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FEBRUARY 25, 2014 MINUTESCITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY COUNCIL MAYOR W/LLIAM D. SESSOMS, JR., A! Large VlCE MAYOR LOUIS R. JONES, Bnvside - District 4 ROBERT M. DYER, Centervi[le - District 1 BARBARA M. HENLEY, Princess Amie - District 7 SHANNON DS KANE, Rose Hal! - District 3 BRAD MARTIN, P.E., At Lmge JOHN D.MOSS, At Large AMELIA ROSS-HAMMOND, Kempsville - Disd•ict 2 JOHN E. UHRlN, BenclF - District 6 ROSEMARY W/LSON, At Lmge JAMES L. WOOD, Lvnnhnven -District 5 CITY COUNCIL APPOINTEES CITY MANAGER - JAMES K. SPORE C/TYATTORNEY- MARKD. ST/LES C/TYASSESSOR - JERALD D. BANAGAN C/TYAUDlTOR-LYNDONS. REM/AS CITY CLERK - RUTH HODGES FRASER, MMC CITY COUNCIL AGENDA 25 February 2014 CITYHALL BUILDING 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VIRGINlA 23456-9005 PHONE: (757) 385-4303 FAX (757) 385-5669 E- MAIG: Crycnd@vbgov.com 1. CITY MANAGER'S BRIEFINGS - Conference Room - 3:30 PM A. REAL ESTATE ASSESSMENTS Jerald Banagan, Real Estate Assessor 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 THE CITY COUNCIL 4:30 PM C. RECESS TO CLOSED SESSION V. FORMAL SESSION - City Council Chamber - 6:00 PM A. CALL TO ORDER - Mayor William D. Sessoms, Jr. B. INVOCATION: Father James E. Parke C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF CLOSED SESSION F. MINUTES 1. INFORMAL and FORMAL SESSIONS February 11, 2014 G. FORMAL SESSION AGENDA l. CONSENT AGENDA H. PRESENTATION 1. KEEP AMERICA BEAUTIFUL 1. BID OPENING 1. LEASE OF CITY-OWNED PROPERTY 2401 Atlantic Avenue J. PUSLIC HEARINGS 1. LEASES OF CITY-OWNED PROPERTY a. 2401 Atlantic Avenue b. Virginia Beach Farmers Market to Sweet Enchantments Bakery, LLC c. Vetshouse at 1508 Ohio Avenue 2. EXCHANGE OF EXCESS CITY-OWNED PROPERTY a. 225 Clearfield Avenue 3. SALE OF EXCESS CITY-OWNED PROPERTY a. 219 N. Oceana Boulevard b. 606 Goldsboro Avenue DEFER TO MARCH 11, 2014 4. PURCHASE AGREEMENT for the ACQUISITION OF ARP DEVELOPMENT RIGHTS a. 3500 Block of Old Carolina Road 5. PROPOSED UTILITY EASEMENT OVER CITY-OWNED PROPERTY a. Dominion Virginia Power at Winston Place K. ORDINANCES/RESOLUTIONS 1. Ordinance and Resolution to AMEND Section 2-20 of the City Code re time and place of regular meetings of City Council 2. Ordinance to AMEND Section 4 of the Agricultural Lands Preservation (ARP) Ordinance re the definition of "Agricultural Use" 3. Ordinance to AUTHORIZE acquisition of an Agricultural Land Preservation (ARP) Easement and the issuance of Contract Obligations of $558,469 re property of Furman G. Wall, Jr. 4. Ordinances to DECLARE property in EXCESS of the City's needs and AUTHORIZE the City Manager to: a. EXECUTE all Disposition and EXCHANGE Documents with Clearfield Real Estate Holdings, LLC at 225 Clearfield Avenue (KEMPSVILLE - DISTRICT 2) b. SELL property at 219 North Oceana Boulevard to William R. and Jill S. Gurley (BEACH - DISTRICT 6) 5. Ordinance to AUTHORIZE dedication of an easement to Virginia Electric and Power Company (VEPCO) at the intersection of Winston Place and East Stratford Road 6. Ordinances to AUTHORIZE the City Manager to EXECUTE: a. a Lease with 23 Atlantic LLC at 2401 Atlantic Avenue b. a Lease with Vetshouse, Incorporated at 1508 Ohio Avenue c. a Lease with Sweet Enchantments Bakery, LLC at the Farmer's Market 7. Ordinance to GRANT a Franchise Agreement re Pedal Cab operation in the Resort Area to Seven Cities Rickshaw, LLC 8. Resolution to AUTHORIZE a Policy on the display of banners on pedestrian bridges in Central Business Core District at Town Center 9. INVESTMENT OF CITY FUNDS: a. Resolution re a REVISED Policy and the Treasurer DIRECTED to use the Policy for the investment of City funds b. Ordinance to AUTHORIZE the VACO/VML Virginia lnvestment Pool Trust Fund to invest certain City funds within the City Treasurer's control 10. LESNER BRIDGE replacement: a. Resolution to REQUEST the Virginia Department of Transportation (VDOT) designate the Lesner Bridge replacement as a Revenue Sharing Program project b. Ordinance to ACCEPT and APPROPRIATE state and federal funding from the Virginia Department of Transportation (VDOT) and TRANSFER those funds within the roadway program 11. Ordinance to AUTHORIZE a temporary encroachment into a portion of City property at "the Boat Basin" in Murray's Creek for SHEILA P. ELDRIDGE re gazebo, bulkhead, landscape buffer and open pile timber pier at 1138 Milissa Court 12. Ordinances to ACCEPT, APPROPRIATE and TRANSFER: a. $523,003 from various buildings rehabilitation and renewal, Phase III, to Economic Development and the Strategic Growth Area office b. $513,050 from the School Site Landscaping Internal Service to Parks and Recreation re landscape projects c. $ 90,000 interest free loan to the Plaza Rescue Squad re a new ambulance d. $ 74,842 from the Virginia Department of Health, Office of Emergency Medical Services (EMS) re purchase of cardiac monitor upgrades, Lucas CPR devices and automatic external defibrillators e. $20,000 from Smart Beginnings South Hampton Roads to Economic Development