securities depository
will select the Bonds to be redeemed pursuant to its rules and procedures or, if the book-entry system is
discontinued, the Bonds to be redeemed will be selected by the City Treasurer, who has been appointed registrar (the
"Registrar"), by lot in such manner as the Registrar in its discretion may determine. In either case, each portion of
the $5,000 principal amount is counted as one Bond for such purpose.
The following provisions shall apply to Bonds sold and issued as Taxable BAB Bonds:
If less than all of the Taxable BAB Bonds of a particular maturity are called for redemption, the particular
Taxable BAB Bonds to be redeemed will be selected on a pro-rata basis. With respect to such Taxable BAB Bonds
sold, "pro rata" is determined, in connection with any mandatory sinking fund redemption or any optional
redemption in part, by multiplying the principal amount of such maturity to be redeemed on the application
redemption date by a fraction, the numerator of which is equal to the principal amount of the Taxable BAB Bond of
such maturity owned by the registered owner, and the denominator of which is equal to the total amount of the
Ta~:able BAB Bonds of such maturity then outstanding immediately prior to such redemption date, and then
rounding the product down to the next lower integral multiple of $5,000; provided that the portion of any T~able
BAB Bonds to be redeemed is required to be in authorized denominations and all Taxable Bonds of a maturity to
remain outstanding following any redemption are required to be in authorized denominations. Notwithstanding the
foregoing, if the Taxable BAB Bonds are in book-entry form at the time of such redemption, the City will instruct
DTC to instruct the DTC participants to select the specific Taxable BAB Bonds for redemption by lot within
maturities among Beneficial Owners, and the City shall not have any responsibility to ensure that DTC or the DTC
participants properly select such Taxable BAB Bonds for redemption.
Notice of Redemption
The City will cause notice of the call for redemption identifying the Bonds or portions thereof to be
redeemed to be sent by the Trustee by facsimile transmission, registered or certified mail or overnight express
delivery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner thereof.
Neither the City nor the Trustee shall be responsible for mailing notice of redemption to anyone other than DTC or
another qualified securities depository or its nominee unless no qualified securities depository is the registered
owner of the Bonds. If no qualified securities depository is the registered owner of the Bonds, notice of redemption
shall be mailed to the registered owners of the Bonds. If a portion of a Bond is called for redemption, a new Bond in
principal amount equal to the unredeemed portion shall be issued to the registered owner upon the surrender thereof.
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DRAFT 9/29/10
Security
The Bonds are limited obligations of the Ciry, payable solely from Pledged Revenues (as defined in the
Agreement of Trust and as more fully described in the Preliminary Official Statement, dated , 2010 ). The Bonds
shall not be deemed to constitute indebtedness of, or a pledge of the faith and credit of, the Commonwealth of
Virbinia nar the faith and credit of any county, city, town or other subdivision of the Commonwealth of Virginia,
including the City. The issuance of the Bonds do not directly, indirectly or contingently obligate the
Commonwealth or any other political subdivision of the Commonwealth, including the City, to levy and collect any
taxes whatsoever or make any appropriation therefore except from the Pledged Revenues to the payment of the
principal of and premium, if any, and interest on the Bonds. In the Agreement of Trust, the City covenants to fix,
charge, collect and revise its fees, rates and other charges for the use of and for the services furnished by the System
in each Fiscal Year so as to produce revenues sufficient to pay the cost of operation and maintenance, the cost of
necessary replacements and improvements and debt service on the Bonds and on any other indebtedness of the City
secured by such revenues, and to provide certain reserves therefore.
Use of Bond Proceeds
As described in more detail in the City's Preliminary Official Statement, dated , 2010, the Bonds are
being issued to provide funds for various storm water construction projects in the City and to pay for certain costs of
issuance related to the Bonds.
Bidding Rules; Award of Bonds
A bidder may choose to submit tax-exempt interest rates or ta~cable Build American Bonds (BAB) interest
rates on a maturity by maturity basis. The Bonds may be issued as one tax-exempt series, one taxable BAB series,
or a combination which would include a series of Tax-Exempt Bonds and a series of Taxable BAB Bonds. In the
event the winning bid is a combination of Tax-Exempt Bonds and Taxable BAB Bonds, the Tax-Exempt Bonds will
be identified as Series 2010A-1 (Tax-Exempt) and the Ta~cable BAB Bonds will be identified as Series 2010A-2
(Taxable - Build America Bonds).
Bidders may only bid to purchase all of the Bonds. No bid for less than 100% of par (computed on the basis
of a 360-day year and twelve 30-day months) shall be considered. Bidders are invited to name the rate or rates of
interest per annum which the Bonds are to bear in multiples of one-twentieth (1/20th) or one-eighth (1/8th) of one
percent. All Bonds maturing on the same date must bear interest at the same rate. Any number of rates may be
named provided that (a) the highest rate of interest may not exceed the lowest rate of interest by more than 5
percentage points, and (b) the highest rate of interest stated for any maturity may not exceed 6.5% per annum. The
rate limitation shall apply to both Tax-Exempt Bonds and to Taxable BAB Bonds; for purposes of the award, the
interest rates on any Taxable BAB Bonds shall be reduced by 35% (reflecting the interest rate credit that the City
will elect to receive as a result of the Bonds being qualified Build America Bonds). In no event shall the true interest
cost for the issue received by the City exceed 5.0%. Bidders must provide to the City immediately upon award the
reoffering price for such Bonds; for Taxable BAB Bonds, such reoffering price for each maturity cannot exceed the
par amount of the individual maturity by mare than 0.25 percent multiplied by the number of whole years to the
maturity date of such Bonds. The City reserves the right to reject any or all bids (regardless of the interest rate bid),
to reject any bid not complying with this Official Notice of Sale and, so far as permitted by law, to waive any
irregularity or informality with respect to any bid or the bidding process.
Unless all bids are rejected, the Bonds will be awarded to the bidder complying with the terms of this
Official Notice of Sale and submitting a bid which provides the lowest "true" interest cost to the City. True interest
cost shall be determined for each bid by doubling the semiannual interest rate, compounded semiannually, necessary
to discount the debt service payments from the payment dates to the Dated Date and to the price bid. If more than
one bid offers the same lowest true interest cost, the successful bid will be selected by the City Manager by lot. The
City reserves the right to reject any or all bids and to waive any irregularity or informality with respect to any bid.
DRAFT 9/29/10
Bids for the Bonds shall not be conditioned upon obtaining insurance or any other credit enhancement. If a
bidder proposes to obtain a policy of municipal bond insurance or any other credit enhancement, any such purchase
of insurance or commitment therefor shall be at the sole option and expense of the bidder, and the bidder must pay
any increased costs of issuance of the Bonds as a result of such insurance or commitment. Any failure by the bidder
to obtain such a policy of insurance shall not in any way relieve such bidder of its contractual obligations arising
from the acceptance of its bid for the purchase of the Bonds.
As promptly as reasonably possible after the bids are received, the City will notify the bidder to whom the
Bonds will be awarded, if and when such award is made. Such bidder, upon such notice, shall advise the City of the
initial reoffering prices or yields to the public of each maturity of the Bonds (the "Initial Reoffering Prices or
Yields") and details regarding the anticipated use of a municipal bond insurance policy, if any, in connection with
the Bonds. The successful bidder must reasonably expect to sell to the public 10% or more in par amount of the
Bonds from each maturity at the Initial Reoffering Prices or Yields. All bids will remain firm for a period of no
less than three hours after the time specified for the opening of bids. An award of the Bonds, if made, will be made
by the City Manager within such three hour period or, with the express consent of the bidders, such longer time
period as deemed necessary.
Good Faith Deposit
The successful bidder for the Bonds is required to submit a Good Faith Deposit in the amount of $200,000
payable to the order of the City of Virginia Beach in the form of a wire transfer in federal funds, as instructed by the
City's Financial Advisor. The successful bidder must submit the Good Faith Deposit not later than 11:30 A.M.,
Local Time, on the next business day following the award. The successful bidder shall provide the federal funds
reference number upon request of the City. If the successful bidder fails to comply with the terms of its bid, the
Good Faith Deposit shall be retained by the City as full liquidated damages; otherwise, the amount thereof will be
applied to the purchase price of the Bonds at the time of delivery. No interest on the Good Faith Deposit will accrue
to the successful bidder.
Delivery of the Bonds
The Bonds will be delivered at the expense of the City in New York, New York, through the facilities of
DTC on ar about Tuesday, November 16, 2010.
Concurrently with the delivery of the Bonds, the City will furnish to the successful bidder without cost (a) a
certificate dated the date of delivery of the Bonds, signed by the appropriate City officials and stating that no
litigation of any kind is then pending or, to the best of their information, knowledge and belief, threatened against
the City to restrain ar enjoin the issuance or delivery of the Bonds and (b) certificates dated the date of delivery of
the Bonds, stating that the descriptions and statements in the Official Statement (except in the sections entitled
`Book-Entry System" and "Tax Matters" and in the columns "Price,/Yield" and "CUSIP No." on the inside cover),
on the date of the Official Statement and on the date of delivery of the Bonds, were and are true and correct in all
material respects, did not and do not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make such descriptions and statements, in light of the circumstances
under which they were made, not misleading. Such certificates will also state, however, that such City officials did
not independently verify the information indicated in the Official Statement as having been obtained or derived from
sources other than the City and its officers but they have no reason to believe that such information is not accurate.
Certificate of Winning Bidder
The successful bidder must, by facsimile transmission or overnight delivery received by the City within 24
hours after receipt of the bids for the Bonds, furnish the following information to the City to complete the Official
Statement in fmal form, as described below:
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A. The offering prices for the Bonds (expressed as the price or yield per maturity, exclusive of any
accrued interest).
B. Selling compensation (aggregate total anticipated compensation to the underwriters expressed in
dollars, based on the expectation that all Bonds are sold at the prices or yields described in Subpart
A above).
C. The identity of the underwriters if the successful bidder is a part of a group or syndicate.
D. Any other material information necessary to complete the Official Statement in final form but not
known to the City.
Prior to the delivery of the Bonds, the successful bidder shall furnish to the City a certificate in form
acceptable to bond counsel, to the effect that the successful bidder has made a bona fide public offering of the Bonds
at the initial public offering prices set forth in such certificate, that the successful bidder has complied with Rule G-
37 of the Municipal Securities Rulemaking Board (the "MSRB") with respect to the City and that a substantial
amount of the Bonds of each maturity were sold to the public (excluding bond houses, brokers and other
intermediaries) at such initial public offering prices. Such certificate shall state that (1) it is made on the best
knowledge, information and belief of the successful bidder and (2) 10% or more in par amount of the Bonds of each
maturity was reasonably expected to be sold on the Date of Sale to the public at the initial public offering price (such
amount being sufficient to establish the sale of a substantial amount of the Bonds).
CUSIP Numbers
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to
print such numbers on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the
successful bidder thereof to accept delivery of and pay for the Bonds in accordance with the terms of its bid. The
City will assume responsibility for the expense of the initial printing of CUSIP numbers; provided, however, that the
City assumes no responsibility for any CUSIP Service Bureau or other charges that may be imposed for the
assigmment of such numbers. All expenses in connection with the assignment of CUSIP numbers shall be paid by
the successful bidder. It shall be the obligation of the successful bidder to furnish to DTC an underwriter
questionnaire and to the City the CUSIP numbers for the Bonds within two business days following the date of
award.
Official Statement
The City will furnish the successful bidder at the expense of the City up to 300 copies of the fmal Official
Statement by the earlier of the closing date and seven business days from the date of the award of the Bonds, as
specified in Rule 15c2-12, as amended (the "Rule"), of the Securities and Exchange Commission (the "SEC") and
the rules of the MSRB provided that minor delays in furnishing such final Official Statement will not be a basis for
failure to pay for and accept delivery of the Bonds. Additional copies will be made available at the successful
bidder's request and expense. The City assumes no responsibility or obligation for the distribution or delivery of the
Official Statement to anyone other than the successful bidder.
The successful bidder agrees to provide one copy of the Official Statement to the Municipal Securities
Rulemaking Board using its Electronic Municipal Market Access System upon receipt of the Official Statement
from the City and two copies of the Official Statement (with any required forms) to the MSRB or its designee no
later than ten business days following the Date of Sale. The successful bidder shall notify the City as soon as
practicable of (1) the date which is the end of the underwriting period (such "underwriting period" is described in
the Rule), and (2) the date of filing the Official Statement with the MSRB or its designee.
If the Bonds are awarded to a syndicate, the City will designate the senior managing underwriter of the
syndicate as its agent for purposes of distributing copies of the Official Statement to each participating underwriter.
Any underwriter executing and delivering a bid form with respect to the Bonds agrees thereby that if its bid is
7
DRAFT 9/29/10
accepted it shall accept such designation and shall enter into a contractual relationship with all participating
underwriters for the purposes of assuring the receipt and distribution by each such participating underwriter of the
Official Statement, unless another firm is so designated by the syndicate in writing and approved by the City.
Legal Opinion
The approving opinion of Kaufinan & Canoles, a Professional Corporation, Norfolk, Virginia, Bond
Counsel, with respect to the Bonds will be furnished to the successful bidder at the expense of the City and will state
that the Bonds constitute limited obligations of the City, payable solely from Pledged Revenues, as defined in the
Preliminary Official Statement, dated , 2010, subject to the prior application thereof to the payment of
Operating Expenses and reserves established under the Agreement of Trust on a parity with other storm water utility
revenue bonds of the City.
Federal and State Securities Laws
No action has been taken to qualify the Bonds under the federal and state securities laws.
Tax Matters
The Preliminary Official Statement relating to the Bonds contains a discussion of the tax status of interest
received on the Bonds, whether issued as Tax-Exempt Bonds or Taxable BAB Bonds.
Continuing Disclosure
To assist the successful bidder in complying with the Rule, the City will agree, pursuant to the Continuing
Disclosure Agreement, to provide certain annual financial information and operating data and notices of the
occurrence of certain events. A description of this undertaking is set forth in the Preliminary Official Statement for
the Bonds and will also be set forth in the final Official Statement for the Bonds (See Appendix G of the Preliminary
Official Statement, dated , 2010).
Change of Date and Time for Receipt of Bids
The City expects to take bids on the Bonds on November 9, 2010. However, the City reserves the right to
postpone the date and time established for the receipt of bids. Any such postponement will be announced by the
Thomson Municipal Newswire ("TM3"), or any other such service. If the receipt of bids is postponed, any
alternative date for receipt of bids will be announced via TM3, or any other such service. Any bidder must submit a
bid for the purchase of the Bonds on such alternative sale date in conformity with the provisions of this Official
Notice of Sale, except for any changes announced via TM3, or any other such service used by the City for this
purpose, as described therein.
Additional Information
For further information relating to the Bonds and the City, reference is made to the City's Preliminary
Official Statement. The City has deemed the Preliminary Official Statement to be fmal as of its date within the
meaning of the Rule, except for the omission of certain pricing and other information permitted to be omitted
pursuant to the Rule. The Official Bid Form and the Preliminary Official Statement may be obtained from the
City's Financial Advisor, Government Finance Associates, Inc. (telephone 212-521-4090).
CITY OF VIRGINIA BEACH, VIRGINIA
By: James K. Spore
City Manager
Dated: , 2010
DRAFT 9/29/10
OFFICIAL NOTICE OF SALE
CITY OF VIRGINIA BEACH, VIRGINIA
$7,105,000*
STORM WATER UTILITY REFUNDING REVENUE BONDS, SERIES ZOlOB
Electronic bids only will be received by the City of Virginia Beach, Virginia (the "City"), in accordance
with this Official Notice of Sale until 12:30 P.M., Local Time, on Tuesday, November 9, 2010 (the "Date of Sale").
In the case of a malfunction in submitting an electronic bid, facsimile bids will be allowed, as more fully described
below.
Immediately thereafter, the bids will be publicly announced, and the City Manager will act upon the bids by
3:30 p.m., Local Time.
Bid Submission
Solely as an accommodation to bidders, electronic bids via BIDCOMP/PARITY (the "Electronic Bidding
System") will be accepted in accordance with this Official Notice of Sale. The City is using BIDCOMP/PARITY as
a communication mechanism to conduct the electronic bidding far the sale of $7,105,000* Storm Water Utility
Refunding Revenue Bonds, Series 2010B (the "Bonds"), as described herein. To the extent any instructions or
directions set forth in BIDCOMP/PARITY conflict with this Official Notice of Sale, the terms of this Official
Notice of Sale shall control. Each bidder submitting an electronic bid agrees (i) that it is solely responsible for all
arrangements with BIDCOMP/PARITY, (ii) that BIDCOMP/PARITY is not acting as the agent of the City, and (iii)
that the City is not responsible far ensuring or verifying bidder compliance with any of the procedures of
BIDCOMP/PARITY. The City assumes no responsibility for, and each bidder expressly assumes the risks of and
responsibility for, any incomplete, inaccurate or untimely bid submitted by such bidder through
BIDCOMP/PARITY. Each bidder shall be solely responsible for making necessary arrangements to access the
Electronic Bidding System for purposes of submitting its bid in a timely manner and in compliance with the
requirements of this Official Notice of Sale. Neither the City nor the Electronic Bidding System shall have any duty
or obligation to provide or assure such access to any bidder, and neither the City nor BIDCOMP/PARITY shall be
responsible for proper operation of, or have any liability for, any delays or interruptions of, or any damages caused
by, BIDCOMP/PARITY. For further information about BIDCOMP/PARITY, potential bidders may contact
BIDCOMP/PARITY at 1359 Broadway, 2nd Floor, New York, New Yark 10018, telephone (212) 849-5021.
In the event of a malfunction of the Electronic Bidding System, facsimile transmission bids will be
accepted up to 12:30 P.M., Local Time, on the Date of Sale. Bidders choosing to submit bids in the case of a
malfunction by facsimile transmission shall use the following telecopier numbers for such transmission: (757) 385-
4302 or (757) 385-8894 (Attention: Patricia A. Phillips). Transmissions received after the deadline shall be rejected.
It is the responsibility of the bidder to ensure that the bid is legible, that the bid is received not later than 12:30 P.M.,
Local Time, and that the bid is sent to one of the telecopier numbers set forth above. Illegible transmissions shall be
rejected. Government Finance Associates, Inc. ("Financial Advisor") will verify receipt of each bid submitted
through facsimile transmission by contacting each bidder by telephone once the bid has been received. The City's
Financial Advisor will in no instance correct, alter or in any way change bids submitted through facsimile
transmission. Neither the City nor its Financial Advisor will be responsible for bids submitted by facsimile
transmission not received in accordance with the provisions of this Official Notice of Sale. Bidders electing to
submit bids via facsimile transmission will bear full and complete responsibility for the transmission of such bid.