re Early Learning Challenge Grant Initiative L. PLANNING 1. Application of GRAHAM REAL ESTATE, LL / KCLB, LLC DISTRICT 1 - CENTERVILLE a. Amendment to Green Run PDH Plan to allow development of a mini-warehouse (self- storage) b. Variance to the Subdivision Ordinance, Section 4.4(b), to create a new parcel at 1545 Lynnhaven Parkway RECOMMENDATION APPROVAL 2. Application of CROWN CASTLE USA, INC. for a Relocation of a Nonconforming Structure (communication tower) at Meadow Ridge Lane DISTRICT 7 - PRINCESS ANNE RECOMMENDATION DEFER TO APRIL S, 2014 3. Application of R& J RETAIL INVESTMENTS, INC. for Modification of Conditions re a. service station and car wash (approved December 13, 1988 and Modified August 26, 1991) at 5765 Northampton Boulevard DISTRICT 4 - BAYSIDE RECOMMENDATION APPROVAL 4. Application of ADVENTURE SPORTS PARK, LLC/KAMPGROUNDS OF AMERICA, INC. for Modification of a Conditional Use Permit re ADDING outdoor recreation (Paintball Park) (approved December 8,1969) at 1304 and 1252 Prosperity Road DISTRICT 6 - BEACH RECOMMENDATION APPROVAL 5. Application of MAHESH GOPINATH (applicant) and KELHAM PROPERTIES, LLC (owner) for a Conditional Use Permit re Vocational (dental assisting) Training School at 405 South Parliament Drive DISTRICT 2 - KEMPSVILLE RECOMMENDATION APPROVAL 6. Application of LUCILA A. FIGUEREO for a Conditional Use Permit for a Home Family Child Daycare at 2021 Manassas Run DISTRICT 1 - CENTERVILLE RECOMMENDATION APPROVAL 7. Application of WITCHDUCK COURT, LLC Modification of a Conditional Change of Zoning re Proffer No. 4(fencing) at 527 North Witchduck Road DISTRICT 4 - BAYSIDE RECOMMENDATION APPROVAL 8. Application of HOME ASSOCIATES OF VIRGINIA, INC. for a Conditional Change of Zoning from AG-1 Agricultural to Conditional R-15 Residential at 1864 Indian River Road (Deferred December 10, 2013) DISTRICT 7 - PRINCESS ANNE RECOMMENDATION APPROVAL 9. Application of HIF, LLC; HIC, LLC; MACH ONE, LLC for a Modification of a Conditional Change of Zoning (approved April 11, 1995 and Modified October 11, 2011) re development of a retail building at 3877 Holland Road DISTRICT 3 - ROSE HALL RECOMMENDATION APPROVAL 10. Applications of HOFD ASHVILLE PARK, LLC / ELBOW FARMS ASSOCIATES, DISTRICT 7 - PRINCESS ANNE: a. Conditional Change of Zoning from AG-1 Agricultural and AG-2 Agricultural to PD-1-12 (P- 1 Preservation) to preserve natural open space at 3049 New Bridge Road b. Modification of Proffers of a Conditional Change of Zoning (approved May 10, 2005 and Modified February 14, 2012) to ADD the lot at 3049 New Bridge Road RECOMMENDATION INDEFINITE DEFERRAL 11. Applications of the City of Virginia Beach to: a. ADD Article 22, Sections 2200 through 2212 ESTABLISHING the Central Business Core District b. AMEND the Official Zoning Map re "CBC Central Business Core DistricY" c. ADD, AMEND, REORDAIN, REPEAL or RENUMBER certain Sections to CONFORM to the provisions of Article 22 of the City Zoning Ordinance (CZO) re conformance d. AMEND the Pembroke Strategic Growth Area 4 Implementation Plan and the Policy Document of the Comprehensive Plan e. AMEND and REORDAIN Sections 5.5, 5.613 and 5.14 of the Site Plan Ordinance applicable to property within the District f. ESTABLISH Transition Rules for the review of Site Plans, Subdivision Plats and other Plans for development g. AMEND Section 33-114.3 re encroachments by outdoor cafes, etc., within certain Zoning Districts h. AMEND Section 401 re farm stands in Agricultural Districts RECOMMENDATION M. APPOINTMENTS APPROVAL GREEN RIBBON COMMITTEE HISTORIC PRESERVATION COMMISSION HUMAN RIGHTS COMMISSION 1NVESTIGATIVE REVIEW PANEL PERSONNEL BOARD PROCESS IMPROVEMENT STEERING COMMITTEE VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION (VBCDC) 2040 VISION TO ACTION COMMUNITY COALITION COMMISSION WORKFORCE HOUSING ADVISORY COMMITTEE N. UNFINISHED BUSINESS 0. NEW BUSINESS P. ADJOURNMENT *********?****?************** If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 *?*****?************************ CITY COUNCIL RETREAT Economic Development Office Town Center Monday, September 8, 2014 2014 CITYHOLIDAYS Memoricat Day - <1%Ioztrday, .Hay 26 Inrlependerace Dcg - Friday=, .dzcly 4 1 e?bor• &q _ .'VIQnrlay, September° I t'eterc€fzs Dtt,y - Ticesckyl> Novemher• II 7'hank.cgavang Drky atad I)tq q?'ter• 77iaraks;iving _ TItursclag,lN`ovembeir 27 tcnd Fr•id(g,1Vovetttber 28 Chr•isimas Eve (hal f=du)) - Wedne,sdeq, Z?eeetnber° 24 CIrristtnas IDery - 7'ltursdcq, Decetttber 25 02/25/2014/gw -1- VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia February 25, 2014 Mayor William D. Sessoms, Jr., called to order the City Council's Informal Session, in the City Council Conference Room, Tuesday, February 25, 2014, at 3: 30 P.M. Council Members Present: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: None February 25, 2014 -2- CITY COUNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #6350I 3:30 P.M. Mavor Sessoms introduced and welcomed Jerald Banagan, City Assessor. Mr. Banagan advised this presentation will provide the projected FY2015 Real Estate Assessments. Mr. Banagan expressed his appreciation to City Council for the opportunity to provide this information: r,irctiecled [X 2015 Real Estate Asses?aienks Assessments $ 50,518,616,500 Tax Revenue* $ 469,823,133 'Based iipon FY 2074 tax rate of %0.93 Each $.Ol of the tax rate will generate $S0.5s??000 February 25, 2014 -3- CITY COUNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #63501(Continued) Mr. Banagan advised the Ciry had approximately 6,700 Real Estate Sales in FY2013 and 1,400 were under some sort of distress. The overall median change is 1.76% and overall mean change is 1.93%: Avera.ge Ap nreciatian/Uepreciati . .. . , . . . . .. 