* Preliminary; subject to change.
DRAFT 9/29/10
Each bid must be unconditional.
Principal Redemption
The Bonds will be storm water utility refunding revenue bonds of the City, dated the date of delivery (the
"Dated Date"), and will mature serially or be subject to mandatory sinking fund redemptions on September 1 in the
years and amounts shown below.
Preliminary Preliminary
Due Se~tember 1 Amount* Due Se~tember 1 Amount*
2011 $ 470,000 2018 $ 500,000
2012 43 5,000 2019 S 10,000
2013 445,000 2020 525,000
2014 460,000 2021 535,000
2015 470,000 2022 565,000
2016 475,000 2023 595,000
2017 490,000 2024 630,000
Serial Bonds, Term Bonds and Mandatory Sinking Fund Redemptions
Bidders may provide in the bid form for all of the Bonds to be issued as serial Bonds or may designate
consecutive annual principal amounts of the Bonds to be combined into not more than two Term Bonds. In the
event that a bidder chooses to specify a Term Bond, each such Term Bond shall be subject to mandatory sinking
fund redemption commencing on September 1 of the first year which has been combined to form such Term Bond
and continuing on September lin each year thereafter until the stated maturity of such Term Bond. The amount
redeemed in any year shall be equal to the principal amount for such year set forth in the amortization schedule
above. Bonds to be redeemed in any year by mandatory sinking fund redemption shall be redeemed at par and shall
be selected by lot from among the maturities of the Term Bond being redeemed.
Description of the Bonds; Book-Entry Only System
The Bonds will be issued pursuant to an Agreement of Trust dated as of January 1, 2000, as previously
supplemented and as further supplemented by a Second Supplemental Agreement of Trust dated as of November 1,
2010 (collectively, the "Agreement of Trust"), all between the City and U.S. Bank National Association (successor
to First Union National Bank), Richmond, Virginia, as trustee (the "Trustee"). The Bonds will be issued by means
of a book-entry system with no distribution of physical Bond certificates made to the public. One Bond certificate
for each maturity will be issued to The Depository Trust Company, New York, New York ("DTC"), or its nominee,
and immobilized in its custody. The book-entry system will evidence beneficial ownership of the Bonds in principal
amounts of $5,000 or multiples thereof, with transfers of beneficial ownership effected on the records of DTC and
its participants pursuant to rules and procedures established by DTC and its participants. Bond certificates
registered in the name of Cede & Co. will be deposited with DTC. Interest on the Bonds will be paid semiannually
on March 1 and September 1, beginning March 1, 2011, and principal on the Bonds will be paid annually on
September 1, beginning September 1, 201 l, to DTC or its nominee as registered owner of the Bonds. Transfer of
principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such
participants and other nominees of beneficial owners. The City will not be responsible or liable for maintaining,
supervising or reviewing the records maintained by DTC, its participants or persons acting through such
participants.
* Preliminary; subject to change.
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DRAFT 9/29/10
DTC may discontinue providing its services as securities depository with respect to the Bonds at any time
by giving reasonable notice to the City. Under such circumstances, in the event that a successor securities
depository is not obtained, Bond certificates are required to be prepared, executed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor
securities depository). In that case, either a successor depository will be selected by the City or Bond certificates
will be prepared, executed and delivered.
Optional Redemption
The Bonds that mature on or before September 1, 2020 are not subject to optional redemption prior to their
stated maturities. The Bonds that mature on and after September 1, 2021 will be subject to redemption beginning
September 1, 2020, in whole or in part at any time, at the option of the City, upon payment of the par amount of
principal so redeemed plus interest accrued and unpaid to the redemption date.
Selection of Bonds for Redemption; Notice of Redemption
If less than all of the Bonds are called for optional redemption, the Bonds to be redeemed shall be selected
by the City's Director of Finance in such manner as may be determined to be in the best interest of the City. If less
than all of the Bonds of a particular maturity are called for redemption, DTC or any successor securities depository
will select the Bonds to be redeemed pursuant to its rules and procedures or, if the book-entry system is
discontinued, the Bonds to be redeemed will be selected by the City Treasurer, who has been appointed registrar (the
"Registrar"), by lot in such manner as the Registrar in its discretion may determine. In either case, each portion of
the $5,000 principal amount is counted as one Bond for such purpose.
The City will cause notice of the call for redemption identifying the Bonds or portions thereof to be
redeemed to be sent by the Trustee by facsimile transmission, registered or certified mail or overnight express
delivery, not less than 30 nor more than 60 days prior to the redemption date, to the registered owner thereof.
Neither the City nor the Trustee shall be responsible for mailing notice of redemption to anyone other than DTC or
another qualified securities depository ar its nominee unless no qualified securities depository is the registered
owner of the Bonds. If no qualified securities depository is the registered owner of the Bonds, notice of redemption
shall be mailed to the registered owners of the Bonds. If a portion of a Bond is called for redemption, a new Bond in
principal amount equal to the unredeemed portion shall be issued to the registered owner upon the surrender thereof.
Security
The Bonds are limited obligations of the City, payable solely from Pledged Revenues (as defined
in the Agreement of Trust and as more fully described in the Preliminary Official Statement, dated , 2010 ). The
Bonds shall not be deemed to constitute indebtedness of, or a pledge of the faith and credit of, the Commonwealth of
Virginia nor the faith and credit of any county, city, town or other subdivision of the Commonwealth of Virginia,
including the City. The issuance of the Bonds do not directly, indirectly or contingently obligate the
Commonwealth or any other political subdivision of the Commonwealth, including the City, to levy and collect any
taxes whatsoever or make any appropriation therefore except from the Pledged Revenues to the payment of the
principal of and premium, if any, and interest on the Bonds. In the Agreement of Trust, the City covenants to fix,
charge, collect and revise its fees, rates and other charges for the use of and for the services fiunished by the System
in each Fiscal Year so as to produce revenues sufficient to pay the cost of operation and maintenance, the cost of
necessary replacements and improvements and debt service on the Bonds and on any other indebtedness of the City
secured by such revenues, and to provide certain reserves therefore.
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DRAFT 9/29/10
Use of Bond Proceeds
As described in more detail in the City's Preliminary Official Statement, dated , 2010, the Bonds are
being issued for the purpose of providing funds for the refunding of all or a portion of the City's Storm Water Utility
Revenue Bonds, Series 2000, and to pay the costs of issuance related to the Bonds.
Bidding Rules; Award of Bonds
Bidders may only bid to purchase all of the Bonds. Bidders are invited to name the rate or rates of interest
per annum which the Bonds are to bear in multiples of one-twentieth (1/20th) or one-eighth (1/8th) of one percent.
All Bonds maturing on the same date must bear interest at the same rate. Any number of rates may be named
provided that (a) the highest rate of interest may not exceed the lowest rate of interest by more than 3 percentage
points, and (b) the highest rate of interest stated for any maturity may not exceed 3.5% per annum, but in no event
shall the "true" interest cost exceed 3.5%. No bid for less than par plus accrued interest (computed on the basis of a
360-day year and twelve 30-day months) shall be considered. The City reserves the right to reject any or all bids
(regardless of the interest rate bid), to reject any bid not complying with this Official Notice of Sale and, so far as
permitted by law, to waive any irregularity or informality with respect to any bid or the bidding process.
As promptly as reasonably possible after the bids are received, the City will notify the bidder to whom the
Bonds will be awarded, if and when such award is made. Such bidder, upon such notice, shall advise the City of the
initial reoffering prices or yields to the public of each maturity of the Bonds (the "Initial Reoffering Prices or
Yields") and details regarding the anticipated use of a municipal bond insurance policy, if any, in connection with
the Bonds. The successful bidder must reasonably expect to sell to the public 10% or more in par amount of the
Bonds from each maturity at the Initial Reoffering Prices or Yields. All bids will remain firm for a period of no
less than three hours after the time specified for the opening of bids. An award of the Bonds, if made, will be made
by the City within such three hour period or, with the express consent of the bidders, such longer time period as
deemed necessary.
Unless all bids are rejected, the Bonds will be awarded to the bidder complying with the terms of this
Official Notice of Sale and submitting a bid which provides the lowest "true" interest cost to the City. True interest
cost shall be determined for each bid by doubling the semiannual interest rate, compounded semiannually, necessary
to discount the debt service payments from the payment dates to the Dated Date, which is the date of settlement, and
to the bid price. If more than one bid offers the same lowest true interest cost, the successful bid will be selected by
the City Manager by lot. The City reserves the right to reject any or all bids and to waive any irregularity or
informality with respect to any bid.
Bids for the Bonds shall not be conditioned upon obtaining insurance or any other credit enhancement. If a
bidder proposes to obtain a policy of municipal bond insurance or any other credit enhancement, any such purchase
of insurance or commitment therefor shall be at the sole option and expense of the bidder, and the bidder must pay
any increased costs of issuance of the Bonds as a result of such insurance or commitment. Any failure by the bidder
to obtain such a policy of insurance shall not in any way relieve such bidder of its contractual obligations arising
from the acceptance of its bid for the purchase of the Bonds.
Adjustment of Principal Amount Prior to the Opening of Bids:
The preliminary aggregate principal amount of the Bonds and the preliminary annual principal maturities of
the Bonds, each as set forth in this Official Notice of Sale, may be revised by the City before the receipt of bids.
Any such revisions made prior to receipt of the bids will be published via TM3 Newswire (or some other municipal
newswire recognized by the municipal securities industry) and via BIDCOMP/PARITY no later than 9:00 a.m.
(Local Time) on the Date of Sale. In the event that no such revisions are made, the preliminary amounts will
constitute the amounts that shall be used for the bid and award of the Bonds, subject to further adjustment, as
described below.
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DRAFT 9/29/10
Adjustment of Principal Amount After Award:
The City reserves the right, after the award of the Bonds to the successful bidder, to increase or decrease by
up to ten percent (10%) the principal amount of the Bonds being offered hereby. The City may choose not to
exercise such right to increase or decrease the principal amount of the Bonds being offered. Should the City decide
to exercise this right, any such increase or decrease in the principal amount of particular maturities of the Bonds will
be communicated to the successful bidder by 5:00 p.m., Local Time, on the Date of Sale. The dollar amount bid for
the principal of the Bonds by the successful bidder will be adjusted as necessary to reflect any increase or decrease
in the principal amount of the applicable maturities of the Bonds so adjusted, but the interest rates specified by the
successful bidder for each maturity will not be altered. Such adjusted dollar amount bid will not change the
successful bidder's compensation per $1,000 of par amount of the Bonds from that which would have resulted
from the bid submitted. The successful bidder may not withdraw its bid as a result of any change made within the
foregoing limits.
Good Faith Deposit
The successful bidder for the Bonds is required to submit a Good Faith Deposit in the amount of $70,000
payable to the order of the City in the form of a wire transfer in federal funds, as instructed by the City's Financial
Advisor. The successful bidder must submit the Good Faith Deposit not later than 12:30 P.M., Local Time, on the
next business day following the award. The successful bidder shall provide the federal funds reference number upon
request of the City. If the successful bidder fails to comply with the terms of its bid, the Good Faith Deposit shall be
retained by the City as full liquidated damages; otherwise, the amount thereof will be applied to the purchase price
of the Bonds at the time of delivery. No interest on the Good Faith Deposit will accrue to the successful bidder.
Delivery of the Bonds
The Bonds will be delivered at the expense of the City in New York, New York, through the facilities of
DTC on or about November 16, 2010.
Concurrently with the delivery of the Bonds, the City will furnish to the successful bidder without cost (a) a
certificate dated the date of delivery of the Bonds, signed by the appropriate City officials and stating that no
litigation of any kind is then pending or, to the best of their information, Irnowledge and belief, threatened against
the City to restrain or enjoin the issuance or delivery of the Bonds and (b) certificates dated the date of delivery of
the Bonds, stating that the descriptions and statements in the Official Statement (except in the sections entitled
"Book-Entry System" and "Tax Matters" and in the columns "Price/ Yield" and "CUSIP No." on the inside cover),
on the date of the Official Statement and on the date of delivery of the Bonds, were and are true and correct in all
material respects, did not and do not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make such descriptions and statements, in light of the circumstances
under which they were made, not misleading. Such certificates will also state, however, that such City officials did
not independently verify the information indicated in the Official Statement as having been obtained or derived from
sources other than the City and its officers but they have no reason to believe that such information is not accurate.
Certificate of Winning Bidder
The successful bidder must, by facsimile transmission or overnight delivery received by the City within 24
hours after receipt of the bids for the Bonds, furnish the following information to the City to complete the Official
Statement in fmal form, as described below:
A. The offering prices for the Bonds (expressed as the price or yield per maturity, exclusive of any
accrued interest).
5
DRAFT 9/29/10
B. Selling compensation (aggregate total anticipated compensation to the underwriters expressed in
dollars, based on the expectation that all Bonds are sold at the prices or yields described in Subpart
A above).
C. The identity of the underwriters if the successful bidder is a part of a group ar syndicate.
D. Any other material information necessary to complete the Official Statement in final form but not
known to the City.
Prior to the delivery of the Bonds, the successful bidder shall furnish to the City a certificate in form
acceptable to bond counsel, to the effect that the successful bidder has made a bona fide public offering of the Bonds
at the initial public offering prices set forth in such certificate, that the successful bidder has complied with Rule G-
37 of the Municipal Securities Rulemaking Board (the "MSRB") with respect to the City and that a substantial
amount of the Bonds of each maturity were sold to the public (excluding bond houses, brokers and other
intermediaries) at such initial public offering prices. Such certificate shall state that (1) it is made on the best
knowledge, information and belief of the successful bidder and (2) 10% or more in par amount of the Bonds of each
maturity was reasonably expected to be sold on the Date of Sale to the public at the initial public offering price (such
amount being sufficient to establish the sale of a substantial amount of the Bonds).
CUSIP Numbers
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to
print such numbers on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the
successful bidder thereof to accept delivery of and pay for the Bonds in accordance with the terms of its bid. The
City will assume responsibility for the expense of the initial printing of CUSIP numbers; provided, however, that the
City assumes no responsibility for any CUSIP Service Bureau or other charges that may be imposed for the
assignment of such numbers. All expenses in connection with the assignment of CUSIP numbers shall be paid by
the successful bidder. It shall be the obligation of the successful bidder to furnish to DTC an underwriter
questionnaire and to the City the CUSIP numbers for the Bonds within two business days following the date of
award.
Official Statement
The City will furnish the successful bidder at the expense of the City up to 250 copies of the fmal Official
Statement by the earlier of the closing date and seven business days from the date of the award of the Bonds, as
specified in Rule 15c2-12, as amended (the "Rule"), of the Securities and Exchange Commission (the "SEC") and
the rules of the MSRB provided that minor delays in furnishing such fmal Official Statement will not be a basis for
failure to pay for and accept delivery of the Bonds. Additional copies will be made available at the successful
bidder's request and expense. The City assumes no responsibility or obligation for the distribution or delivery of the
Official Statement to anyone other than the successful bidder.
The successful bidder agrees to provide one copy of the Official Statement to the Municipal Securities
Rulemaking Board using its Electronic Municipal Market Access System upon receipt of the Official Statement
from the City and two copies of the Official Statement (with any required forms) to the MSRB or its designee no
later than ten business days following the Date of Sale. The successful bidder shall notify the City as soon as
practicable of (1) the date which is the end of the underwriting period (such "underwriting period" is described in
the Rule), and (2) the date of filing the Official Statement with the MSRB or its designee.
If the Bonds are awarded to a syndicate, the City will designate the senior managing underwriter of the
syndicate as its agent for purposes of distributing copies of the Official Statement to each participating underwriter.
Any underwriter executing and delivering a bid form with respect to the Bonds agrees thereby that if its bid is
accepted it shall accept such designation and shall enter into a contractual relationship with all participating
underwriters for the purposes of assuring the receipt and distribution by each such participating underwriter of the
Official Statement, unless another firm is so designated by the syndicate in writing and approved by the City.
6
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Legal Opinion
The approving opinion of Kaufman & Canoles, a Professional Corporation, Norfolk, Virginia, with respect
to the Bonds will be furnished to the successful bidder at the expense of the City and will state that the Bonds
constitute limited obligations of the City, payable solely from Pledged Revenues, as defined in the Preliminary
Official Statement, dated , 2010, subject to the prior application thereof to the payment of Operating Expenses
and reserves established under the Agreement of Trust on parity with other storm water utility revenue bonds of the
City.
Federal and State Securities Laws
No action has been taken to qualify the Bonds under the federal and state securities laws.
Tax Exemption
The Preliminary Official Statement relating to the Bonds contains a discussion of the effect of the Internal
Revenue Code of 1986, as amended, on the exclusion from gross income of interest on the Bonds and also containes
the proposed form of the opinion of Kaufinan & Canoles, a Professional Corporation, Norfolk, Virginia, insofar as it
concerns such exclusion.
Continuing Disclosure
To assist the successful bidder in complying with the Rule, the City will agree, pursuant to the Continuing
Disclosure Agreement, to provide certain annual financial information and operating data and notices of the
occurrence of certain events. A description of this undertaking is set forth in the Preliminary Official Statement for
the Bonds and will also be set forth in the fmal Official Statement for the Bonds (See Appendix G of the Preliminary
Official Statement dated , 2010).
Change of Date and Time for Receipt of Bids
The City expects to take bids on the Bonds on November 9, 2010. However, the City reserves the right to
postpone the date and time established for the receipt of bids. Any such postponement will be announced by the
Thomson Municipal Newswire ("TM3"), or any other such service. If the receipt of bids is postponed, any
alternative date for receipt of bids will be announced via TM3, or any other such service. Any bidder must submit a
bid for the purchase of the Bonds on such alternative sale date in conformity with the provisions of this Official
Notice of Sale, except for any changes announced via TM3, or any other such service used by the City for this
purpose, as described therein.
Add itional Info rm ation
For further information relating to the Bonds and the City, reference is made to the City's Preliminary
Official Statement. The City has deemed the Preliminary Official Statement to be final as of its date within the
meaning of the Rule, except for the omission of certain pricing and other information permitted to be omitted
pursuant to the Rule. The Official Bid Form and the Preliminary Official Statement may be obtained from the
City's Financial Advisor, Government Finance Associates, Inc. (telephone 212-521-4090).