1.76% 1.93% ?:. Residential 1.84 % Residential 1.91 % Apartment 6.09 % I Apartment 6.87 % Commercial/lndustrial 0 % '. Commercial/Industrial 1.76 % This is the first year since 2009 the City has had an increase in assessments: Averag e Ap vreciationlDep reciation . ... 2015 1.769% 1.93 % . 2014 0 % -2.22 % 2013 4.87% -5.29% 2012 -2.56 % -3.09 % 2011 -4.54 % -5.54 % . . 2010 -3.32 % -3.46 % 2009 0 % 2.56% 2008 21.36 % 18.54 % 2007 2151 % 19.61 % 2006 19.56 % 19.78 % -' February 25, 2014 -4- CITY COUNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #63501(Continued) Average residential values have a positive change with the biggest increase in high rise condos followed by single family homes: Averag e Residential Values ' SingleFamily . 97,720 $247,200 $305,000 $9,700 - 3.31 . Townhouse ' 19,695 $128,900 $140,300 $ 500 ' 0.4% i'°w ILse . 79,741 $181,600 $211,400 $2,600 . 1.3! . Condominium - '. High Rise . ..2;842 $260,800 $293,900 $13,700 . 4.9% Condo/Co op : . Duplex/Home 1,428 $291,000 $405,600 $13,500 3.4! :withApaztments +. .. . All Residences i 141;426. . $220,900 . . . $269,800 : $7,400 . 2.8 % : "ROUnded to neare sr $100 February 25, 2014 -5- CITY CO UNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #63501(Continued) ' Assessment Caznp arison by Classification CWsification , 014 Assessment i 20 . General Commercial 10.0 % 9.8 % 9.7 % Hotel . 2.0% ! >- 2.0% I 16.8% ;?-16.6% 2.1% 16.4% Office 3.1 % i 3.0 % 2.9 % . ..Industrial 1.7'/ -J 1.8% - 1.7% Apartment 62% ?., 5.8%-'`. 5.5% Residential 61.2% ? 61.6% = 61.6% Townhouse 5.5 % ? 83.2 % 5.79/6 } 83.4 % 5.9 %53.6 % Condominium 10.0% ; 10.0% I 10.3% Agriculture 0.3 % --' 0.3 % -= 0.3 % The City had an increase in new construction of approximately $336-MILLION, with 75% being residential construction: New eanstructia? ' panuary 2013 thru December 2013) 28 .. General Commcrdal $52,777,700 . '5 Office. . 26,355,000 - 42 'Commerdal/Indus[rial Additions 6,119,300 Total Commercial New ConswcHm $85,251,400 25.4% . 424 SingleFamily .. $91,468,900 . . .. . 2 Duplexes 601,700 6 Townhouses 1,061,600 . . 231 Condominium Units 48,260,700 . 702. Apaztmen[s(MUlti-Family 76,366,000 . . . . . . 7,065 ResidenfialAddi[ions 33,119,200 TotaC$esidenfialNewConsWCtion -------- ------- $150G$78,100 74.6% ------ February 25, 2014 -6- CITY COUNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #63501(Continued) The number of new housing units built continues to rise; approximately 1,367 new housing units were built in the City this past year: Number of New Housing Uni#s Buzit 2,500 .? 2,000 ? 1,500 ? 1.000 o ? x . ' 500 ? `.???z ? The projected FYI S Assessment Change is 3.6%: February 25, 2014 -7- CITY CO UNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #63501(Continued) Both TIFs increased slightly in value. The Sandbridge TIF is over $1-BILLION.• T?n?cremen# Financing & S12ecial Servic? pi,..sfti.£h San dbridge D r Base Year FY 1998 $2061 Million Preliminary FY 2015 $1.048 Billion D . ...BaseYear.. FY1999 $151.8Ivtillion . .. Preliminary FY2015 $7381Million SSD First Year FY 2003 $ 185Million Preliminary FY2015 $344.1Millian - FY2015asofJanuary2014 'CFI) Soufh 71Fviclud,s fhc S5D The City has five (5) Special Service Districts: Neighborhood Dredging Special Service Districts ? Old Donation Creek $36.0 Million ? BayvilleCreek ? $14.2Million Shadow Lawn $16.0 Million . . . ? . ? . ? . Chesopeian Colony $72.5 Million .. Harbour Point $19.5 Million FYZOISazofJanuary2al4 February 25, 2014 -8- CITY CO UNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #63501(Continued) In 2013, 43 buildings received a tax credit for being "energy efficient ": Energy Effzcient BuildianZs Partial Real Estate Tax Reduction 0 Residential Properties 34 $25,678 Commercial Properties 9 62,292 ? Total 43 $87,970 -easee uPon Fr 2014 rax .are of $0,78 The City has ten (10) properties that are on the Virginia Landmarks Register and receive partial real estate tax reduction: Y'ir inia Lanclmarks Registe? ? Partial Real Estate Tax Reduction ? . t Hermitage House ? ? . Keeling House . ? Miller-Masury House/Greystone Manor ? Pembroke Manor ? ? . . . Shidey Hall . Thomas Murray House ? Weblin House ? Woodhouse House ? Briarwood ? Green Hill House ? - 'eased upon FY 2014 rax rate o( $0.49 February 25, 2014 -9- CITY COUNCIL'S BRIEFING REAL ESTATE ASSESSMENTS ITEM #63501(Continued) The City has 805 citizens that are 100% Disabled Veterans and exempt from Real Estate Taxes: Real Estate Tax Exernptian far 100°U D'xsabled Veterans ? 