CITY OF VIRGINIA BEACH, VIRGINIA
By: James K. Spore
City Manager
Dated: , 2010
7
DRAFT 9/29/2010
CONTINUING DISCLOSURE AGREEMENT
This CONTINUING DISCLOSURE AGREEMENT dated November , 2010 (the
"Disclosure Agreement"), is executed and delivered by the City of Virginia Beach, Virginia (the
"City"), in connection with the issuance of the issuance of its $ Storm Water Utility
Revenue [and Refunding] Bonds, Series 2010A-1 (Tax-Exempt), its $ Storm Water
Utility Revenue Bonds, Series 2010A-2 (Taxable-Build America Bonds), and its $
Storm Water Utility Refunding Revenue Bonds, Series 2010B (Tax-Exempt) (collectively, the
"Bonds"). The City hereby covenants and agrees as follows:
Section 1. Purpose. This Disclosure Agreement is being executed and delivered by the
City for the benefit of the holders of the Bonds and in order to assist the original purchasers of
the Bonds in complying with the provisions of Section (b)(5)(i) of Rule 15c2-12, including the
amendments thereto that will become effective on December 1, 2010 (the "Rule"), promulgated
by the Securities and Exchange Commission (the "SEC") by providing certain annual financial
information and event notices required by the Rule.
Section 2. Annual Disclosure. (a) The City shall provide annually financial
information and operating data in accordance with the provisions of Section (b)(5)(i) of the Rule
as follows:
(i) audited financial statements of the City's storm water enterprise fund, prepared
in accordance with generally accepted accounting principles; and
(ii) operating data with respect to the City's storm water disposal system of the
type described in the City's Official Statement dated November , 2010, under the
captions "Storm Water Utility Fees," and "Pro Forma Calculation of Revenue Covenant."
If the financial statements filed pursuant to Section 2(a) are not audited, the City shall file such
statements as audited when available.
(b) The City shall file annually with the Municipal Securities Rulemaking
Board ("MSRB") the financial information and operating data described in subsection (a) above
(collectively, the "Annual Disclosure") within 180 days after the end of the City's fiscal year,
commencing with the City's fiscal year ending June 30, 2010.
(c) Any Annual Disclosure may be included by specific reference to other
documents previously provided to the MSRB or filed with the SEC; provided, however, that any
final official statement incorporated by reference must be available from the MSRB.
(d) The City shall file with the MSRB in a timely manner notice specifying
any failure of the City to provide the Annual Disclosure by the date specified.
Section 3. Event Disclosure. The City shall file with the MSRB in a timely manner not
in excess of ten (10) business days after the occurrence of the event, notice of the occurrence of
any of the following events with respect to the Bonds:
(a) principal and interest payment delinquencies;
(b) non-payment related defaults, if material;
(c) unscheduled draws on debt service reserves reflecting financial
difficulties;
(d) unscheduled draws on any credit enhancement reflecting financial
difficulties;
(e) substitution of credit or liquidity providers, or their failure to perform;
(~ adverse tax opinions, the issuance by the IRS of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-
TEB) or other material notices or determinations with respect to the tax
status of the Bonds, or other material events affecting the tax status of the
Bonds;
(g) modifications to rights of Bondholders, if material;
(h) bond calls, if material, and tender offers;
(i) defeasance of all or any portion of the Bonds;
(j) release, substitution, or sale of property securing repayment of the Bonds,
if material;
(k) rating changes;
(1) bankruptcy, insolvency, receivership or similar event of the City;
(m) the consuinmation of a merger, consolidation, or acquisition involving the
City or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake such an
action or the termination of a definitive agreement relating to any such actions, other than
pursuant to its terms, if material; and
(n) appointment of a successor or additional trustee or the change of name of
a trustee, if material.
Section 4. Termination. The obligations of the City hereunder will terminate upon the
redemption, defeasance (within the meaning of the Rule) or payment in full of all the Bonds.
Section 5. Amendment. The City may modify its obligations hereunder without the
consent of Bondholders, provided that this Disclosure Agreement as so modified complies with
the Rule as it exists at the time of modification. The City shall within a reasonable time
thereafter file with the MSRB a description of such modification(s).
Section 6. Defaults. (a) If the City fails to comply with any covenant or obligation
regarding Continuing Disclosure specified in this Disclosure Agreement, any holder (within the
2
meaning of the Rule) or beneficial holder of Bonds then outstanding may, by notice to the City,
proceed to protect and enforce its rights and the rights of the holders by an action for specific
performance of the City's covenant to provide the Continuing Disclosure.
(b) Notwithstanding anything herein to the contrary, any failure of the City to
comply with any obligation regarding Continuing Disclosure specified in this Disclosure
Agreement (i) shall not be deemed to constitute an event of default under the Bonds ar the
resolution providing for the issuance of the Bonds and (ii) shall not give rise to any right or
remedy other than that described in Section 6(a) above.
Section 7. Filing Method. Any filing required hereunder shall be made by transmitting such
disclosure, notice or other information in electronic format to the MSRB through the MSRB's
Electronic Municipal Market Access (EMMA) system pursuant to procedures promulgated by
the MSRB.
Section 8. Additional Disclosure. The City may from time to time disclose certain
information and data in addition to the Continuing Disclosure. Notwithstanding anything herein
to the contrary, the City shall not incur any obligation to continue to provide, or to update, such
additional information or data.
Section 9. Counterparts. This Disclosure Agreement may be executed in several
counterparts each of which shall be an original and all of which shall constitute but one and the
same instrument.
Section 10. Governing Law. This Disclosure Agreement shall be construed and
enforced in accordance with the laws of the Commonwealth of Virginia.
CITY OF VIRGINIA BEACH, VIRGINIA
Mayor, City of Virginia Beach, Virginia
City Manager, City of Virginia Beach, Virginia
3
-19-
Item V-J.3.
ORDINANCES/RESOL UTIONS ITEM # 60344
Upon motion by vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY
CONSENT:
Resolution REQUESTING the City's Delegation to the 2011 General
Assembly Session support Legislation that will meet the Ciry's goals and
objectives set forth in the 2011 Legislative Agenda
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
October 12, 2010
1 A RESOLUTION ADOPTING THE CITY'S 2011
2 LEGISLATIVE AGENDA
3
4 WHEREAS, the City Council traditionally adopts a Legislative Agenda and
5 requests member of the City's local delegation to the General Assembly sponsor and/or
6 support legislation therein; and
7
8 WHEREAS, the City Council has considered a number of goals and objectives
9 for inclusion in the City's 2011 Community Legislative Agenda.
10
11 NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
12 VIRGINIA BEACH, VIRGINIA:
13
14 That the City Council hereby adopts the City's 2011 Legislative Agenda, which is
15 attached hereto as Exhibit A and is hereby incorporated by reference.
16
17 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA
18 BEACH, VIRGINIA:
19 ~
20 That the City's Delegation to the General Assembly is hereby requested to
21 sponsor and/or support legislation in the 2011 Session of the General Assembly that
22 would carry out the goals and objectives of the City as set forth in its Community
23 Legislative Agenda.
24
25 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA
26 BEACH, VIRGINIA:
27
28 That the City Clerk is hereby directed to transmit a copy of this resolution to each
29 member of the City's local Delegation to the General Assembly.
30
31 Adopted by the City Council of the City of Virginia Beach, Virginia, this ~ 2th
32 day of nctober , 2010.
APPROVED TO CONTENT:
APPROVED AS TO LEGAL
SUFFICIENCY:
,
City M ger's ic
~~~ ~
City Attorney's Office
CA 11595
R-2
September 16, 2010
LEGISLATIVE AGENDA
GENERAL ASSEMBLY SESSION 2011
CITY OF VIRGINIA BEACH
~EGISLATIVE AGENDA
GENERAL ASSEMBLY SESSION 2011
OCTOBER 12, 2010
CITY COUNCIL MEETING
Appendix: Drafts of Proposed Legislation-Keyed to Requested Code Changes ...........................22
Reckless Operation of Paddleboards ........................................................................................................................23
Procedures for Notifying Accused of Certificate ofAnalysis; Waiver; Continuances ...........................24
, Y ...............................................................................................................................
Riding on Motorcycles Generall 25
Possessing Firearm While Under the Influence of Alcohol or Illegal Drugs .............................................26
Criminal History Record Information Check for Transfer of Certain Firearms ......................................27
Issuing Civil Summons via Contractor Working on Behalf of a Municipality ....................................28-31
Sales Tax Capture for Hotel Development Adjacent or Connected to the Convention Center...32-34
Passing Bicycles .................................................................................................................................................................35
The 2011 Session of the General Assembly will be, as always, very important to the
Commonwealth. Although it is not likely there will be the $4 billion shortfall for the General
Assembly to deal with as was the case with the 2010 session; the second year of the biennium
budget will certainly be difficult, nontheless. After addressing the unprecedented revenue
shortfalls during the last session, there is still great uncertainty with the economy as this is
written. The possibility of a double dip recession is still quite strong and although the
Commonwealth's unemployment rate at approximately 7% is very good considering other states
east of the Mississippi, it is still too high for those that are unemployed. The housing industry,
which is vitally important to the economy of the Commonwealth, it is still in the doldrums and
will likely stay there for many months into the future.
As always there will be policy decisions made during the 2011 session that will have tremendous
impact on the lives of Virginians. The City is very appreciative of Governor McDonnell's
efforts to reform State government in order to make it more effective; as well as his and
Lieutenant Governor Boling's efforts to create more jobs throughout the Commonwealth. More
jobs and a more effective government will assist in addressing additional economic issues and
prepare the Commonwealth for quick growth as the economy overall improves.
The City is concerned, as are all local governments, about the possibility of ABC privatization,
however. Currently, approximately $220 million per year goes to the General Fund, which helps
to fund schools, public safety and many other basic services. Also, there are questions about the
local governments control over ABC stores if they were to be privatized. We ask that those
concerns are faremost in the deliberations as we move forward with government reform and
overhaul, especially the privatization of ABC stores.
As the City has been saying for many years, the General Assembly has attempted repeatedly to
address transportation and has been unsuccessful. Although HB3202 would have created
tremendous amounts of new revenue for the Commonwealth and especially for Hampton Roads
and Northern Virginia, those efforts went wasted because of the ruling of the State Supreme
Court. The City of Virginia Beach now receives zero dollars from the Commonwealth for urban
street construction, down from an amount in the mid $30 million amount just a few years ago.
Transportation has become a quality of life issue and is leading to decreased economic
development and productivity. What is most troubling about the inability of General Assembly
to react to the transportation crisis, is senior officials of the Navy repeatedly saying that they
would not support additional commands coming to Hampton Roads until we address our
transportation issues. This must be addressed as soon as possible.
1
In last, as has been previously stated in the past, City Council continues to be concerned about
the level of funding available for basic services like education, social services and public safety.
Perhaps the Governors Reform Commission will determine more appropriate levels of State
funding and responsibility for these services. This is an issue that should and must be addressed
as soon as possible.
We wish the General Assembly members the best in the upcoming 2011 session.
2
1. RECKLESS OPERATION OF PADDLEBOARDS
ChiefJamesA. Cervera
Department of Police
Background Information;
Virginia Code §29.1-738 prohibits, among other things, the operation of surfboards or "similar
devices" in a reckless manner so as to endanger the life, limb, or property of any person.
Paddleboards are large, heavy boards used for recreational purposes in coastal waters. Because
the use of paddleboards could create a safety hazard for swimmers or persons wading into the
water, the City seeks an amendment to Virginia Code § 29.1-738 to clarify that the reckless
operation of a paddleboard so as to endanger the life, limb, or property of any person will be
treated under the law the same as the reckless operation of a surfUoard.
Request:
We request that the General Assembly amend Virginia Code § 29.1-738 to define "similar
device" so as to include paddleboards.
See Appendix Item 1(page 24) for the text of the requested legislative change.
3
2, PROCEDURES FOR NOTIFYING ACCUSED OF CERTIFICATE OF ANALYSIS;
WAIVER; CONTINUANCES
ChiefJamesA. Cervera
Department of Police
Background Information:
The issue involves giving notice to a person that the arresting officer intends to use a
certificate of analysis in court. The code currently requires a copy to be filed with the court
the same day it is given to the accused. An officer can't possibly comply with this
requirement if a person is arrested on a Friday night and is given a copy of the certificate of
analysis and notice. Since the notice form does not reach the clerk's office until Monday, it
is several days late. This has resulted in several breath test results being thrown out of
court and on some occasions the entire DUI case being lost.
Request:
We request that the General Assembly amend Virginia Code § 19.2-187.1 to give an officer
7 days to file the copy.
See Appendix Item 2(page 25) for text of the requested legislative change.
4
3. RIDING ON MOTORCYCLES, GENERALLY
ChiefJamesA. Cervera
Department of Police
Background Information:
Increased fuel costs are causing an increase in motorcycle usage. We are also seeing an
increase in passengers on motorcycles. Since there are no safety devices manufactured for
children and toddlers, it is quite unsafe and impractical for a child under the age of 8 to ride
on a motorcycle. It is also quite difficult for most children under the age of 9 to stay on the
motorcycle while it is in operation.
Request:
We request that the General Assembly amend Virginia Code § 46.2-909 to prohibit any
person under the age of 9 from riding on a motorcycle on any public street or highway.
See Appendix Item 3(page 26) for text of the requested legislative change.
5
4. POSSESSING FIREARM WHILE UNDER THE INFLUENCE OF ALCOHOL OR
ILLEGAL DRUGS
ChiefJamesA. Cervera
Department of Police
Background Information:
Police officers are increasingly coming into contact with individuals that are legally
carrying a firearm while intoxicated. There is no practical difference between "open carry"
and concealed carry if the possessor is intoxicated. We therefore request that Virginia
Code § 18.2-308 be amended to prohibit openly carrying a firearm or having it in plain
view in a vehicle while intoxicated. The current Code prohibits a person with a concealed
handgun permit to carry the handgun if they are intoxicated but there is no prohibition for
a person to possess a firearm in plain view or "open carry" if they are intoxicated.
Request:
We request that the General Assembly amend Virginia Code § 18.2-308 so that any person
who is under the influence of alcohol or illegal drugs while possessing a firearm in a public
place shall be guilty of a Class 1 misdemeanor.
See Appendix Item 4(page 27) for text of the requested legislative change.
6
5. CRIMINAL HISTORY RECORD INFORMATION CHECK FOR TRANSFER OF
CERTAIN FIREARMS
Councilmember Bill DeSteph
Background Information:
State law requires a gun dealer selling a firearm to an individual to obtain criminal history
record information from the Department of State Police prior to completing the sale.
Certain individuals and transactions are exempt from the background check requirements.
A person who purchases a handgun in a private sale is exempt from the background check
requirements. Questions have arisen in enforcing this law as to whether a dealer can have
"business inventory" and a separate "personal inventory" of firearms that may qualify for
the private sale exemption. As currently written, the law references sales or transfers from
a dealer's inventory, but does not distinguish between a dealer's business inventory and a
dealer's personal inventory.
Request:
In an effort to better protect citizens and to clarify that criminal history record information
checks are required for firearm sales by a gun dealer, regardless of whether those firearms
are part of his business inventory or his personal inventory, we request that the General
Assembly amend Virginia Code §§ 18.2-308.2:2(B)(1) and 18.2-308.2:2(C) to delete the
three occurrences of the phrase "from his inventory.")
See Appendix Item 5(page 28) for text of the requested legislative change.
7
6. ISSUING CIVIL SUMMONS VIA CONTRACTOR WORKING ON BEHALF OF A
MUNICIPALITY
Tom Leahy
Department of Public Utilities
Background Infof~niation:
Virginia Code § 15.2-2122 empowers localities and their employees to take certain steps to
protect public health, including the authority to establish civil penalties for violations of fats,
oils, and grease standards. The state code provision currently only grants a municipal employee
the authority to issue civil summonses. The City uses contractors in furtherance of its fats, oils,
and grease regulations, so we are proposing a change to this state code provision that would
authorize a contractor working on behalf of a municipality to issue civil summonses. The
contractor will be required to have the appropriate certifications from the Virginia Depariment of
Housing and Community Development; and the Director of the Department of Public Utilities or
his designee must authorize for issuance of the civil summons by the contractor.
Request:
See Appendix Item 6(page 29) for text of the requested legislative change.
8
7. DISABILITY RETIREMENT: INELIGIBILITY FOR MALFEASANCE IN OFFICE
Patti Phillips
Department of Finance
Background Information:
Presently employees are entitled to disability retirement when an injury renders them
unable to perform the essential functions of their specific job regardless of whether they
were terminated or cause for termination existed due to egregious misconduct in office.
Although this situation may not occur regularly, there have been instances where
employees were ultimately granted disability retirement despite criminal convictions for
illegal conduct that occurred in office or, perhaps less egregious, when cause for
termination existed at the time of separation due to ongoing administrative investigations.
While Virginia Code § 51.1-153(C) sets forth that "no member shall be entitled to the
benefits of this subsection if his employer certifies that his service was terminated because
of dishonesty, malfeasance or misfeasance in office", the disability retirement code section
lacks similar provisions. Localities and citizens should not be taxed with providing
disability retirement benefits for employees who have undertaken egregious indiscretions.
Request:
The General Assembly is requested to amend Virginia Code § 51.1-156 disability
retirement to add a section as follows:
No member shall be entitled to the benefits of this section if his employer certifies that the
employee was separated from service because of dishonesty, malfeasance, or misfeasance
in office or the member is convicted of a felony involving malfeasance, misfeasance or other
abuse of office.
9
8. STATUTORY RESTRICTION ON REDUCING, ELIMINATING OR DIVERTING
LOCAL REVENUE STREAMS
Councilmember Davis
Background Information:
The City, like other localities, relies heavily upon existing local revenue streams. A handful of
the subjects of taxation are segregated for local taxation by the Virginia Constitution while other
taxes and local revenue streams are separately authorized by the Virginia Code. However, local
taxes are assessed and collected in such a manner and at such times as the General Assembly
prescribes by general law. Thus, changes to these local revenue streams, such as Personal
Property Tax Relief and the overhaul of the Telecommunications Tax, were felt most acutely at
the local level.
On April 3, 2007, the City Council adopted a resolution establishing a Blue-Ribbon Tax, Fee,
and Spending Task Force to study means of reducing the City's dependence on the real estate tax
as a revenue source. In its final report, the Task Force concluded that the City can reduce its
reliance on the real estate tax by diversifying the City's revenue streams. To reach this goal and
other budgetary requirements, the City requires predictability in existing revenue streams. The
City recognizes that revisions to some of these revenue streams may be needed in light of
changes in circumstances since the time when these revenue streams were first established, and
the City is in the process of reviewing those revenue streams. Because of the local impacts of
any such changes, however, the City believes that the difficult decisions affecting local revenues
ought to be made at the local level.
Request:
The City requests that the General Assembly enact a mandate that the State, through the General
Assembly, not take any action to reduce, eliminate, or divert any existing revenue streams that
flow directly to localities unless the General Assembly creates a new revenue stream, or
enhances an existing revenue stream, to replace the eliminated revenue stream. This request
expressly excludes any funding mechanism that flows through the State's General Fund.
10
9. SALES TAX CAPTURE FOR HOTEL DEVELOPMENT ADJACENT OR CONNECTED
TO THE CONVENTION CENTER
Patti Phillips
Department of Finance
Background Information:
A number of localities, starting with Roanoke in 1995, have received authority from the
General Assembly to capture a portion of the sales tax generated from a public facility such
as an auditorium, a coliseum, a convention center, or a conference center. In the 2009
General Assembly Session, the City of Virginia Beach was added to the list of localities
eligible for this sales tax capture.
The definition of "public facility" provided for the sales tax capture in Virginia Code § 58.1-
608.3 includes "any hotel which is attached to and is an integral part of such facility." The
City seeks a legislative clarification for a hotel that is both adjacent to a publicly owned
convention center and is the result of a public-private partnership between a municipality
and a private entity where the municipality contributes infrastructure, land or conference
space.
Additionally, the window of time for the issuance of bonds entitled to the sales tax capture
will close on July 1, 2012. The City seeks an extension of this window to July 1, 2015.
Request:
The City requests that the General Assembly amend § 58.1-608.3 to clarify the definition of
a"public facility" to include a hotel that is both adjacent to a publicly owned convention
center and is the result of a public-private partnership between a municipality and a
private entity where the municipality contributes infrastructure, land or conference space.
The City also requests extending the window of time for the issuance of bonds from July 1,
2012toJuly1,2015.
See Appendix Item 9(page 33) for text of the requested legislative change.
11
10. POST LABOR DAY OPENING FOR SCHOOLS
Jim Ricketts
Department of Convention and Visitors Bureau
Background Information:
The total economic impact of the tourism industry in Virginia Beach for calendar year 2008
was $1.42 billion, stimulating 13,600 jobs. Starting schools in Virginia Beach and other
localities in the Commonwealth prior to Labor Day would have significant financial
consequences in the long term. Beginning schools prior to Labor Day would effectively
reduce the available vacation time in August by two weeks, which is prime family vacation
time that cannot be replaced. If the Virginia Beach school system begins before Labor Day
and other localities follow our lead, it will have a negative effect on the economic impact of
the tourism industry. To a lesser extent, this will also have an impact on this industry by
affecting the labor pool available prior to Labor Day.
Request:
The General Assembly is requested to maintain the existing legislation concerning post
Labor Day opening of schools. This allows all schools to open after Labor Day except those
given exemptions by the State Board of Education.
12
11. COURT FINES AND FEES
james K. Spore
City Manager
Background:
On April 3, 2007, Virginia Beach City Council appointed a Blue Ribbon Tax, Fee and
Spending Task Force. It was created to identify alternative tax and fee funding sources and
spending policies and strategies; moreover it was divided into revenue and expenditure
committees.
On November 30, 2007, the Task Force presented revenue generating recommendations to
City Council. In the final report, they indicated a need to increase court fines and fees to
offset the cost of police officer court appearances and overtime associated with their
presence.l
Presently, the fines and fees offset 100% of the courts' operating costs with an additional
2% for all other additional costs. While the 2% can be applied toward the cost of police
officer presence, the offset is minimal.
Request:
Request that the General Assembly adjust the maximum misdemeanor fine schedule
annually by the rate of inflation.
1 Blue Ribbon Tax, Fee and Spending Task Force Report to Council, November 30, 2007, Sec. 7.4j, p. 19.
13
12. COURTHOUSE MAINTENANCE FEE
James K. Spore
City Manager
Background Information:
On April 3, 2007, Virginia Beach City Council appointed a Blue Ribbon Tax, Fee and
Spending Task Force. It was created to identify alternative tax and fee funding sources and
spending policies and strategies; moreover it was divided into revenue and expenditure
committees.
On November 30, 2007, the Task Force presented revenue generating recommendations to
City Council. In the final report, they indicated a need to increase the courthouse
maintenance fee biennially to keep pace with the cost of maintaining the City's courthouse.z
Presently, the City of Virginia Beach's rate is $2/criminal or traffic case, and the City's
caseload is the highest in the state. The cost of maintaining this heavily used facility is
increasing.
Request:
In accordance with the Blue Ribbon Committee's suggestion, the City of Virginia Beach
requests the General Assembly allow localities to adjust the Courthouse Maintenance Fee
schedule to reflect a biennial increase based upon the rate of inflation. If the fee would
have been indexed against inflation five years ago, the City would have increased revenues
5.18% and generated an additional $89,352. The table data in the below indicate the
adiusted fee based upon the rate of inflation for the past five years.
Courthouse Maintenance Fees
Fiscal Actual Inflated Revenue Percent
Year CPI1 Inflation Fee Revenues Revenues Change Change
2010 Z 216.74 238% 2.33 $ 126,904 $ 147,892 $ 20,988 16.54%
2009 214.66 2.28 164,935 187,743 22,808 13.83%
2008 211.70 6.38% 2.28 152,422 173,500 21,078 13.83%
2007 204.14 2.14 149, 636 160,111 10, 475 7.00%
2006 199. 0 6.93 % 2.14 202, 021 216, 025 14, 004 6.93%
2005 191. 7 2. 00 199, 620 199, 620 - 0.00 %
2004 186.1 2. 00 208, 647 208, 647 - 0.00%
Total $1, 204,185 $1, 293, 537 $ 89, 352 7.42%
1. Computed on a fisca l year basis.2. represents unaud ited revenuefi gures.
Source: Virginio Beach Depa~tmeni of Management5ervices
2 Blue Ribbon Tax, Fee and Spending Task Force Report to Council, November 30, 2007, Sec. 7.4a, p. 16.
14
13. HISTORICAL PROPERTY TAX INCENTIVES
Virginia Beach Historic Preservation Commission
Background:
Stronger incentives are needed for homeowners whose properties are listed on the state's
historical register, officially known as The Virginia Landmarks Register, to voluntarily
maintain the historical character and integrity of their homes. Such incentives for voluntary
preservation are particularly critical in cities such as Virginia Beach in which historical
properties are not clustered together and therefore do not lend themselves to the creation
of historical districts in which preservation standards are typically maintained through
ordinances.
Current state laws allow municipalities to offer incentives in the way of historical tax
abatements on certain types of capital improvements. Virginia Beach has enacted such
ordinances over past years. However, the appeal of this program to qualifying private
homeowners has been very weak, as evidenced by the fact that none have yet sought to
participate.
Request:
Request that the General Assembly add a new code section, modeled after Virginia Code §
5£3.1-3221.2 ("Energy Efficient Buildings), creating a separate classification of real property
for houses and other structures that are listed on The Virginia Landmarks Register. This
classification would allow the Ciry or any other Virginia locality to af~x a tax rate that is
either the same or less than the tax rate applicable to the general class of real property.
It is estimated in Virginia Beach that there are no more than 50 private properties in terms
of those which are either already on, or could qualify, for The Virginia Landmarks Register.
Therefore, the impact on our total tax revenues would be minirnal. On the other hand, since
these are the only privately owned historical properties we have left in our City, the impact
upon our history could be very great.
15
14. EXPANSION OF THE VIRGINIA HUMAN RIGHTS ACT
Virginia Beach Human Rights Commission
Backgfround Information:
The Virginia Human Rights Act (Va. Code ~2.2-3900 et seq.) currently prohibits discrimination
based on race, color, religion, national origin, sex, pregnancy, childbirth or related medical
conditions, age, marital status, or disability. The City of Virginia Beach has prohibited the
aforementioned since 1994.
Request:
The City requests that the General Assembly amend the Virginia Human Rights Act to also
prohibit discrimination based on sexual orientation.
16
1S. PASSING BICYCLES
Councilmember Bill DeSteph
Backg~°ound Information:
State law currently provides that a driver overtaking a bicycle shall pass at least two feet to the
left of the overtaken bicycle and not proceed to the right side of the highway until safely clear of
the overtaken bicycle. A nationwide movement on behalf of bicyclists has sought to broaden the
clearing distance to three feet, and such changes have been enacted in several other states. This
change would better protect the safety of both bicyclists and motorists.
Request:
Change the passing distance from two feet to three feet. See Appendix Item 15 (page 36) for text
of the requested legislative change.
17
1 C. STATE LEGISLATION THAT WOULD ENABLE LOCALITIES TO HAVE A CHOICE BETWEEN
PROVIDING NEW EMPLOYEES WITH A DEFINED BENEFIT RETIREMENT PLAN OR A
DEFINED CONTRIBUTION RETIREMENT PLAN
Councilme~nber Glenn Davis
Backg~round:
The City of Virginia Beach's employees participate in the defined benefit retirement plan that is
offered by Virginia Retirement System ("VRS"). This defined benefit retirement plan is based
on a formula that includes age at retirement, average final compensation, and years of service to
calculate a retiree's benefit, but the benefit is not based upon accumulated contributions and
gains or losses in each member's account.
Every two years VRS actuarially computes the annual required rates of contributions for the City
of Virginia Beach, as a separately rated employer, based upon an actuarial valuation of the
retirement allowances and other defined benefits payable on behalf of active Virginia Beach
employees in VRS. The valuation includes actual service and disability retirements, assumptions
on life spans, disability rates, and turnover of the workforce. The City of Virginia Beach
contributes both the employee portion (5%) as well as the employer portion of the contributions.
Current combined rates for the employer and employee portion of VRS rates totals 16.48% of
total covered payroll, and is paid entirely by the City of Virginia Beach. This rate has increased
substantially since Virginia Beach joined VRS in 1963, when the total rate was 10%. In
addition, this rate is expected to increase further to compensate for market losses incurred by
VRS.
Currently, an employee becomes vested in their VRS defined benefit account after five
years of service. When a vested employee leaves City of Virginia Beach employment prior to
retirement, the employee has two options: (1) maintain the VRS account to be accessed at
retirement based on VRS formulas; or (2) seek a refund of the 5% employee contributions;
In a defined contribution plan:
~ individual employee accounts would be maintained, and in creating the plan a cap on the
contributions either by individual employees or by aggregate cost can be imposed, thereby
eliminating uncertainty about the City of Virginia Beach's future benefits obligation and
reducing the uncertainty associated with the fluctuation in employer contributions under the
current VRS defined benefit plan;
• the benefit would be based upon the contributions, plus or minus any gains or losses in each
employee's individual account. Accordingly, the amount of the City's employer
contribution would not change due to losses or gains in the employee accounts;
• a defined contribution plan could provide employees with substantially more control over
their investment options;
• employees can be immediately vested in the assets contained in their individual accounts;
the assets have greater portability and allow increased options for employees who may leave
City employment prior to retirement, including the potential capability of rolling over funds
18
~
into a 401(k), 401(a), government 457, or IRA.
Request:
The City of Virginia Beach urges the General Assembly to amend the Code of Virginia to enable
localities to have a choice between providing new employees with the current defined benefit
retirement plan or a new defined contribution retirement plan to be administered by VRS; and
that the new defined contribution retirement plan should be fully portable. Other localities have
begun offering this to their employees, and Virginia localities should be able to offer similar
benefits. If the General Assembly is unwilling to grant all localities this authority, then the City
of Virginia Beach requests that it be given the authority to develop its own defined contribution
plan as a model for the state.
19
17. CONVERSION OF THE VIRGINIA BEACH CLERK OF CIRCUIT COURT' S OFFICE TO A CITY
AGENCY
Councilmember Glenn Davis
Background Infoi°mation:
The State Code establishes an Office of the Clerk of the Circuit Court in each Virginia city and
county. The Clerk is charged with the custody, safekeeping and proper indexing of legal
documents deposited in her office. For those matters before the City's only court of record, the
Clerk's Office is responsible for the filing of all civil suits, docketing and filing of criminal
actions, filing divorce suits, and filing adoption petitions. The Second Judicial Circuit, which
consists of Virginia Beach, has the second largest caseload in the State.
Most offices, including Virginia Beach's, are state agencies. All of the fees collected by the
Clerk's Office are paid into the State's General Fund. If the fees collected exceed the State's
portion of salaries and other expenses associated with the Office, the State Code provides the
excess fees to be partially returned to the locality. In the past, the City (by statute) kept two-
thirds of these excess fees. However, due to a legislative change, the City's current portion of
excess fees is one-third, with the State getting the other two-thirds.
For FY 2009-10, the total budget for the Clerk's Office is almost $2.8 million. The State
Compensation Board reimburses the City for a portion of that cost. The amounts reimbursed by
the Board include the employee salaries of approved positions and some of the fringe benefits of
the state-funded positions. The unreimbursed amounts paid by the City include five positions that
are not funded by the Board, the City's portion of fringe benefits, the cost of vacation,
coinpensatory and sick leave, and supplies and equipment.
Due to recent state budget cuts, the Compensation Board has reduced its reimbursement by
$259,122, which left the Clerk of Circuit Court with no choice but to lay off eleven employees,
or approximately 20% of her staff. The Clerk has had to reduce the hours of operation of her
office. Despite the best efforts to meet the needs of the public, these reductions will ultimately
have a cost in the form of customer services and timely legal process. Also, this reduction in
funding came despite the fact that Virginia Beach's Clerk's Office, unlike most clerk's offices
statewide, generates more in fines and fees than it expends on salaries and other expenses.
For more than a decade, state law has provided that the offices of the clerks of circuit court in
Newport News and in Richmond shall be city agencies, not state entities. This conversion has
allowed those cities to better staff their clerks' offices, and, thus better meet the needs of the
residents they serve.
Request:
The City requests that the General Assembly amend Virginia Code § 17.1-288 to add the City of
Virginia Beach to the list of localities where circuit court clerk's offices are city agencies.
20
1. CONTINUED FUNDING FOR BRAC EFFORT
James K. Spore
City Manager
Background Information:
Since January, 2007, the City of Virginia Beach and the Commonwealth of Virginia have
been partnering to address the concerns that were raised by the Base Realignment and
Closure (BRAC) Commission in 2005. This partnership has involved the cost sharing of $15
million annually to purchase properties in the APZ-1 and Clear Zone areas around Naval Air
Station (NAS) Oceana and in the Interfacility Traffic Area (ITA) between Oceana and the
Naval Auxiliary Landing Field Fentress. The City has established a policy of spending $7.5
million per year in perpetuity to comply with the BRAC Order, with the expectation that the
Commonwealth will provide matching funds for expenses associated with the acquisition of
land in the APZ-1 and Clear Zone areas around Oceana and in the ITA. For FY 2010-11, the
City has received a grant for $7.5 million from the Virginia National Defense Industrial
Authority through its Military Strategic Response Fund (MSRF) appropriations; however,
no funding has been made available through the MSRF for FY 2011-12.
The City plans to continue its policy of spending $7.5 million each year and requests that
the General Assembly provide a matching amount for FY 2011-12.
Request:
Request that the General Assembly provide funds through the Military Strategic Response
Fund in FY 2011-12 to the City of Virginia Beach to meet the requirements of the BRAC
Compliance Plan. Providing these funds will reinforce our message to the U.S. Navy that the
Commonwealth and City of Virginia Beach are still dedicated to preserving Naval Air
Station Oceana.
21
APPENDIX: DRAFTS OF PROPOSED LEGISLATION - KEYED TO
REQUESTED CODE CHANGES
LEGISLATIVE ITEM 1
RECKLESS OPERATION OF PADDLEBOARDS
ChiefJamesA. Cervera
Department of Police
§ 29.1-738. Operating boat or manipulating water skis, etc., in reckless manner or while
intoxicated, etc.
A. No person shall operate any motorboat or vessel, or manipulate any skis, surfboard, or similar
device, or engage in any spearfishing while skin diving or scuba diving in a reckless manner so
as to endanger the life, limb, or property of any person. ``Similar device" s1~a11 include but ~ZOt
l~e Iimited to, stand-u~~ paddleboards, prone p~ddleboards and other self=propzlled watercraft.
B. No person shall operate any watercraft, as defined in § 29.1-712, or motorboat which is
underway (i) while such person has a blood alcohol concentration at or greater than the blood
alcohol concentration at which it is unlawful to drive or operate a motor vehicle as provided in §
18.2-266 as indicated by a chemical test administered in accordance with § 29.1-738.2, (ii) while
such person is under the influence of alcohol, (iii) while such person is under the influence of
any narcotic drug or any other self-administered intoxicant or drug of whatsoever nature, or any
combination of such drugs, to a degree which impairs his ability to operate the watercraft or
motorboat safely, (iv) while such person is under the combined influence of alcohol and any drug
or drugs to a degree which impairs his ability to operate the watercraft or motorboat safely, or (v)
while such person has a blood concentration of any of the following substances at a level that is
equai to or greater than: (a) 0.02 milligrams of cocaine per liter of blood, (b) 0.1 milligrams of
methamphetamine per liter of blood, (c) 0.01 milligrams of phencyclidine per liter of blood, or
(d) 0.1 milligrams of 3,4-methylenedioxymethamphetamine per liter of blood.
C. For purposes of this article, the word "operate" shall include being in actual physical control
of a watercraft or motorboat and "underway" shall mean that a vessel is not at anchor, or made
fast to the shore, or aground.
Any person who violates any provision of this section shall be guilty of a Class 1 misdemeanor.
23
LEGISLATIVE ITEM 2
PROCEDURES FOR NOTIFYING ACCUSED OF CERTIFICATE OF ANALYSIS;
WAIVER; CONTINUANCES
ChiefJamesA. Cervera
Department of Police
§ 19.2-187.1. Procedures for notifying accused of certificate of analysis; waiver;
continuances.