6111411115, , ' . 805 $1,941,931 Mr. Kellam, the Commission of the Revenue administers this program and advised the number of citizens eligible has decreased.• iteAl Estate Titx 1Exemp0on/Peferxal(Frgv4e fQr enjor Citizens & Disabled Pe?sctns 5 - .- FY 2014 7,251 , $31,476 ! $12,667,599 FY 2013 7,598 '.. $61,798 $73,932,529 . FY2012 7,398 $53,339 $14,209,588 FY2011 7,798 $35,755 $15,456,561 FY2010 7,666 $35,717 $76,292,651 FY2009 7,143 '. $30,596 $15,993,977 FY2008 .6,408 $35,304 '.. $74,011,232 . FY2007 5,420 $79,342 $9,651,395 FY2006 4,539 '. $72,806 , $6,147,803 FY2005 3,803 $36,849 '. $4,660,146 Mayor Sessoms expressed his appreciation to Mr. Banagan for his presentation. February 25, 2014 -10- CITY COUNCIL COMMENTS 3: 54 P.M. ITEM #63502 Mayor Sessoms advised the City received another proposal for the construction of an Arena. In the past, City Council directed the Ciry Manager to accept the proposal for further analysis. Mayor Sessoms asked if anyone objected, and no one stating an objection, the Ciry Manager was directed to accept the proposal for further analysis. Coisncilman Dyer stated we all agree this is a critical choice that must be in the best interest of the public. Councilman Dyer suggested using the same model used in December 2012 for a Town Hall Meeting when over 350 individuals attended. The City gained a tremendous amount of input and good information from that meeting. Councilman Dyer and Councilman Wood suggested having a similar Town Hall Meeting even before the financials come in from the City in the hope of presenting the concept to the citizens as preliminary information. Mayor Sessoms expressed his appreciation to Councilman Dyer and Councilman Wood, his appointed Liaisons for Civic Engagement, for agreeing to oversee this important community engagement. He suggested the City have a timeline to provide the Citizens. February 25, 2014 -11- CITY COUNCIL COMMENTS (Continued) ITEM #63503 "MARY R USSO VOL UNTEER GARDEN" Councilman Wood distributed a Resolution renaming the VolunteeY Garden in recognition of Mary Russo. He advised Mrs. Russo has some health issues and he thought this would be a very nice gesture, considering for the past thirty-eight (38) years she has been in charge of the Volunteer Resource Office that saves the City on average $20-MILLION per year. Councilman Wood advised the proposed Resolution is "REQUESTED BY CITY COUNCIL" and appreciates the entire Council supporting this Resolution. The official ceremony will be held on April 15`" at the Annual Volunteer Recognition Awards. Mayor Sessoms asked if anyone objected to adding this to today's Agenda. There being no objection, the Resolution will be added to the Agenda for consideration. February 25, 2014 -12- CITY COUNCIL COMMENTS (Continued) ITEM #63504 Coz+ncilman Moss advised Delegate DeSteph was recently named the Subcommittee Chairman for Science and Technology and hopefully the City can use this to help the Ciry with off shore energy and other applicable issues before the City. February 25, 2014 -13- CITY CO UNCIL COMMENTS (Continued) ITEM #63505 Councilman Moss requested the status of the transportation modeling as Old Dominion University was goiizg to come back and provide some type of visualization of the work they are performing. City Manager Spore advised the City is actively working with ODU and requested Deputy City Manager provide a quick update. Mr. Hansen advised the "Micro " is almost complete and the "Macro " is complete. The past few months, the group has been working on the model for the Southeastern Parkway and will be happy to schedule a Briefing for ODU to present the Micro Model and explain more about the evaluation of the Southeastern Parkway. Councilman Moss confirmed it is an interactive graphical representation with the most modern trafisportation modeling software. February 25, 2014 -14- CITY COUNCIL COMMENTS (Continued) ITEM #63506 Councilman Moss requested a status update on working with local universities on our economic analysis of the City's Public/Private Partnerships. Mayor Sessoms advised this is being worked on and he has a few related meetings on his calendar. He will appoint a Committee at the State of the City to begin working on this project. February 25, 2014 -15- CITY CDUNCIL COMMENTS (Continued) ITEM #63507 Councilman Moss discussed, during the Retreat, what the exit strategy was for the expanded TIF and putting it back on the tax base. City Manager Spore advised City Council has a real decision opportunity in approximately 2020, when the first bonds are retired. Councilman Moss requested the City to mark their calendar. February 25, 2014 -16- CITY COUNCIL COMMENTS (Coiztinued) ITEM #63508 Coasncilman Moss requested, as a part of the FY 2014-1 S Budget process, Public Safety Departments provide the health of the force, how many part time jobs employees have, what is the attrition between S ancl 10 years of employment and