A. In any trial and in any hearing other than a preliminary hearing, in which the
attorney for the Commonwealth intends to offer a certificate of analysis into evidence in
lieu of testimony pursuant to § 19.2-187, the attorney for the Commonwealth shall:
1. Provide by mail, delivery, or otherwise, a copy of the certificate to counsel of record
for the accused, or to the accused if he is proceeding pro se, at no charge, no later than 28
days prior to the hearing or trial;
2. Provide simultaneously with the copy of the certificate so provided under
subdivision 1 a notice to the accused of his right to object to having the certificate admitted
without the person who performed the analysis or examination being present and
testifying;
2a. When the attorney for the Commonwealth intends to present such testimony
through two-way video conferencing, attach to the copy of the certificate provided under
subdivision 1 a notice on a page separate from the notice in subdivision 2 specifying that
the person who performed the analysis or examination may testify by two-way video
conferencing and that the accused has a right to object to such two-way video testimony;
and
3. File a copy of the certificate and notice with the clerk of the court hearing the matter
n~ +-oZ-,-t~~-~- within seven ~7,LaYS of the da~.the accused was provided a cnpv of the certi~cate
ar2d notice. ra n.. •~„a ,-~ ~''~ ~`'ru,~°~?.
24
LEGISLATIVE ITEM 3
RIDING ON MOTORCYCLES, GENERALLY
ChiefJamesA. Cervera
Department of Police
§ 46.2-100 Riding on motorcycles, generally.
Every person operating a motorcycle, as defined in § 46.2-100 excluding three-wheeled
vehicles, shall ride only upon the permanent seat attached to the motorcycle, and such
operator shall not carry any other person. No other person shall ride on a motorcycle
unless the motorcycle is designed to carry more than one person, in which event a
passenger may ride on the permanent seat if designed for two persons, or on another seat
firmly attached to the rear or side of the seat for the operator. If the motorcycle is designed
to carry more than one person, it shall also be equipped with a footrest for the use of such
passenger. No persan under the a~e af 9 sl~all ride on a motorcvcle.
25
LEGISLATIVE ITEM 4
POSSESSING FIREARM WHILE UNDER THE INFLUENCE OF ALCOHOL OR
ILLEGAL DRUGS
Chief James A. Cervera
Department of Police
§ 18.2-308 Any person possessing a firearm ' , who
is under the influence of alcohol or illegal drugs while possessing ~g such ~~
firearm in a public place, to inciude the interior spaces of a motor vehicle, shall be guilty of
a Class 1 misdemeanor. ' ~
}~a-~!. ~. Conviction of any of the following offenses shall be prima facie evidence,
subject to rebuttal, that the person is under the influence" for purposes of this section:
manslaughter in violation of § 18.2-36.1, maiming in violation of § 18.2-51.4, driving while
intoxicated in violation of § 18.2-266, public intoxication in violation of § 18.2-388, drivin
after ille~allxconsumin~ alcohol in vialation of ~ 18.2-266.1, or driving while intoxicated in
violation of § 46.2-341.24. Upon such conviction that court shall revoke the person's permit
for a concealed handgun and promptly notify the issuing circuit court if apnlicable. A
person convicted of a violation of this subsection shall be ineligible to apply for a concealed
handgun permit, or~ossess a firearm for a period of five years from the date of conviction.
26
LEGISLATIVE ITEM 5
CRIMINAL HISTORY RECORD INFORMATIOIV CHECK FORTRANSFER OF
CERTAIN FIREARMS
Councilmember Bill DeSteph
§§ 18.2-308.2:2(B)(1) and 18.2-308.2:2(C)
Delete the three occurrences of the phrase "from his inventory."
No dealer shall sell, rent or transfer ~r^m ',;° ;~~r°~~}^rt~ any firearm unless the dealer has
conducted a criminal historv record information check.
27
LEGISLATIVE ITEM 6
ISSUING CIVIL SUMMONS VIA CONTRACTOR WORKING ON BEHALF OF A
MUNICIPALITY
Tom Leahy
Department of Public Utilities
§ 15.2-2122 Localities authorized to establish, etc., sewage disposal system; incidental
powers.
For the purpose of providing relief from pollution, and for the improvement of conditions
affecting the public health, and in addition to other powers conferred by law, any locality
shall have power and authority to:
1. Establish, construct, improve, enlarge, operate and maintain a sewage disposal system
with all the necessary sewers, conduits, pipelines, pumping and ventilating stations,
treatment plants and works, and other plants, structures, boats, conveyances and other real
and personal property necessary for the operation of such system, subject to the approvals
required by § 62.1-44.19.
2. Acquire as permitted by § 15.2-1800. real estate, or rights or easements therein,
necessary or convenient for the establishment, enlargement, maintenance or operation of
such sewage disposal system and the property, in whole or in part, of any private or public
service corporation operating a sewage disposal system or chartered for the purpose of
acquiring or operating such a system, including its lands, plants, works, buildings,
machinery, pipes, mains and all appurtenances thereto and its contracts, easements, rights
and franchises, including its franchise to be a corporation, and have the right to dispose of
property so acquired no longer necessary for the use of such system. However, any locality
condemning property hereunder shall rest under obligation to furnish sewage service, at
appropriate rates, to the customers of any corporation whose property is condemned.
3. Borrow money for the purpose of establishing, constructing, improving and enlarging
the sewage disposal system and to issue bonds therefor in the name of the locality.
4. Accept gifts or grants of real or personal property, money, material, labor or supplies for
the establishment and operation of such sewage disposal system and make and perform
such agreements or contracts as may be necessary or convenient in connection with the
procuring or acceptance of such gifts or grants.
28
5. Enter on any lands, waters and premises for the purpose of making surveys, borings,
soundings and examinations for constructing and operating the sewage disposal system,
and for the prevention of pollution.
6. Enter into contracts with the United States of America, or any department or agency
thereof, or any person, firm or corporation, or the governing body of any other locality,
providing for or relating to the treatment and disposal of sewage and industrial wastes.
7. Fix, charge and collect fees or other charges for the use and services of the sewage
disposal system; and, except in counties which are not otherwise authorized, require the
connection of premises with facilities provided for sewage disposal services. Water and
sewer connection fees established by any locality shall be fair and reasonable. Such fees
shall be reviewed by the locality periodically and shall be adjusted, if necessary, to assure
that they continue to be fair and reasonable. Nothing herein shall affect existing contracts
with bondholders which are in conflict with any of the foregoing provisions.
8. Finance in whole or in part the cost of establishing, constructing, improving or enlarging
the sewage disposal systems authorized to be established, constructed, improved or
enlarged by this section, in advance of putting such systems in operation.
9. Fix, charge and collect fees and other charges for the use and services of sanitary,
combined and storm water sewers operated and maintained by any locality. Such fees and
charges may be fixed and collected in accordance with and subject to the provisions of §
15.2-2119.
10. Establish standards for the use and services of sanitary, combined and stormwater
sewer systems, treatment works and appurtenances operated and maintained by any
locality, including but not limited to implementation of applicable pretreatment
requirements pursuant to the State Water Control Law (§ 62.1-44.2 et seq.) and the federal
Clean Water Act (33 U.S.C. § 1251 et seq.). Such sewer use standards may be irnplemented
by ordinance, regulation, permit or contract of the locality or of the wastewater authority
or sanitation district, where applicable, and violations thereof may be enforced by the same
subject to the following conditions and limitations:
a. No order assessing a civil penalty for a violation shall be issued until after the
user has been provided an opportunity for a hearing, except with the consent of the user.
The notice of the hearing shall be served personally or by registered or certified mail,
return receipt requested, on any authorized representative of the user at least 30 days
prior to the hearing. The notice shall specify the time and place for the hearing, facts and
legal requirements related to the alleged violation, and the amount of any proposed
29
penalty. At the hearing the user may present evidence including witnesses regarding the
occurrence of the alleged violation and the amount of the penalty, and the user may
examine any witnesses for the locality. A verbatim record of the hearing shall be made.
Within 30 days after the conclusion of the hearing, the locality shall make findings of fact
and conclusions of law and issue the order.
b. No order issued by the locality shall assess civil penalties in excess of the
maximum amounts established in subdivision (8a) of § 62.1-44.15, except with the consent
of the user. The actual amount of any penalty assessed shall be based upon the severity of
the violations, the extent of any potential or actual environmental harm or facility damage,
the compliance history of the user, any economic benefit realized from the noncompliance,
and the ability of the user to pay the penalty, provided, however, that in accordance with
subdivision 10 d, a locality may establish a uniform schedule of civil penalties for specified
types of violations. In addition to civil penalties, the order may include a monetary
assessment for actual damages to sewers, treatment works and appurtenances and for
costs, attorney fees and other expenses resulting from the violation. Civil penalties in
excess of the maximum amounts established in subdivision (8a) of § 62.1-44.15 may be
imposed only by a court in amounts determined in its discretion but not to exceed the
maximum amounts established in § 62.1-44.32.
c. Any order issued by the locality, whether or not such order assesses a civil
penalty, shall inform the user of his right to seek reconsideration or review within the
locality, if authorized, and of his right to judicial review of any final order by appeal to
circuit court on the record of proceedings before the locality. To commence an appeal, the
user shall file a petition in circuit court within 30 days of the date of the order, and failure
to do so shall constitute a waiver of the right to appeal. With respect to matters of law, the
burden shall be on the party seeking review to designate and demonstrate an error of law
subject to review by the court. With respect to issues of fact, the duty of the court shall be
limited to ascertaining whether there was substantial evidence in the record to reasonably
support such findings.
d. In addition, a locality may, by ordinance, establish a uniform schedule of civil
penalties for violations of fats, oils, and grease standards; infiltration and inflow standards;
and other specified provisions of any ordinance (other than industrial pretreatment
requirements of the State Water Control Law (§ 62.1-44.2 et seq.) or federal Clean Water
Act (33 U.S.C. § 1251 et seq.). The schedule of civil penalties shall be uniform for each type
of specified violation, and the penalty for any one violation shall be a civil penalty of not
more than $100 for the initial summons, not more than $150 for each additional summons
and not more than a total amount of $3,000 for a series of specified violations arising from
the same operative set of facts. The locality or a t~rivate contractor hired by the localitv ii~
30
accordance with the ~rovisions of subdivision 20 ~, may issue a civil summons ticket for a
scheduled violation. Any person summoned or issued a ticket for a scheduled violation may
make an appearance in person or in writing by mail to the treasurer of the locality prior to
the date fixed for trial in court. Any person so appearing may enter a waiver of trial, admit
liability and pay the civil penalty established for the offense charged. If a person charged
with a scheduled violation does not elect to enter a waiver of trial and admit liability, the
violation shall be tried in the general district court in the same manner and with the same
right of appeal as provided for by law. In any such trial, the locality shall have the burden of
proving by a preponderance of the evidence the liability of the alleged violator. An
admission of liability or finding of liability under this section shall not be deemed an
admission at a criminal proceeding, and no civil action authorized by this section shall
proceed while a criminal action is pending.
e. This subdivision shall neither preclude a locality from proceeding directly in
circuit court to compel compliance with its sewer use standards or seek civil penalties for
violation of the same nor be interpreted as limiting any otherwise applicable legal remedies
or sanctions. Each day during which a violation is found to have existed shall constitute a
separate violation, and any civil penalties imposed under this subdivision shall be applied
to the purpose of abating, preventing or mitigating environmental pollution.
f. For purposes of enforcement of standards established under this subdivision,
"locality" shall mean the locality's director of public utilities or other designee of the
locality with responsibility for administering and enforcing sewer use standards or, in the
case of a wastewater authoriry or sanitation district, its chief executive.
g A locality that has bk ordinance established a uniform schet3ule of civil
penalties ~ursuant to subdivision 10 d mav enter into an agreement with a~rivate
co~ztractar to perform inspections af praperties subiect to such c~rdinance and to issue civil
summons tic}cets far vialatians s~ecified in the u~~iform schedule. Emplotiees af a t~rivate
contractor who.~erform inspections ar issue civil summons ticl~ets pursuant to this
sul~division shall have valid Core and Commercial Plumbing certifications issued bv the
Department of Housing and Commun~ Development No such agreement shall cantain
an~oi-avisions wherebv compensation ~aid ta the contractar is based on the number of
violatians or monetarv penalties impased and no civil summons ticket shall be issued
unless authorized bv the localitv's director af ~ublic utilities or other designee of the
locality with res~onsibility for administering and enforcing sewer use standards.
31
LEGISLATIVE ITEM 9
SALES TAX CAPTURE FOR HOTEL DEVELOPMENT ADJACENT OR CONNECTED
TO THE CONVENTION CENTER
Patti Phillips
Department of Finance
§ 58.1-608.3. Entitlement to certain sales tax revenues.
A. As used in this section, the following words and terms have the following meanings,
unless some other meaning is plainly intended:
"Bonds" means any obligations of a municipality for the payment of money.
"Cost," as applied to any public facility or to extensions or additions to any public facility,
includes: (i) the purchase price of any public facility acquired by the municipality or the
cost of acquiring all of the capital stock of the corporation owning the public facility and the
amount to be paid to discharge any obligations in order to vest title to the public facility or
any part of it in the municipality; (ii) expenses incident to determining the feasibility or
practicability of the public facility; (iii) the cost of plans and specifications, surveys and
estimates of costs and of revenues; (iv) the cost of all land, property, rights, easements and
franchises acquired; (v) the cost of improvements, property or equipment; (vi) the cost of
engineering, legal and other professional services; (vii) the cost of construction or
reconstruction; (viii) the cost of all labor, materials, machinery and equipment; (ix)
financing charges; (x) interest before and during construction and for up to one year after
completion of construction; (xi) start-up costs and operating capital; (xii) payments by a
municipaliry of its share of the cost of any multijurisdictional public faciliry; (xiii)
administrative expense; (xiv) any amounts to be deposited to reserve or replacement
funds; and (xv) other expenses as may be necessary or incident to the financing of the
public facility. Any obligation or expense incurred by the public facility in connection with
any of the foregoing items of cost may be regarded as a part of the cost.
"Municipality" means any counry, city, town, authority, commission, or other public entity.
"Public facility" means (i) any auditorium, coliseum, convention center, sports facility that
is designed for use primarily as a baseball stadium for a minor league professional baseball
affiliated team or structures attached thereto, or conference center, which is owned by a
Virginia county, city, town, authority, or other public entity and where exhibits, meetings,
conferences, conventions, seminars, or similar public events may be conducted; (ii) any
hotel which is owned by a foundation whose sole purpose is to benefit a state-supported
university and which is attached to and is an integral part of such facility, together with any
lands reasonably necessary for the conduct of the operation of such events; or (iii) any
hotel which is adjacent or attached to and is an integral part of such facility,~rovided such
hotel development is either o~Nned in whole or in part b~the municipalitv or is the result of
a~~ublic ~rivate ~artnership between the municipalitv and a private entitv where the
32
munici~alit~contributes cash ar municipal debt for infrastructure, land ar canference
snace. However, such public facility must be located in the City of Hampton, Ciry of
Newport News, City of Norfolk, City of Portsmouth, City of Richmond, City of Roanoke, City
of Salem, City of Staunton, City of Suffolk, or City of Virginia Beach. Any property, real,
personal, or mixed, which is necessary or desirable in connection with any such
auditorium, coliseum, convention center, baseball stadium or conference center, including,
without limitation, facilities for food preparation and serving, parking facilities, and
administration offices, is encompassed within this definition. However, structures
commonly referred to as "shopping centers" or "malls" shall not constitute a public facility
hereunder. A public facility shall not include residential condominiums, townhomes, or
other residential units. In addition, only a new public facility, or a public facility which will
undergo a substantial and significant renovation or expansion, shall be eligible under
subsection B of this section. A new public facility is one whose construction began after
December 31, 1991. A substantial and significant renovation entails a project whose cost is
at least 50 percent of the original cost of the facility being renovated and shall have begun
after December 31, 1991. A substantial and significant expansion entails an increase in
floor space of at least 50 percent over that existing in the preexisting facility and shall have
begun after December 31, 1991; or an increase in floor space of at least 10 percent over
that existing in a public facility that qualified as such under this section and was
constructed after December 31, 1991.
"Sales tax revenues" means such tax collections realized under the Virginia Retail Sales and
Use Tax Act (§ 58.1-600 et seq.) of this title, as limited herein. "Sales tax revenues" does not
include the revenue generated by the one-half percent sales and use tax increase enacted
by the 1986 Special Session of the General Assembly which shall be paid to the
Transportation Trust Fund as defined in § 33.1-23.03:1, nor shall it include the one percent
of the state sales and use tax revenue distributed among the counties and cities of the
Commonwealth pursuant to subsection D of § 58.1-638 on the basis of school age
population. For a public facility that is a sports facility, "sales tax revenues" shall include
such revenues generated by transactions taking place upon the premises of a baseball
stadium or structures attached thereto. For a public facilitv that is a convention center
with a hotel which is either adjacent or attached to and is an integral part of such facilitv,
"sales tax revenues" shall include such revenues generated bv transactions takin~ t~lace
~on the ~remises af the convention center or the hatel provided such hate] is either
whallv owned bX the municiUality ar is the result of a~ublic-private partnership between
the municipality and a~rivate entitv.
B. Any municipality which has issued bonds (i) after Decernber 31, 1991, but before
January 1, 1996, (ii) on or after January 1, 1998, but before July 1, 1999, (iii) on or after
January 1, 1999, but before July 1, 2001, (iv) on or after July 1, 2000, but before July 1,
2003, (v) on or after July 1, 2001, but before July 1, 2005, (vi) on or after July 1, 2004, but
before July 1, 2007, or (vii) on or after July 1, 2009, but before July 1, ~-2015, to pay the
cost, or portion thereof, of any public facility shall be entitled to all sales tax revenues
generated by transactions taking place in such public facility. Such entitlement shall
continue for the lifetime of such bonds, which entitlement shall not exceed 35 years, and all
such sales tax revenues shall be applied to repayment of the bonds. The State Comptroller
33
shall remit such sales tax revenues to the municipality on a quarterly basis, subject to such
reasonable processing delays as may be required by the Department of Taxation to
calculate the actual net sales tax revenues derived from the public facility. The State
Comptroller shall make such remittances to eligible municipalities, as provided herein,
notwithstanding any provisions to the contrary in the Virginia Retail Sales and Use Tax Act
(§ 58.1-600 et seq.). No such remittances shall be made until construction is completed
and, in the case of a renovation or expansion, until the governing body of the municipality
has certified that the renovation or expansion is completed.
C. Nothing in this section shall be construed as authorizing the pledging of the faith and
credit of the Commonwealth of Virginia, or any of its revenues, for the payment of any
bonds. Any appropriation made pursuant to this section shall be made only from sales tax
revenues derived from the public facility for which bonds may have been issued to pay the
cost, in whole or in part, of such public facility.