anything else that gives City Council an appreciation for the stress that is on public safety employees. Councilman Moss advised this personal dimension should be included in the Budget process. February 25, 2014 -17- CITY COUNCIL COMMENTS (Continued) ITEM #63509 Council Lady Wilson advised she received a call from Chairman Fraim of the Beaches and Watenvays Commission stating the Commission does not feel Public Hearings are necessary regarding the possibility of a tax increase and she just wanted to confirm City Council's approval. February 25, 2014 -18- CITY COUNCIL COMMENTS (Continued) ITEM #63510 Council Lady Ross-Hammond advised she attended the Lions Club meeting and was impressed with the free eye exams and glasses program offered at some of the local elementary schools. February 25, 2014 -19- CITY COUNCIL COMMENTS (Continued) ITEM #63511 Council Lady Ross-Hammond expressed her appreciation to Depury City Manager Hansen and the Police Department, Special Operations, Aviation Unit, for the aerial tour of the City. February 25, 2014 -20- CITY COUNCIL COMMENTS (Continued) ITEM #63512 Councilman Martin advised he will be absent from the March 4`I' Workshop and will miss the Joint School Board and City Council Health Care presentation. He is scheduled to meet with Depury City Manager Cindy Curtis on Monday, March 10`'', for her to bring him "up to speed ". February 25, 2014 -21- CITY COUNCIL COMMENTS (Continued) ITEM #63513 Mayor Sessoms advised that he, Vice Mayor Jones, Council Lady Henley, Council Lady Ross-Hammond and Councilman Dyer attended the Transportation Planning Organization Retreat and he feels they walked away with a"WOW Factor" regarding transportation funding that is moving forward of over $25-MILLION. A group was established Regionally in an effort to give larger cities more control based on the numbers. Mayor Sessoms reminded the City Council that things have not been signed but it continues to look positive. This will put the City in a good position to maybe not get everything we want, but the City will have rnore of an input. Vice Mayor Jones expressed his appreciation to the Secretary of Transportation, Aubrey Layne, for his outstanding job in presenting the entire package and how it applies to Hampton Roads. February 25, 2014 -22- AGENDA REVIEW SESSION 4: 08 P.M. ITEM #63514 BY CONSENSZIS, the following shall compose the CONSENT AGENDA: K. ORDINANCES/RESOL UTIONS 1. Ordinance and Resolution to AMEND Section 2-20 of the City Code re time and place of the regular meetings of City Council 2. Ordinance to AMEND Section 4 of the Agricultural Lands Preservation (ARP) Ordinance re the definition of Agricultural Use" 3. Ordinance to AUTHORIZE acquisition of an Agricultural Land Preservation (ARP) Easement and the issuance of Contract Obligations of $558,469 re property of Furman G. Wall, Jr. 4. Ordinances to DECLARE property in EXCESS of the City's needs and AUTHORIZE the City Manager to: a. EXECUTE all Disposition and EXCHANGE Documents with Clearfield Real Estate Holdings, LLC at 225 Clearfield Avenue (KEMPSVILLE - DISTRICT 2) b. SELL property at 219 North Oceana Boulevard to William R. and Jill S. Gurley (BEACH- DISTRICT 6) 5. Ordinance to AUTHORIZE dedication of an easement to Virginia Electric and Power Company (VEPCO) at the intersection of Winston Place and East Stratford Road 6 Ordinances to AUTHORIZE the City Manager to EXECUTE: a. a Lease with 23 Atlantic LLC at 2401 Atlantic Avenue b. a Lease with Vetshouse, Incorporated at 1508 Ohio Avenue c. a Lease with Sweet Enchantments Bakery, LLC at the Farmer's Market 7. Ordinance to GRANT a Franchise Agreement re Pedal Cab operation in the Resort Area to Seven Cities Rickshaw, LLC 8. Resolution to AUTHORIZE a Policy on the display of banners on pedestrian bridges in Central Business Core District at Town Center 9. INVESTMENT OF CITY FUNDS: a. Resolution re a REVISED Policy and the Treasurer DIRECTED to use the Policy for the investment of City funds b. Ordinance to AUTHORIZE the VACO/VML Virginia Investment Pool Trust Fund to invest certain City funds within the City Treasurer's control February 25, 2014 -23- AGENDA REVIEW SESSION ITEM #63514(Continued) 10. LESNER BRIDGE replacement.• a. Resolution to REQUEST the Virginia Department of Transportation (VDOT) designate the Lesner Bridge replacement as a Revenue Sharing Program project b. Ordinance to ACCEPT and APPROPRIATE state and federal funding from the Virginia Department of Transportation (VDOT) and TRANSFER those funds within the roadway program 11. Ordinance to AUTHORIZE a temporary encroachment into a portion of City property at "the Boat Basin " in Murray's Creek for SHEILA P. ELDRIDGE re gazebo, bulkhead, landscape buffer and open pile timber pier at 1138 Milissa Court 12. Ordinances to ACCEPT, APPROPRIATE and TRANSFER: ADD ON a. $523, 003 from various buildings rehabilitation and renewal, Phase III, to Economic Development and the Strategic Growth Area Offices b. $513, OSO from the School Site Landscaping Internal Service to Parks and Recreation re landscape