34
LEGISLATIVE ITEM 15
PASSING BICYCLES
Council Member Bill DeSteph
§46.2-839. Passing bicycle, electric personal assistive mobility device, electric power
assisted bicycle, moped, animal, or animal-drawn vehicle.
Any driver of any vehicle overtaking a bicycle, electric personal assistive mobility
device,electric power-assisted bicycle, moped, animal, or animal-drawn vehicle proceeding in
the same direction shall pass at a reasonable speed at least ~e th~-ec feet to the left of the
overtaken bicycle, electric personal assistive mobility device, electric power-assisted bicycle,
moped, animal, or animal-drawn vehicle and shall not agairi proceed to the right side of the
highway until safely clear of such overtaken bicycle, electric personal assistive mobility device,
electric power-assisted bicycle, moped, animal, or animal-drawn vehicle.
35
-20-
Item V-J.4.
ORDINANCES/RESOL UTIONS ITEM # 60345
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY
CONSENT.•
Ordinance to AUTHORIZE the City Manger to execute the necessary
documents to accept rehabilitated property from WMJordan Company,
Inc. for use as housing for the Disabled at 1457 Ewell Road
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
October 12, 2010
1 AN ORDINANCE TO AUTHORIZE THE
2 ACCEPTANCE OF THE DEDICATION OF A 0.57
3 ACRE +/- PARCEL OF REAL PROPERTY LOCATED
q AT 1457 EWELL RD., OWNED BY WM JORDAN
5 COMPANY, INC., FOR USE AS A SINGLE-FAMILY
6 DWELLING HOUSING DISABLED INDIVIDUALS
7
8 WHEREAS, The Commonwealth of Virginia has entered into an agreement with
9 WM Jordan Company, Inc. ("WM Jordan") for the acquisition and construction or
lo rehabilitation of homes in the Commonwealth to be used as dwellings for disabled
11 individuals (the "Dwellings");
12
13 WHEREAS, the Dwellings are needed as a result of the Commonwealth's
14 decision to reduce the size of the Southeastern Virginia Training Center from 200 beds
15 to 75 beds;
16
17 WHEREAS, the Commonwealth and the City of Virginia Beach (the "City") have
18 identified the 0.57 acre (+/-) parcel of real property located at 1457 Ewell Road in the
19 City of Virginia Beach (the "Property") as a suitable location for one of the Dwellings;
20
21 WHEREAS, Using funds received from the Commonwealth, WM Jordan has
22 purchased the Property and will rehabilitate the existing home on the Property to make
2 3 it suitable for use by the City as one of the Dwellings;
24
25 WHEREAS, after the completion of the rehabilitation of the home on the
2 6 Property, Jordan proposes to dedicate the Property to the City for use as one of the
2 7 Dwellings; and
28
2 9 WHEREAS, acceptance of the dedication of the Property would enable the City
30 to better serve its disabled residents within the City.
31
32 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
33 VIRGINIA BEACH, VIRGINIA:
34
35 1. That the City Council accepts the dedication of the 0.57 acre (+/-) parcel of
3 6 real property located at 1457 Ewell Road (the "Property") from WM Jordan Company,
3~ Inc., so long as the Property is in a condition deemed acceptable by the City Manager
38 for use as a single-family dwelling for use by disabled individuals.
39
4 0 2. That the City Manager or his designee is further authorized to execute any
41 and all documents necessary or appropriate in connection with the acceptance of the
42 dedication of the Property, so long as such documents are deemed necessary and
4 3 sufficient by the City Manager and in a form deemed satisfactory by the City Attorney.
'~I ~
4 4 Adopted by the Council of the City of Virginia Beach, Virginia, on the 1 2th day
4 5 of october , 2010.
APPROVED AS TO LEGAL
SUFFICIENCY AND FORM
City Attorney
APPROVED AS TO CONTENT
, ~ ~/ ii'/G~~
~..: : i / ,~i~ ~; ~
Department of Human S ices
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f9$'~s ~'~~~~ k ~ :C
OF 8yR ~N~A;1Q~-..~ . .~ ~~ ~. ~.
A HaiU~E l~T '~Q:57 E'~id~LL R(3ACt TC3 ~3~ JS~D ~S ~0. tsRt~tl~' FC~ME.
~City Qfi ~Iirgin~a Beacf~ partici~rafiian in fhe sta#e initiatEVe fo downsize
Sc~utheastern tlirginia Training Cen~er}
BacKG~a~n~Q
~r. Sys~em Service F€istory
Unfi1 the 19~4s, mo~f citizens of Virginia wi~~ inteilec#ua1 disabili~ies (ID} were
se~red in large state insfrtutic~ns Ic~ca€ted in Petersburg and Lync~burg. l~ the Ea~e
1960s, IegisIation was passed esta~lishing Corrirnunity`Setviees Boarcis (GSB)
and the Virginia Beach CS~ was estabiished by City Co€~t~cil ie~ '~970. ~ttring
tha# time frame, th~ Tidewater Association of Retar~ed Chiids-en was the primary
regio~ail(c~ea! provider af eacfy int~nrention, educafional, at~ct adult services: In
19~4, a regiona( facility was cons#ructed ~y the Sta#~ in Chesap~ake #t~ ser~e
200 in~ividuals and its ~nifiiai functian was to prepare reside~its ~a return ~o t~eir
home communities. I~i conju~~ctian v~tith tF~e openirig af Southeasterti Viiginia
Training Cent~r (SEV~°C}, comr~unity •s~rvices wers irtifiated by the Virginia
Beach-~SB focusing on service for infants, fiflddiers, and young aduEts #inishing
their s:pec~al education services in the Rub~€c schoo! syster~ that was naw
manaat~d t~r p~ovide speciai educattan to a~1 efigible chfidren. During the
fio~lowinc~ ciecad~, in~ivGduals able ta pa~ticipats in comm€~nity'fi#e were
clischarged to their respecfiv~ cornmunifiies. The papulation at ~EV7'C has
graduafly changed and by fi3~e beginning af the new century, rrrany residents at
SE\lTG were ~i~h~r tao medicaEly fragile to E~e p(aced in t~re community or had
k~ehaviars that made ~l~em a r'rsk fo therr~seiv~s or ot~e~s in t€~e car~muni~iy
s~~fings. On a~ationai'ievel, states vue~e closing rnost ofi t~~ir larg~~ ~~cilifies
and utiiizing €un~iing fo provide cr~mm~nity services ~o even the ~ast challengi€~g
individuals in their service s~stem. Virginia tracfi~io~alEy l~as rank~d 47 ir~ per
capita funding for cornmuni~y iD services and as a resu4t, camm~ni#y service
initia#ives v~rere more c#sfficult to imp4em~nt, and fhe rnore difficult ta s~r~e
individuals remained in state faciiities. Despite thes~ irrmpee[iments ~o commur~ity
ser~ic~, the 4/irginia Beach GSB succ~ss#~Ily reintegrated rnany of its institufranal
1'f:5Ef~pn#s and d~veiaped new innovative resaurc~s ~or its medicall~ fragile
ci~izens. ~y 2010, fhe~e was an~y one tlirginia Beach residen~ a~ Central V~rginia
9; 24f2~y ~
T~ainir~g Center in Lynchburg, 18 residents at Sou€~side Vir~inia Training ~enter
in €~~tersburg, and 25 Virginia Beaci~ resie~ents in SEVTC in Chesapeake. The
~eveiopmer~tal Services (DS) Divisian o~ the De~a~tmenfi of Human Services
(DMSj now s~rves more than 120a individuafs a~nually, most of them f~aving
beer: educated in the Virgin~a Public Schoo! systerr~s ar~d raised a# hame wi#~
~heir fiam'-[ies ir~ ilirginia Beac~:
~. Projec~ ~verview
In 20~9 Gc~vernor Kaine reco~mended fihat SEVTC in ~hesape~ake be e#ased.
This c~co- mmendatiQn :was consast~n# with the national frencE to provide ~en+~c~s
fior 4ridividua4s wtti~ !D in their home cor~m~ni~i~s. i he Virginia Genecaf
Asse~~ly, in response #o pressure fr~rn parer~ts o~ SEVTC resi~ents, autharizsd
t~e' do~rtsizing of SEIITC artd rebuilding it for the 7~ residents with th~ greafies~
neee3 of inst[tutional care: The remair~ing residents would be tarc~e~ed for
cornm~nit}r placement. Cons~rucfion of both the SEVTG rebuifding ant~
com:rn~nit~+ t~omes v~-Q~tld be fun~ed wit~ State revenue bt~n~s„ ~24 miflion
targe~ed €or SEVTC and $S:3 milfio~ targe~ed for corr~mun~ty pragrams: Twerify-
fve af f.he res~derits at SE't/TC were r~fer~ed ta th~ #aciiity by Virginia Beach
DHS< and the expectatian is for fhese indivi~uafs #o return to their hame
cammunity: Accorc4ir~g 'to #he State reuenue bond reguiations the owner of fhe
cr~mmunity reside~ce hames must iae a public entity, and under a Public-Private
~ducation ~~cilifiies ar~d 1n#rastructure Xct agreer-ner~t with th~ Cornmonv,real~h of
Vir.ginia, WM Jorda~,lruas ~warded a co~tract for both'tt~e SEVTG rebuilding a€~d
the devefaprx~ent of fihe community resid~nces. TF~e comm~nity cornpc~nen~
includes the purehase of or co~stcuctian of six IVleclicaici waiver group homes in
tl~e reg~on. ~"hese hom~s wouid be given to partici~atir~g ~SBs and woutd be
used as Medic~id ~sraiver ~raup hames ~ar individtsaEs ret~rrting fio #heir ~orne
coi~rnunities fram S~VTC and cammunity group i~om~s. Qne of'the communify
groa~ ht~m~s was targ°teu f~r cleve;opmen} ir ~liry~r~ia Bea~h at.'~457 ~wet~
Road. T#~is pr~pe~ty has b~en purchased by U1liV1 Jorc3art and: is pres~ntly beir~g
rerta~a~ed infio a fve bedroom home under the c~t~ecfiion o# th~ S~ate Departrnent
of Generai S~ervices (~GS}.
G. Graup Home Financing tUiod~f
'{ . B~cl~c~round.
A fiu~ year cnst proj~efiar~ for fihe Ev,rell R~ad gro~p home #~as be~n
~repared basea on #he lang-stanciing experi~nce of the DS Di~iision of
DHS in operating fot~r and five bedroom group homes. Th~ di~ision
c~rre~tiy opera~es fve g~o~p homss with a totaF of 2~ be~s. The fixst year
of fhe fii~e year cnst ~rojectian ~s based on occupan~y af the Ewell F~aad
ho~e on Febru~r~r 1, 2011, T~~ admissian prae~ss forthe fiwe reside~ts
woufd be staggered ~ver tf~e cours~ ofi the month af Feb~-uary. The five
9124X2D'10
y~ar prajection includes fr~e rnonths of ~peration irt ~Y1'#, ancf a full 12
rnonths af flperation for FY12 fihrough FY'~5.
~lnlike the intermediate care facilities which are self-supporting based on
retrospecti~e reimUursemen#s, waiuer group homes aperaf~~ ~y tha DS
Divis'ro~ ret~uire a subsidy of state, lacaf and other fttr~ds in addi~ia~ to
self-pay elient fees an~ (V(edicaid waivet reirrtbursemenfs to cover fi~tal
anr~~raP persann~l ar~d operating cosfs. The required s~bsidy fo fu1#y fund
Evtirell Road will make it necessary to cfose one of the f~ur bed grou{~
hames. T4~e hame that has b~en selected fic~ be cfosed is R~asar group
home. T~e fvur resicfertts living at Reasar ws11 Ese pfaced in ot~er group
harnes that are o~-e€-ated by licensed private provieters~
2. Financinq
The primary r'unding saurce for group homes operatsd E~y #~e DS ~ivision
is Medicaid wai~er f~es from the ~epar~mer~t of Me~ical Assistar~ce
Senc~ces (DNtAS). ~iome a~td Community Services -1 ~15~c} Waivers are
op#ional programs t~a~ afford states the fiexib~ii#y ta deve~op and
implement alter~atives to institutian~lizatian for fiarget popuiafions (aged,
clisabied, and intell~ctuaf disabii~#ies). Waiv~rs are a~artnt~rs~ip befi~ve~n
a family support sys#em and Medicaid service ~rt~viders tc~ safefy suppart
an ir~c1'rviduat iiving in fhe cornmunity who migh~ oth~rwise resid~ in an
i~'-stitu~ion.
dne of the Hame and Cammuni~y Vtlaiver services is congregate
resic~entiai support: Cangregate residential ac "grnup home residential
service" is a service providing 24 hour superyrision in a commu~i~y-~ased,
home-fFkA dWellil~c,~. ~'#~ese sBNiC~S ~t'B pCt7i~lideG[ fo# it~d'itititlL~a9S t~o~Cl~Ilg
c~SSiS~"u~~`~, COi:1CiSE.'~€ilf~y.'~ ~€'1G~ ~~:~IC1iCtf„~' i€'~ 2iCii\iifiE.-'S fl~f uai:f~/ tliiiR~ t~.S F~ESItl~l~t~.
in fheir individual service pian. T~e current Medicaid waiv~r
reirribursement rafe far one hour ofi congr~gate serviee is $1~.'!`~. ~iliabie
h~ur~ are (irnit~d tc~ fh~se hours v~rhen ~taff members provide assisfance
fo f(~e resiclents. The-average ac~nual N9edicaid waEVer billing is ov~r
$~6,Q00 p~r resic~ent, dependirtg upor~ the r.esident's individuaf seruice
pian. The FY'(2 ~11t~ciicai~ waiver reim~ucsemen~ projection for fiv~
residents at the ~wei( Road grat~p home is $32~;82Q.
Res[den#s pay a monfhly €e~ o# $590:00 for ~~arn art~ board. This fee is
approv~t~ by f~e 1(irginia Beacfi CSB. The ~'Y'~2 Set#-pay Cirent Fee
projection is $34~5~2. The cc~mbined rerrenue fr~m ~hese so~rces is
$36'~,5~2. The estirnated t~tai cost to operate Ew~ll R~ad in ~Y12 is
~~75,771. Therefore, a tcita! of c~ 14,2~9 is neec~ed ~n stat~, locaf ar~~
other funds to sub~idc~e ~he revenue th~t is obtained ~rc~m Me~icaid
v~aiver reimbursements and s~if-pay client ~ees.
9124l201 ~ 3
Exhibit 1, Evuel~ Rc~ad G~a~p 9~or~e ~ive Y~ar ~o~t Pra~ec~aaai, pa~~ays
a five year projec~ion af expenditures and revenues for Ewe~l Roat! ~f ~he
~ea~c~r c~rQ~a~a home is clc~s~~ c~n J~ne 3~, 2Q1 ~. In tt~is scenario, fui~-fime
and part-tim~ stafi ~vould be transferred fro~n Reasarto Ewe!( Road, and
na new Fufl-~irne Equ~valents (F~Es) wauld be rec~uired ta o~iecat~ Ewe(i
Road. Because there is no ~~€nding available fo subsidize ~he FY~ 1 Seif-
F'ay Ciient ~ees and Medicaid 1l~taiver reimbursements cfur~ng tt~e first
year, the ~Y11 Ewel! Road operafion is projected fio have a def€cif of
$90,743. fJnce Reasor is closed, sfate, faca( and otl~et fur~ds would b.e
transferr~d ta fihe Ewefl FZoa~ bt~d~et. T~es~ funtfs wouic~ help fulay cover
~h~ estirnated aosts af Eweli Road d~rir~g th~ per'rod ~l'12 -~Y1 ~.
3. D~era~ians
~'1!~ 1- T~ie i~5 ~i~ision wauid usy existing group t~oma s#af# to operate
the new Ewefl Road graup horr€e. No new ~TEs wauid be needed t~ s~aff
Ewel1 Raad. A tofial of six fu1l-t~me an~ two part-fii-~r~e ~i~i smpioyees
wouici be transfe~red ta tf~e new home. I#-woufd be necessary to hire eight
A;RV~iV contract manpower-FTEs #a staff R~asor u~til it is closetl an June
30, 20'(1. Th~ €ol~ow~ng is a brief sur~mary of the -assumptians re3~ted ~a
th~ ~stit~af~d Fl''I1 expsnditures and projected rever~~es mcluded ir~ ~e
attact~~d exhibifi for fihe peric~d January thrQUgh ;iu€~e 201'i.
w Eigh~ cp~tract manpc~wer IV6HINfR Assistants wouid be hire~ in ~lanuary
to staff ~he Reasar group ho~ne wheri €u€E-tim~ and par~-~irne C€ty staff
are ~ransferred ~o Evveii Ra~cI
• An atlditionai ~2~,506 wc~ul~ be in~9u~e~ i~ t'~~e c~r~tract manpawer
esfimate to cover staffing ct~ntingencies during ~ebruary t~~ot~~h ,~ttne
26'~ 9
~~3n~ v~n wi~n a v~t~teeicFrair iift v~r~~(d ue purchased
~ A~c~~or'PaoP vehicie wou(d be crs~~ artd paid for unti'3 the van is
de[i~tered
~ One deskto~ comp~fer and one fiap~op wo~ald be purc~ased
~ T#~e insta!l~tir~n of a!I req~.rired t~iecarn~nunication ar~d cabie sys~ems
for two teiephones, ~rvo telsph~one lin~s, cable `f V and 1NAN wo€sld be
cornpi~ted and paid far ~n ~Y11'
~ Un~ portable AR~IO lEft rrvith accessories woUld ~e purchasetl
+ New appliances (stove, retrigerator, mi~rdwave, dishwasher, washer,
and dryer} would be purchase~ ancf-instatied
Project~d rever~ues from Ct~erxt Fees and Medicaid Wa~ver
reimbursemen~s reflect the sta~gered aamission scFiedul~ ~r~ F~~ruary.
Sfate; lacal and other revenues in the FY11 Supportfve L.~v'sng Prograrns
(SLF'}-~fe,m~s bc~dget at~e neec#~d to cor~tinue opecating Reasor gre+up
E~ome u.nti{ th~ end af Jun~. T~is revenue wouid be #ransferre~ to the
9f24f2010 4
funt~ing base for Eweil Ro~d in Ju4y 2~11. The Fl~~ `{ Eweli Ra~d ciefiicit is
proje~tsc~ to be $9~;743.