projects c. $ 90, 000 interest free loan to the Plaza Rescue Squad re a new ambulance d. $ 74,842 from the Virginia Department of Health, Office of Emergency Medical Services (EMS) re purchase of cardiac monitor upgrades, Lucas CPR devices and automatic external defibrillators e. $20, 000 from Smart Beginnings South Hampton Roads to Economic Development re Early Learning Challenge Grant Initiative Resolution NAMING the Volunteer Recognition Garden at Municipal Center as "THE MAR Y C. R USSO VOL UNTEER RECOGNITION GARDEN" CO UNCILMAN MOSS WILL VOTE VERBAL NAY ON ITEM #3 CO UNCILMAN MOSS WILL ABSTAIN ON ITEM #5 MAYOR SESSOMS WILL ABSTAIN ONITEM #9a/b COUNCILMAN MOSS WILL VOTE A VERBAL NAY ON ITEM #12a February 25, 2014 -24- AGENDA REVIEW SESSION ITEM #63514(Continued) BY CONSENSUS, the following shall compose the PLANNING BY CONSENT AGENDA: L. PLANNING Application of GRAHAMREAL ESTATE, LL /KCLB, LLC DISTRICT 1- CENTER VILLE a. Amendment to Green Run PDH Plan to allow development of a mifai-warehouse (self-storage) b. Variance to the Subdivision Ordinance, Section 4.4(b), to create a new parcel at 1545 Lynnhaven Parkway 2. Application of CROWN CASTLE IISA, INC. for a Relocation of a Nonconformin Structure (communication tower) at Meadow Ridge Lane DISTRICT 7- PRINCESS ANNE 3. Application of R& JRETAIL INVESTMENTS, INC. for Modi acation of Conditions re a service station and car wash (approved December 13, 1988 and Modified August 26, 1991) at 5765 Northampton Boulevard DISTRICT 4- BAYSIDE 4. Application of AD VENTURE SPORTS PARK, LLC/KAMPGROUNDS OFAMERICA, INC. for Modi acation of a Conditional Use Permit re ADDING outdoor recreation (Paintball Park) (approved December 8,1969) at 1304 and 1252 Prosperity Road DISTRICT 6 - BEACH 5. Application of MAHESH GOPINATH (applicant) and KELHAM PROPERTIES, LLC (owner) for a Conditional Use Permit re Yocational (dental assisting) Training School at 405 South Parliament Drive DISTRICT 2- KEMPSVILLE 6 Application of LUCILA A. FIGUEREO for a Conditional Use Permit for a Hoine Family Child Daycare at 2021 Manassas Run DISTRICT 1- CENTERVILLE 7. Application of WITCHDUCK COURT, LLC Modification of a Conditional Chan?e of Zonin re Proffer No. 4(fencing) at 527 North Witchduck Road DISTRICT 4- BAYSIDE 8. Application of HOME ASSOCIATES OF VIRGINIA, INC. for a Conditional Chanize of Zonin rom AG-1 Agricultural to Conditional R-I S Residential at 1864 Indian River Road (Deferred December 10, 2013) DISTRICT 7- PRINCESS ANNE 9. Application of HIF, LLC; HIC, LLC; MACH ONE, LLC for a Modification of a Conditional Chan-re o Zoning (approved April 11, 1995 and Modified October 11, 2011) re development of a retail building at 3877 Holland Road DISTRICT 3- ROSE HALL February 25, 2014 -25- AGENDA REVIEW SESSION ITEM #63514(Continued) 10. Applications of HOFD ASHVILLE PARK, LLC /ELBOW FARMS ASSOCIATES, DISTRICT 7 - PRINCESS ANNE: a. Conditional ChanQe o ZoninQ from AG-1 Agricultural and AG-2 Agricultural to PD-112 (P-1 Preservation) to preserve natural open space at 3049 New Bridge Road b. Modification of Proffers of a Conditional Change of Zoning (approved May 10, 2005 and Modified February 14, 2012) to ADD the lot at 3049 New Bridge Road H. Applications of the City of Virginia Beach to: a. ADD AYticle 22, Sections 2200 through 2212 ESTABLISHING the Central Business Core District b. AMEND the Official Zoning Map re "CBC Central Business Core District " c. ADD, AMEND, REORDAIN, REPEAL or RENUMBER certain Sections to CONFORM to the provisions of Article 22 of the City Zoning Ordinance (CZO) re conformance d. AMEND the Pembroke Strategic Growth Area 4 Implementation Plan and the Policy Document of the Comprehensive Plan e. AMEND and REORDAIN Sections 5.5, 5.6B and 5.14 of the Site Plan Ordinance applicable to property within the District f. ESTABLISH Transition Rules for the review of Site Plans, Subdivision Plats and other Plans for development g. AMEND Section 33-114.3 Ye encroachments by outdoor cafes, etc., within certain ZoningDistricts h. AMEND Section 401 re farm stands in Agricultural Districts ITEM #2 WILL BE DEFERRED TO MARCH ll, 2014 ITEM #4 WILL BE CONSIDERED SEPARATELY ITEM #S WILL BE CONSIDERED SPEARTELY ITEM #8 WILL BE CONSIDERED SEPARATELY ITEM #IOa/b WILL BE DEFERRED INDEFINATEL Y February 25, 2014 -26- ITEM#6351 S 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 officers, appointees or employees pursuant to Section 2.2-3711(A) (1) Council Appointments: Council, Boards, Commissions, Committees, Authorities, Agencies and Appointees PUBLICLY-HELD PROPERTY: Discussion or consideration of the, acquisition of real property for public purpose; or of the disposition of publicly-held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3 711 (A)(3). Acquisition/Disposition of City Property: Centerville District Beach District Centerville District PUBLIC CONTRACT: Discussion of the award of a public contract involving expenditure of public funds, and discussion of terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(30) 25"' Street Comprehensive Agreement