FY'f 2- F~'15 - T~e fot~ov~ing is a brief sumrnary of the as~umpfiions about
the es~i~rrated costs ancl prajected rev~nuss ~aEs~ on E~thibit 1) forthe ~aur
y~ars fc~Ilowing the start=~ap year m FY11.
s~alaries v~rauld remain flat in FY12, and then increase by 3°lo i~t FY'~ 3,
F~`14 ancl FY'f 5
M Fringe benefts woultt ir-crease proparEiona~ely tluring Fl''~3 - FY~S
r Opera~i~g costs wo~ald incr~ase by 2%o sach y~ar beg~nning in FY'I3
m Ren~al expense wcauld not be ir-cluded in t~e S~:~'-=Homes budg~t for
Ewel{ Road
ffi An annual escrow account payrr~ent wa~ld not be inciud~ ~rs the SLP-
Homes budget fo pay fort~e eventuaf replacernent of the HVAC
syst~m, raof, or Qther major rep~irs that may n~ed to b~ r,t~i6~ af Ewel!
Road iri future years
• S~if-pay ci~ent fees woult~ increase sfightiy irr ~`~'14
~ itilt~dicaEi~ waiver refr~bu~semer~~s woutd remain flat ciuring the enfire
firre year periad
Tl~e<operation t~f the Ew~ll Road group home itt r'1''12 wauld require a
subsidy of more than ~'!'14,00(} to caver f~tal personnel and aperating
costs. The required siabsidy vvaukd i~t~reas~ ~o over ~~ 52;OflU by ~Y15.
CONSlf}EF2AT#OI+lS
It is requesfi~d tf~at the City c~nsider acce~ting the home a~ 1457 Ewell Raad in
T~oroughgaacl _pure#~ased and recto~!ated by tNlVi .~ort~an wi#h f~rntting firom its cantract
w~th DGS to be operated as a five person graup home for Virc~inia Beach residenfs
refurr~ing from SEV'~'C.
The Virg-nia Beach d~iS is the f~ad agency f~r this pcaject. The decision makers at'fihe
it~ca! Eevel a~proving t~~s project are fhte Gi~'s SPREAD Commit~ee, fihe City N{anager
anc~ City C~un~i1. The CSS, in` ~s admi~is~ra#ive ca~acity, has b~en kept informed of
p~oject details s~nce> its incep~~on by iea~ agency s~aff. External stakeholdecs inelude
families af residents targe#ed for ~lac$ment in the h~me and residents of'tF~~
neighborhaod in whic#? the ~torne vvot~ld be iocafied:
There are a number af issues to be cor~sidered by the Ci~y ir~ eva{uafiing this pro~ect,.
i~ciuding:
~. The City's m~ssion to be a cornmunity for a fifiefime for i~s residents.
2. Ths City's responsibifiiy far coopera#ing with the State Department o# Behavioral
Healfih and De~elopmental Services (~BHaS) in c#eveloping s-esc~urces for
97~4/201 Q
1lirginia B~ach cesidents returnirrg ~Q ~heir own cc~rnmun~t~es as a resul~ of the
SEUTG downsizing. These individuals ~ad initial~y been ref~rred ta SEUTC by
fl~e Vicg.inia Beacl~ CSB whar~ locaf.resources v~rere foun~ ~o be ins~Ficse~~ to
prc~v{de thes~ fnci~riduals wi~~ needed su~pa~fis and ser-vices.
3. Tt~e Gity w~u~d re~eive a gift of a 5-aedroam horrie esfir~ated at $38~,OOD
avai~abis fo~ individ'ua~s returning frorn SE~/TC and for future genaratians of
Virginia Beach resie€erits usrith similar needs. Althc~ugh t~e €~ome at 'f457 ~~nreil
Road would iae fuily renovated and in prime conc~ififln €~pon receipt by fhe City,
fihere would be pcQ~erty ma~n~enance cosfis projecfied a# $2,412 per year.
4, Nledicaic# waiuer-€unds are<the furteiing source ~f this program b'ut h~storica[{y
F~ave b~en ir~adequate to support th~ f~ve~ of $~p~a~t rec~uired ~~ high need
ir~di~icl~€als. T~ere would be aperafional cr~sts to run the prc,g=am as c~escribed
abaue {Pa~e 4, n~r~b~r 3).
5: lntegration of the h~me in the Thorou~hgoad neighborhood-
~~.~~~~~r~v~s
~. Add Nev~+ Home but Cios~ ~easor Home: This ~tternative wc~~ld allow 5LP ~o
r~piace cane exist'[ng rental home ~ith a~re fu11y paid for and wouid ir~vol~e a
savings c~f approximateiy $35;000 in rental payments per year. If ~i,rfl~f~ a~so
e~im~nate the need for nev~ FTEs ;since Ci~y positions ~rvQ~{d be trans#erred fia the
Ewe11 Raad horrne. The primary negative aspect of this €n~~e( is the dischar~e c~f
the four can~umers pr~se~fly being serv~d in Reasor ar-d'their pVacement with
private proviciers that do ncit offert~e same (evel of care as a~ity opera#ed
prograrrt:
2: C~~ttract Servi~e to a°riv~te Drcvide~ : T~e adv~n~age of #his r~c~v~l is ~hat the~e
~o~ild not be a cast ta the Gi~y other t~an maint~nance. Th~ negatives are ma~y
incic~ding the diffculty in identifyit~g a hig~ quality q~rovider, the 'rnadequacy of t~e
existing-waiver rate to eo~er al;i prograrn costs an~ the City's r~spons'it~iiity in
insuring t~tat tf~e prav~der is a good neighbar in tha cornmunity. Ty~icaliy,
€nadequate reirrit~ursement gets transla#ed info fewer suppork serviGes ~or
cansume.rs and lower quality care, a phenome~on frequsr~tly absenred in the
private prnvider comr~unity.
3. Nat Ac~et~~in~ the Norri~: ~ic~n-participa~ion in the project vvould brea€c the tru~t
and partnership that has existed with the State for the past 4tl ye~rs ~Setwesn the
Virgin~a B~ach ~SB anc3'the Sta~e DBHDS. Gi~ren fihe (egtstation passe~3 b~ the
Gen~ral Ass~€~bly, ~EVTC ts oniy being built tar 75 individuals, about 35°l0 of i~s
c~rigina~ capacity: There are n~ ntk~er opiio~s for ~ischarge~ SEVTC residen~s
otf~er than comm~tni~y residentiai al~ernatives ar~d ~he reven~e band regulations
require that only pubEic er~tifi~s own fh~e p~-oper#ies purc~ased or renova~ed.
91241201 fl 6
i~~ca~nn~~~,aTEO~s
Gi~en t~e challenges ~eing faced by Virginia Beac€i facal govsrnment #a sus~ain
existing services in the pfesen# fiscal ~r~vironrrtent, Altemative '! is the mos# viab~e
a'ternative ar~d the dH5 recornmenda#ian.
The ~i~'s SL~'-Home program i~as a re~utafion ~or proviciing higi~ q~aa~ity care;
sorneth'tng that is req~aired la~ ~he E~ig~-need inciiV~duafs r.~turning ~o the cor-~rr~u~rity f~osn
an i~istitt~tianal setting. if the Ci~y d~~ides ta make the comrnitment to accept ~h~ F~ome,
i~ shauld be with the intenfi to ofFer the highes# quality service possibie.
Exhibit ('() enc4osed
Prep~r~tl 'By:
w_---- ~~ ~ ~/ ,
/` C~; ~. ~;>~~ •'r~-'-~-~' _L--:--~ ~a=,~ 5j .,,~ y; .:, ~
Jay Lazier, G U~ ~ ~a~~
aivisinn Director, ~evefopmen#al Servi~es
Human Seruices
~' ' : /i ~o~ ~;~~
F~obert i1liorin, Director ~ate
Human 5ervices
Reviewed By: _`-`'`.
~~-~ ..~ ~
.~---~''j~''--`-~`---- l /~,~ ~~
~ -7--.~-
C~ty Attomey Date
~` .', ~ e~ y~ ~j !/~ j~ {~~ ` ^~.~
«~F,~,;e+1~`r',It~~~ ~, L''fv:'~'~ '`^{
5usie Vllaistan, ~eputy `Ci~y f1~~nager
~tjf~ I~ ~~~3
~ ~ ~
Ap~aroved ~iy:
~~~~~'~~ ~ ~;'~ ~`' ° ~r ~ ~ ` : ~:
e a: <. ---~_,.__E ~ -F-~
,
~'ityzNtanager `'`~~`~ D~te
~ ~
'~~
9/24l20'f 0 ~
Ver~in~ Bea~h Depaetment of Hvrnan Setv~ces ~
~ LsevelopmenEa3 Setvices ~ivision `
~ Ewelt t2oad Gcnu #iarne.rive'Yaar Cost Pro ectian
~
Qbject
Code
Ob)eat Code
Descript3arr FYf~7
Esfimated
Casfs F'l."t2
Estimated
Costs FY~3
EsYimatsd
Costs F~S4
Estimated
Casts FY15 I
£sYtrriated j
Gosts ~
fi411;1 j Salaries 0 231;'I18 238.Q52 245,193 252.349 ~
6012'I'f ~ Overtime ~? 3i,491 32.436 33.409 34.4ii
609311 Part-Time 0 3t,473 39,473 3t;473 31,423
. 60'4497 Gontcacted Manpower 131,T8 ~ 25,SD6 2E,271 . 27,Q59 27,87t
, 602101 F3.C.A. G t8:23"s 18;722 ti9;225 19;743
~ 6{32104 F.I.C,A. - ivlediCare 0 4;294 4.378 4,495 4,617
602201 Reliremer,t 0 40,531 49,84~1 43;tU5 44.398
502301 tiea4th & Dentat InsUrance 0 32,40Q 33,372 34,373 's5,464
602302 Life Insurance D 847` 687 68~ 707 ~
6Q3t0'S Professional HeatYh Services ~ 221 fi3~ fi50 663 676
6~3119 Recard Checks - Satary 48 t 16 ; 198 121 723 ~
503167 Landscaping Service 523 1,25& 1,281 1,307 1,333
6032(11 General tvlairttenance &.Repair i,E}65 1,'356 1,179 3,2G3 9,Y17
6034D7 Q[her Purchased 5eroices 2,224 6,738 fi,873 7,Ot0 7,35D
804103 Telecommunicati~ns - intemal 2,736 1,7fi6 1;80 ~ 1,837 1,Bi4
80410~ Telecommunications (WAN) Q~ 9;845 1>682 4.520 1',958
604209 Ciiy Garage'Chsrges 0 1,2fl0 1,22< 1,248 i,273
Sfl4203 Fue1 Charges 1,D73 2,575 2;527 2,679 2;733 {
6DA204 Motar Pao! Charges 2;520 3,033 3,094 3.186 3.249 ~
60a40~ Princ Shop Charaes 335 805 82ti 8.?8 95A
60450': Risk Management Charges 4$0. i,1t14 1;'126 'i,149 i,172
605101 Eiectrica! Services 2,382 5,715 5;830 : 5;947 6,066
BQ54G3 WaferServices 684 'k,&40 1;673 '1,706 5;740
S051C4 . Sewer~ge Services 340 876 932 849 686
6051 CS Gas Services 1 B6 445. 45A 4E3 472
60520'! Fostai Sennces 12 29 30 30 3i
&052~3 7elecamma~icat+ons 1:,3&5 876 894 911 330
6U55C1 . P;o(essional Impmvemerf 50 , 1~0 122 125 127
6Q5502 . Travei - Routine 1d5 34B 355 352 3G9
~05508 Travei - Otfier 0 , 0' 0 0 0
6060Q3 DffiCe Supplies 1,250 S93 ~ T,0'[3 1 fl33 1,854
60fiD04 Mediqt SuppEies ?,GOQ 1,594 1;626 1,688 4,G92
606t 11 Computer Software c~bS;040 1200 0 C d 0
606152 Computer Peripherals 3,a00 0 G 0 D
&0842fl Food & Foad Service 5uppfies 9;000 29,600 22,032 22.473 22,322
6pS422 Household Suppfies & Fumishings 8,500 3,~~ 3,{3Ei~ 3,72~ 3,184
606a27 RecreaUonal Supplies 1 208 fi00 612 624 637
8D8010 . LeaseJReni.ot Bldgs & L¢ttd ~ 0 `p i 0 0 0
607302 Fumiture & Fi~ctures 10,000 0 D 0 4
607305 Molor Vehicles &£quipmeni 45,D00 0 I 0 0 0
fi0783i New Compater Worksiation 2.BOb p 0 0 0
~ Total EstfmaXSd Costs 230,91b 475.77i #88,428 5p~f,452 51d,855
~ Reven~e
Gode
Revenue Acconnt
Descriptian ~Y'31
Projected
Revenue FY12
PrnJecfesi
Revenue PY93
P~ojectecf
Rave~sue FY1+2
;ProjecEed
Ftevenue ~Y'15
PrcJected
Revenue
~~150fi7 Sel =Rsy:~lierit ~ee5 i3;Q1f1 3{.682 3~t,692 E5.86$ 35;868 ~
422056 State General Funds 0 fit,997 63.198 63245 64;49d
~ d22063 Medicaid SPO 0 7,439 7,439 7,43B 7,439
422692 Medi~id Waiver 128,363 328,820 326;820 326,820 326;82D
45000~ City Genaral Funds ~ 0' 0 C~ 0 0
TotalProfecied72evanvas ~ t99,373 430,9A8. 432,345 433,372 434;621.
4
~ s~,~sru~~aerctu {so,7aa} (aa,azs~ ~ss,2~s~ [s8:oeo~ ~o,z~aj
Note; The deficit iha! is shawn for FY11 may he reduced by retocating ihe Reasor group. horrie residents as soan.
as passtbVe rafher ti~en waiEing urtfif A4aylJune 2011. The def~cif that is shawn tor each ot ihe EaursubseGUent
fiscaf yeare in ihis exhibit wili be offsek by City general fiunds tisat wv'! be ieal'socated to EweU Road finm 12eesot.
Exbt6it'f~
-21 -
Item V-J. S.
ORDINANCES/RESOL UTIONS ITEM # 60346
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY
CONSENT.•
Ordinance to TRANSFER $377,518 from the Sheriff's Workforce
Release Faciliry Design and Site Selection to the FY2010-11 Inmate
Services Fund Reserves for Contingencies re inmate benefits
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
October 12, 2010
2
3
4
5
6
7
8
9
10
11
AN ORDINANCE TO TRANSFER FUNDS FROM CIP
# 3-299 WORKFORCE RELEASE FACILITY DESIGN
AND SITE SELECTION TO THE SHERIFF'S OFFICE
INMATE SERVICES SPECIAL REVENUE FUND
RESERVE FOR CONTINGENCIES
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA:
That $377,518 is hereby transferred from CIP # 3-299 Workforce Release Facility
Design and Site Selection to the FY 2010-11 Sheriff's Office Inmate Services Fund
Reserves for Contingencies.
Adopted by the Council of the City of Virginia Beach, Virginia on the ~ 2th day
of October 2010.
,
Approved as to Content: Approved as to Legal Sufficiency:
~,~ ~ - r1
<~ ' ~ ~.f .
Managemen Services , r ey's Office
CA11620
R-2
September 29, 2010
-22-
Item V-J. 6. a. b.
OR.DINANCES/RESOL IITIONS ITEM # 60347
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY
CONSENT:
Ordinances to TRANSFER funds from the Reserve for Contingencies to the FY2010-I1
Operating Budgets:
a. $200, 000 to the City Attorney re employing an Election Specialist to assist in
redrawing the City's seven residence District Boundaries
b. $175, 000 to Housing and Neighborhood Preservation re enhanced Homeless
assistance
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. Zlhrin,
Rosemary Wilson and James L. Wood
Council Members Voting Nay:
None
Council Members Absent.•
None
October 12, 2010
1 AN ORDINANCE TO TRANSFER FUNDS FROM THE
2 RESERVE FOR CONTINGENCIES TO THE FY 2010-11
3 OPERATING BUDGET OF THE CITY ATTORNEY FOR THE
4 PURPOSE OF ENGAGING THE SERVICES OF AN
5 ELECTION SPECIALIST TO ASSIST IN REDRAWING THE
6 BOUNDARY LINES OF THE CITY'S SEVEN RESIDENCE
7 DISTRICTS
8
9 WHEREAS, in the spring of 2011, the Census Bureau will provide the
10 Commonwealth of Virginia the results of the 2010 Census to enable the Commonwealth to
11 redraw the boundaries of existing election districts;
12
13 WHEREAS, shortly thereafter, the City of Virginia Beach must use the results of the
14 2000 Census to redraw the boundaries of its seven residence districts to ensure that they
15 remain approximately equal in population;
16
17 WHEREAS, the assistance of an election specialist is necessary to properly analyze
18 the results of the 2010 Census and redraw the boundaries of the seven residence districts
19 in a manner which will comply with the Voting Rights Act and approved by the U.S.
20 Department of Justice; and
21
22 WHEREAS, the City Attorney has estimated that the total cost for the services of an
23 election specialist will be approximately $200,000.
24
25 NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
26 VIRGINIA BEACH, VIRGINIA:
27
28 That $200,000 is hereby transferred from the Reserve for Contingencies to the FY
29 2010-11 Operating Budget of the City Attorney for the purpose of engaging the services of
30 an election specialist to assist in the redrawing the boundary lines of the City's seven
31 residence districts.
Adopted by the Council of the City of Virginia Beach, Virginia on the ~ 2th day
of october 2010.
Approved as to Content:
,
~,~ ~
~ ~~ ~~ ~
~:.~~~~~
Management Services
Approved as to Legal Sufficiency:
~
ey s Office
CA11621
R-2
September 29, 2010
1
2
3
4
5
6
7
8
9
10
11
12
13
AN ORDINANCE TO TRANSFER FUNDS FROM THE
GENERAL FUND RESERVE FOR CONTINGENCIES
TO THE FY 2010-11 OPERATING BUDGET OF THE
DEPARTMENT OF HOUSING AND NEIGHBORHOOD
PRESERVATION TO ENHANCE EFFORTS FOR THE
HOMELESS
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH,
VIRGINIA:
That $175,000 is hereby transferred from the General Fund Reserve for
Contingencies to the FY 2010-11 Operating Budget of the Housing and Neighborhood
Preservation to enhance efforts for the homeless.
Adopted by the Council of the City of Virginia Beach, Virginia, on the 12th day
of October 12, , 2010.
APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY:
,,~ ~
~-;~ ~ ~ ~
~
Management Services
~--
~ A ey's Office
CA11622
R-2
September 30, 2010
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Item V-J.7.
ORDINANCES/RESOL UTIONS ITEM # 60348
ADDED
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY
CONSENT:
Resolution to ENDORSE participation in Mayor's Action Challenge for
children and families initiative for National League of Cities
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. Zlhrin,
Rosemary Wilson and James L. Wood
Council Members Voting Nay.•
None
Council Members Absent:
None
October 12, 2010
~~~~ ~~~~1 V
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neig(zdor(zoocfs t(zat support eack and every chiCd,•
~E1~~7,5: ~e "~Iayors' Action ChaCCenge for ChiCcfren ancC ~F'amiC'~es" is an initiative of
tFie NationaC League of Cities tFiat ca~Cs upon 9~Layors ancf cities across the country to set 6ofcC,
measura6Ce goaCs to guide CocaCactions tFiat zc~iC~strengtFien their communities' cFiiCdren and famiGes;
`Gl~'~XrE '~ .,~,5: ~ie ChaC~enge spec~es tFiat t(ese goaCs shaCC focus on four key areas:
oppor-tunities for chiCdren to Cearn ancf grow; a safe neigk6orFioocC for tFiem to call (zome; a(zeaCthy
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`GI~J(rE~A,S: `I~ie C~aCCenge provicfes resources to participating cities to heCp t(em deveCop
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~ity's participation in tFie .~layor's Action ChaCCenge for Chifctren ancC FamiCies; ancC, furtFier requests
the City 9Kana~er take a~~steps necessary to assure tFce City's participation in tFce CFcallenge.
Adopted 6y tke CounciCof the City of tiirginia ~eacFi, tiirginia on the 7we~Fi day of
Octo6er 2010.
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CITY OF VIRGINIA BEACH
AGENDA ITEM
ITEM: A Resolution in Support of the City's Participation in the National League of
Cities' Mayors' Action Challenge for Children and Families
MEETING DATE: October 12, 2010
^ Background: Mayor Will Sessoms, Jr. has accepted an invitation from the
National League of Cities to join The Mayor's Action Challenge for Children and
Families. This national initiative calls upon mayors across the U.S. to set bold,
measurable goals to guide local actions that will strengthen the community's chifdren
and families. The Challenge specifies that these goals focus on four key areas:
opportunities to learn and grow; a safe neighborhood to call home; a healthy lifestyle
and environment; and a financially fit family in which to thrive. The premise of this
program is that strong cities are built on a foundation of strong farnilies and empowered
neighborhoods that support every child.
^ Considerations: The City supports efforts for individuals to help them achieve
self-reliance, personal fulfillment and workforce preparedness and advancement. This
program will build upon the progress we have already made in the areas of helping
preschoolers be prepared to be successful in kindergarten, increasing the availability of
cultural, recreational, historical and lifelong learning opportunities, creating an
environment where residents and visitors feel safe in our cities. In addition, the effort
furthers our commitment to measurable, locally defined goals that will ensure the future
vitality of our community. Lastly, this Challenge provides localities with an opportunity
to share best practices, call upon federal and state governments to join us as full
partners, and inviting other mayors to become part of this national call to action.
^ Public Information: Public information will be provided through the normal
Council agenda process.
^ Attachments: Resolution.
Requested by Mayor Sessoms
-24-
Item V-K.
PLANNING
ITEM # 60349
1. S. DAWSONandSUSANP. STERLING
2. VIRGINIA BEACHRAQUET CLUB NORTH
3. NEW CINGULAR WIRELESS PCS, LLC
and CITY OF i~IRGINIA BEACH
4. KROGER LIMITED PARTNERSHIP I
S. OLD DOMINION SOCCCER CL UB (ODSC)
And BROOK BAPTIST CHURCH
NONCONFORMING USE
MODIFICATIONS OF CONDITIONS
CONDITIONAL USE PERMIT
CONDITIONAL USE PERMIT
CONDITIONAL USE PERMIT
October 12, 2010
- 25 -
Item V-K.
PLANNING ITEM # 60350
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED in ONE
MOTION Items 1(DEFERRED INDEFINITEL ~, 2 and 3, 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 K 1. (S. DAWSON and SUSAN P. STERLING for a Nonconforming Use) was DEFERRED
INDEFINITELY on September 28, 2010.
Item K.3. (NEW CINGULAR WIRELESS PCS, LLC and CITY OF VIRGINIA BEACH for a
Conditional Use Permit). William J. Whitney, Planning Director, advised the applicant submitted a
corrected survey showing that none of the area proposed for improvement is located within the 100-
year floodplain. The revised survey is hereby made a part of the record
October 12, 2010
-26-
Item V-K.1.
PLANNING ITEM # 60351
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED
INDEFINITELY, BY CONSENT, application of S. DAWSON and SUSAN P. STERLING for a
Nonconformin ~ Use to allow for an expansion of their existing dwelling at 801 Baltic Avenue.
BEACH-DISTWCT 6 (deferred indefinitely 9/28/10)
Application of S. DAWSON and SUSAN P. STERLING for a
Nonconforming Use to allow for an expansion of their existing dwelling
at 801 Baltic Avenue (GPIN #2427133700)
BEACH - DISTRICT 6
Voting.• 11-0 (By Consent)
Council Members Yoting 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
October 12, 2010
-27-
Item V-L.2.
PLANNING ITEM # 60352
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, ADOPTED an
Ordinance, BY CONSENT, upon Application of VIRGINIA BEACH RAQUET CLUB NORTH
ASSOCIATES for Modi ication of Conditions re proposals for improvements at the indoor and outdoor
tennis courts and restrictions on the temporary inflatable covers at 1950 Thomas Bishop Lane (GPIN #
1499567123;1499568379)
(DISTRICT S - LYNNHAVEN),
BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
Ordinance upon Application of VIRGINIA BEACH RAQUET CLUB
NORTHASSOCIATES for Modification of Conditions re proposals for
improvements at the indoor and outdoor tennis courts and restrictions on
the temporary inflatable covers at 1950 Thomas Bishop Lane (GPIN #
1499567123;1499568379)
(DISTRICT 5 - LYNNHAVEN),
The following conditions shall be required:
The indoor door tennis faciliry shall be constructed only at the location depicted on the exhibit
referenced in Condition 2 below and in substantial conformance with the elevations entitled
"New Court Faciliry for Virginia Beach Tennis and Country Club " prepared by Covington,
Hendrix Anderson Architects, dated 08/13/10, which has been exhibited to the Virginia Beach
Ciry Council and is on file in the Planning Department. The exterior building color scheme shall
be limited to earth tones.
2. Any additional buildings, tennis courts and,/or lighting not on the property located at 1950
Thomas Bishop Lane as of August 1, 2010, shall be constructed substantially in conformance
with the improvements indicated on the exhibit entitled "Use Permit Exhibit - Revised, Virginia
Beach Tennis & Country Club ", prepared by Martin Engineering, dated 08/16/10, which has
been exhibited to the Virginia Beach City Council and is on file in the Planning Department.
3. The additional lights, as depicted on the exhibit referenced in Condition No. 2 above, shall be
turned off by 10: 00 PM.
4. A single temporary structure, or structures, are permitted to be constructed at 1951 Thomas
Bishop Lane in order to replace the existing inflatable, indoor tennis structure solely for
protection from the elements during the Winter 2010-2011 Season. On or before Apri130, 2011,
any temporary structure(s) on this property shall be removed. Subsequent to May 1, 2011, the
Club's property on the West side of Thomas Bishop Lane shall be limited to six (6) outdoor tennis
courts, parking in number and configuration as of August 1, 2010, and change-over player
seating. Lights on these courts shall be prohibited.
October 12, 2010
-28-
Item V-L.2.
PLANNING ITEM # 60352 (Continued)
5. An additional row of large evergreen shrubs, installed consistent with standards set forth in the
Virginia Beach Landscaping Guide, shall be installed on the Club's property along the Southern
property line as shown on the exhibit referenced in Condition No. 2 above. Said landscaping
shall be depicted on the final site plan and approved by staff prior to approval of the Site Plan.
The existing wooded area on the Club's properry in this vicinity shall remain intact as shown on
said Plan and shall also be depicted as part of the tree protection strategy on the Site Plan and/or
on the Erosion and Sedimentation Plan.
6. Interior parking lot and streetscape landscaping shall be installed as required by City
Ordinances and consistent with the standards set forth in the Virginia Beach Landscaping Guide.
7. Consistent with the Zoning Ordinance, no signage, freestanding, on the building or otherwise,
shall be permitted on the site.
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 Twelfth of October, 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
October 12, 2010
-29-
Item V-L.3.
PLANNING ITEM # 60353
Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, ADOPTED an
Ordinance, BY CONSENT, upon Application of NEW CINGULAR WIRELESS PCS, LLC and CITY
OF VIRGINIA BEACH for a Conditional Use Permit re a communications tower at 1900 Sandbridge
Road GPIN # 24144126490000
(DISTRICT 7 - PRINCESS ANNE)
William J. Whimey, Planning Director, advised the applicant submitted a corrected survey showing that
none of the area proposed for improvement is located within the 100 year floodplain floodplain. The
revised survey is hereby made a part of the record.
BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
Ordinance, BY CONSENT, upon Application of NEW CINGULAR
WIRELESS PCS, LLC and CITY OF VIRGINIA BEACH for a
Conditional Use Permit re a communications tower at 1900 Sandbridge
Road GPIN # 24144126490000
(DISTRICT 7 - PRINCESSANNE) R0101037439
The following conditions shall be required:
1. The lease area and access road shall be developed substantially in accordance with the submitted
plan entitled "Red Mill Park Site No. NF307B 1900 Sandbridge Road, Virginia Beach, VA
23456 ", dated OS/14/08, and as revised OS/10/10, and prepared by Allpro Consulting Group, Inc.
Said Plan has been exhibited to the Virginia Beach Ciry Council and is on file in the Planning
Department.
2. The submitted Site Plan states that the proposed chain-link fence will be ten (10) feet in height.
The applicant has stated that this is a typographic error. When the plans are submitted for Site
Plan review, they must depict an eight foot (8 ) high fence.
3. All costs associated with the relocation of the City's equipment, if necessary and feasible on the
Pleasant Ridge Road tower, are the responsibility of the applicant.
4. The applicant shall not~ the City's Radio Systems Engineer forty-eight (48) hours prior to any
work being performed on the Pleasant Ridge Road tower.
S. The proposed tower shall not exceed one hundred forry four feet (144 ) in overall height.
6. The applicant shall work with the Parks and Recreation Department's Landscape staff to insure
that the Landscape Plan meets specifications.
7. In the event interference with any City's emergency communications facilities arises from the
user(s) of this tower, the applicant shall take all measures reasonably necessary to correct and
eliminate the interference. If the interference cannot be eliminated within seven (7) days, the
applicant shall cease operation to the extent necessary to stop the interference.
8. In the event that the tower or antennas on the tower are inactive for a period of one (1) year, the
tower shall be removed at the applicant's expense
October 12, 2010
-30-
Item V-L.3.
PLANNING ITEM # 60354 (Continued)
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 Twelfth of October, 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
Council Members Voting Nay.•
None
October 12, 2010
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PLANNING DEPARTMENT
PHONE (757) 385-8277
FAX(757)385-5789
TDD 711
MEMORANDUM
DATE: October 12, 2010
VBgov.com
MUNICIPAL CErfTER
BUILDING 2, RooM 191
2405 COURTHOUSE OftIVE
VIRGINIA BEACH, VA 2345E9040
TO: James K. Spore, City Manager
FROM: William J. Whitney, Planning Director
SUBJECT: New Cingular Wireless PCS, 1900 andbridge Road, Conditional Use
Permit for a Communications Tower, City Council Agenda on October 13,
2010
I am writing to clarify that since the staff report on the application referenced above was
finalized, New Cingular Wireless submitted a corrected survey showing that none of the
area proposed for improvement is located within the 100-year floodplain. This updated
information may be useful to City Council in their deliberations on this request. A copy of
the revised survey is attached.
~i_ty ot Virgi_n-i_a Z3 e~ch.
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-31-
Item V-L.4.
PLANNING ITEM # 60354
Thomas Ingalls, 740 Victor Road, Phone: (757) 553-7724, has lived on the western side of the store for
ten (10) years. The Planning Commission approved Conditions 9 and 10 to replace the buffer and build
it up as well as install a white vinyl fence with the owner's permission. Mr. Ingalls wished these
improvements be made prior to commencement of construction. This will cut down on the noise.
Attorney R. E. Bourdon, Phone: 499-8971, advised his client would be pleased to install the fence and
add any landscaping.
The applicant has agreed to install a fence all the way along the western boundary line and increase the
landscaping on the outside of the fence.
Upon motion by Councilman Uhrin, seconded by Councilman Dyer, City Council ADOPTED an
Ordinance upon Application of KROGER LIMITED PARTNERSHIP I for a Conditional Use Permit
re automobile service and fuel station at 1800 Republic Road (GPIN # 2407691178)
(DISTRICT 6 - BEACH))
BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA
Ordinance upon Application of KROGER LIMITED PARTNERSHIP I
for a Conditional Use Permit re automobile service and fuel station at
1800 Republic Road (GPIN # 2407691178)
(DISTRICT 6 - BEACH) R0101037440
The following conditions shall be required:
The site shall be developed substantially in accordance with the submitted
"Conditional Use Site Plan ", dated 6/30/10, and prepared by RLR Robertson Loia
Roof Architects and Engineers. Signage depicted on the Site Plan is not approved. A
separate Sign Package shall be submitted to the current Planning O~ce for review
and approval. Said Plan has been exhibited to the Virginia Beach Ciry Council and is
on file in the Planning Department.
2. The proposed canopy, fuel pumps and kiosk shall be constructed in substantial
accordance with the submitted elevation "Kroger Fuel R-533 1800 Republic Road"
dated July 1, 2010. Signage depicted on the elevations is not approved. A separate
Sign Package shall be submitted to the Current Planning O~ce for review and
approval. Said Plan has been exhibited to the Virginia Beach City Council and is on
file in the Planning Department.
3. The applicant shall provide a Photometric Plan that also includes the canopy
lighting for review and approval by City staff. Canopy lighting shall be recessed. All
lighting on the site should be consistent with those standards recommended by the
Illumination Engineering Society.
October 12, 2010
-32-
Item V-L.4.
PLANNING ITEM # 60354 (Continued)
4. Signage for the proposed use shall be limited to that which is allowed by the Ciry
Zoning Ordinance. Striping on the canopy shall be limited to ten feet (10 ) on each
side of the canopy, or one-quarter (1/4) of the length of each side. Signage on the
canopy shall not be externally illuminated. There shall be no other signs, neon signs
or neon accents installed on any wall area of the building, on the windows andlor
doors, on the canopy or the canopy columns or light poles.
S. There shall be no pennants, banners, streamers, strings of lights, portable signs,
electronic display signs or `flag" style signs on the site.
6. There shall be no outdoor vending machines, ice boxes or the display of inerchandise
anywhere within the facility area.
7. The appl icant shall provide a hazard mitigation kit on the site for fuel spills and an
accessible telephone or notification system for emergency contact of the responsible
party for the site.
8. Trim existing landscaping or relocate same further back from the road to insure good
site visibility of cars entering and leaving the Fuel Center.
9. The applicant shall install additional landscape planting to meet the reguired
buffering / screening of the Fuel Center from the adjacent residential properties
where existing landscaping is insufficient.
10. The applicant shall install a white vin l p~ rivacv fence eight feet (8') in hei h~ t on
adiacent residential properties with the propertv owner's consent.
11. Hours of o~eration of the~'uel acilitv shall not be bevond the hours of operation of
the grocery store.
This Ordinance shall be effective in accordance with Section 107 (~ of the Zoning Ordinance.
Adopted by the City Council of the Ciry of Virginia Beach, Virginia, on the Twelfth of October, Two
Thousand Ten
October 12, 2010
-33-
Item V-L.4.
PLANNING ITEM # 60354 (Continued)
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
October 12, 2010
-34-
Item V-L. S.
PLANNING ITEM # 60355
Jim Kling, President - Old Dominion Soccer Club (ODSC), 708 Aspinock, Chesapeake 23320, Phone;
377-5863, advised the Soccer Club wishes to WITHDRAW their application. They will work with the
City to establish a long term solution to the challenges.
Citizens had registered to speak; however, they did not SPEAK, as the Applicant agreed to WITHDRAW.
Upon motion by Vice Mayor Jones, seconded by Council Lady Wilson, City Council ALLOWED
WITHDRAWAL, of the Ordinance upon Application of OLD DOMINION SOCCER CLUB (ODSC)
and BROOK BAPTIST CHIIRCH for a Conditional Use Permit re use of the church's open space for
lighted Soccer fields at 4397 Wishart Road (GPIN #14787652060000)(Deferred 8/11/10)
(DISTRICT 4 - BAYSIDE)
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
October 12, 2010
-35-
Item. L.1.
APPOINTMENTS ITEM # 60356
City Council RESCHEDULED, BY CONSENSUS the following Appointments:
ENERGYADVISORY COMMITTEE
HEALTH SERVICES ADVISORY BOARD
TIDEWATER YOUTH SERVICES COMMISSION
VIRGINIA BEACH TOMORROW COMMISSION
WETLANDS BOARD
October 12, 2010
-36-
Item.L.2.
APPOINTMENTS ITEM # 60357
Upon NOMINATION by Vice Mayor Jones, Ciry Council APPOINTED:
Debbie L. Helfant
2 year term
11/01/2010 -10/31/2012
HISTORICAL REVIEW BOARD
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
October 12, 2010
-37-
Item. L.3.
APPOINTMENTS ITEM # 60358
Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED:
Kenneth D. Jobe
Unexpired term thru 09/30/2011
WETLANDS BOARD
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
October 12, 2010
-38-
Items O.
ADJOURNMENT
ITEM # 60359
Mayor William D. Sessoms DECLARED the City Council MeetingADJOURNED at 6:14 P.M.
~___~___~~~--- -~~--~-----`~~ ~/~
Beverly O. Hooks, CMC
Chief Depury City Clerk
--- ----------- -------~~r.L.lit~
uth Hodges Fraser, MMC
City Clerk
Citv of Virginia Beach, Virginia
- ~~~!~'!- - ---------------
William D. Sessoms, Jr.
Mayor
NO ONE REGISTERED WISHED TO SPEAK UNDER OPEN MIKE
October 12, 2010