Modification February 25, 2014 R E S 0 L U T 10 N CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM #6351 S Page 27, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW, THEREFORE, BE IT RESOLVED: That the Virginia Beach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed ar considered by Virginia Beach City Council. uth Hodges Fraser, MMC City Clerk February 25, 2014 -27- ITEM# 63515(Continued) Upon motion by Councilman Dyer, seconded by Councilman Moss, City Council voted to proceed into CLOSED SESSION at 4:12 P.M. Voting: I1-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Poting Nay: None Council Members Absent: None (Closed Session 4:12 P.M. - 5:44 P.M.) February 25, 2014 -zs- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL February 25, 2014 6: 00 P.M. Mayor William D. Sessoms, Jr., called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the City Council Chamber, City Hall, on Tuesday, February 25, 2014, at 6: 00 P.M. Coicncil Members Present: Robert M. Dyer, Barbara M. Henley, Vice Mayor Shannon DS Kane, Brad Martin, John D. Moss, Hammond, Mayor William D. Sessoms, Jr., John E. Wilson and James L. Wood Council Members Absent: None INVOCATION: Father James E. Parke Louis R. Jones, Amelia N. Ross- Uhrin, Rosemary 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 tYansactions. 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 impYOpriery 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 Realry, which is an affiliate of TowneBank. In order to ensure his compliance with both the letter and spirit of the State and Local Government Conflict of Interests Act (the "Act"), it is his practice to thoroughly review each City Council agenda to identify any matters in which he might have an actual or potential conflict. If, during his review of an agenda, he identifies a matter in which he has a personal interest ", as defined by the Act, he will either abstain from voting, or file the appropriate disclosure letter with the City Clerk to be included in the official records of City Council. Mayor Sessoms' letter of Murch 24, 2009, is hereby made a part of the record. February 25, 2014 -29- 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 Maf°ch 31, 2007, Vice Mayor Jones retired fYOm the Board of Directors. Although, he is no longer a Bourd Member, he owns stock in Fulton Financial and that stock ownership causes him to have a "personal interest" in Fulton Firrancial. 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 prepaYe and file the appropriate disclosure letter to be recorded in the official recoYds of City Council. Vice Mayor Jones regularly makes this disclosure. Vice Mayor Jones' letter of April 10, 2007, is hereby made a part of the Yecord. Coztincil Lady Rosemary Wilson DISCLOSED she is a Real Estate Agent affiliated with Prudential Towne Realty ("Prudential "). Because of the nature of Real Estate Agent affiliation, the size of Prudential, and the volume of transactions it handles in any given year, Prudential has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of 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 City Council. Council Lady Wilson regularly makes this disclosure. Council Lady Wilson's letter ofAugust 13, 2013, is hereby made a part of the record. February 25, 2014 -30- Itenz -V-E CERTIFICATION ITEM #63516 Upon motion by Councilman Dyer, seconded by Councilman Uhrin, 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 City Council. Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Yoting Nay: None Council Members Absent: None February 25, 2014 -31- Item -V-F.1 MINUTES ITEM #63517 Upon motion by Councilman Dyer, seconded by Council Lady Wilson, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSIONS of February 11, 2014. Voting: 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 -32- ADOPTAGENDA FOR FORMAL SESSION ITEM #63518 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION February 25, 2014 -33- Item -V-H.1 MAYOR'S PRESENTATION ITEM #63519 KEEP AMERICAN BEA UTIFUL Mayor Sessoms introduced and welcomed Susan Burkhardt, Senior Director of Marketing and Training, Stanford Connecticut, for "Keep America Beautiful ". Ms. Burkhardt expressed her appreciation to the City Council for participating and receiving this Award. She congratulated the City on becoming an affiliate of Keep Arnerica Beautiful. Ms. Burkhardt recognized Dan Baxter and other members of the Virginia Beach Clean Communiry Commission in attendance. In addition, Ms. Burkhardt expressed her appreciation to Linda Miner for working closely with Keep America Beautiful over the past year and `half. Ms. Burkhardt recognized Keep Virginia Beautiful Executive Director, Mike Baum (the nephew offormer Coztncilman John Baum); Keep Norfolk Beautiful Executive Director, John Deuel; Public Works Interim Director Phil Davenport; Parks and Recreation Director Michael Kalvort, as well as Staff from Waste Management and PaYks and Recreation. Ms. Burkhardt advised Keep America Beautiful was founded in 1953 and is the Nation's leading non- profit that brings people together to build and sustain vibYant communities. With a network of over 1,200 affiliates and organizations, Keep America Beautiful works with millions of Volunteers to take actions in their communiry. The mission is to engage individuals to take greater responsibilities to improve their conzmuniry environment. They offer solutions that create clean beautiful public places, reduce waste and increase recycling, generate positive impact on local economies and inspire generations of the next environmental stewards. Based on the efforts of City Leaders and the City Council appointed Clean Community Commission, Ms. Burkardt is pleased to announce the City is a new affiliate of Keep America Beautiful and is dedicated to keeping Virginia Beach beautiful. Chairman Dan Baxter expressed his appreciation to City Council and Keep America Beautiful. Staff has woYked very hard over the past year and a`half and will continue to do so to keep Virginia Beach "Beautiful ". Mayor Sessoms expressed his appreciation to Ms. Burkhardt, Dan Baxter, the Clean Community Commission and City Staff. February 25, 2014 -34- Itenz -V-I.1 BID OPENING ITEM #63520 Mayor Sessoms advised: LEASE OF CITY-OWNED PROPERTY 2401 Atlantic Avenue Pursuant to Virginia Code Section 15.2-2102, Mayor Sessoms summarized the bids that had been received for a proposed lease of a portion of the City property located at 2401 Atlantic Avenue for the purpose of maintaining concrete piles and pile caps for the benefit of the adjacent building, the Comfort Inn at the Beach. One bid was received, as follows: 1. 23 Atlantic, LLC has bid: - Term: 40 year term - Consideration: $1.00 per year Mayor Sessoirts asked "Are there any other persons desiring to submit a bid at this time?" There being no further bids, the bidding was closed. City Council accepted the Bid of 23 Atlantic, LLC, and moved forward with a Public Hearing for lease of this property. February 25, 2014 -35- Item -V-J.la/b/c PUBLIC HEARING ITEM #63521 Mayor Sessoms DECLARED A PUBLIC HEARING: LEASES OF CITY-OWNED PROPERTY a. 2401 Atlantic Avenue b. Virginia Beach Farmers Market to Sweet Enchantments Bakery, LLC c. Vetshouse at 1508 Ohio Avenue There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. February 25, 2014 -36- Itent -V-J.2a PUBLIC HEARING ITEM #63522 Mayor Sessoms DECLARED A PUBLIC HEARING: EXCHANGE OF EXCESS CITY-OWNED PROPERTY a. 225 Clearfield Avenue There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. February 25, 2014 -37- Item -V-J.3a PUBLIC HEARING ITEM #63523 Mayor Sesso`ns DECLARED A PUBLIC HEARING: EXCHANGE OF EXCESS CITY-OWNED PROPERTY a. 219 N. Oceana Boulevard There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. February 25, 2014 -38- Item -V-J.4a PUBLIC HEARING ITEM #63524 Mayor Sessoms DECLARED A PUBLIC HEARING: PURCHASE AGREEMENT for the ACQUISITION OF ARP DEVELOPMENT RIGHTS a. 3500 Block of Old Carolina Road There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. February 25, 2014 -39- Item -V-J.Sa PUBLIC HEARING ITEM #63525 Mayor Sessoms DECLARED A PUBLIC HEARING: PROPOSED UTILITYEASEMENT OVER CITY-OWNED PROPERTY a. Dominion Virginia Power at Winston Place There being no speakers, Mayor Sessoms CLOSED THE PUBLIC HEARING. February 25, 2014 -40- ADD ON ITEM #63526 Upon motion by Councilman Wood, seconded by Vice Mayor Jones, Ciry Council APPROVED the request to ADD to the Consent Agenda: Resolution NAMING the Volunteer Recognition Garden at the Municipal Center as "THE MAR Y C. R USSO VOL UNTEER RECOGNITION GARDEN" Voting: I1-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 -41- Item -V-K ORDINANCES/RESOL UTIONS ITEM #63527 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED, IN ONE MOTION, BY CONSENT, Items 1, 2, 3(MOSS NO), 4a/b, S(MOSS ABSTAIN), 6a/b1c, 7, 8, 9a/b(MAYOR ABSTAIN), IOa/b, 11, 12a(MOSS NO)/b/c/d?e and THE ADD ON Resolution of the CONSENT AGENDA, composed of Ordinances, Resolutions and the Planning Applications. Voting: 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Yoting Nay: None Council Members Absent.• None February 25, 2014 -42- Item -V-K.I ORDINANCES/RESOL UTIONS ITEM #63528 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance and Resolution to AMEND Section 2-20 of the City Code re time and place of regular meetings of City Council Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Tjoting Nay: None Council Members Absent.' None February 25, 2014 REQUESTED BY VICE MAYOR JONES 1 AN ORDINANCE AND RESOLUTION TO 2 AMEND SECTION 2-20 OF THE CITY CODE 3 PERTAINING TO TIME AND PLACE OF 4 REGULAR MEETINGS 5 6 SECTION AMENDED: § 2-20 7 8 BE IT ORDAINED AND RESOLVED BY THE CITY COUNCIL OF THE CITY OF 9 VIRGINIA BEACH, VIRGINIA: 10 11 That Section 2-20 of the Code of the City of Virginia Beach, Virginia, is hereby 12 amended and ordained to read as follows: 13 14 Sec. 2-20. Time and place of regular meetings. 15 16 (a) Regular formal meetings of the council shall be held in the Council Chambers of the 17 City Hall Building, Municipal Center, Virginia Beach, Virginia, on the Seeend first 18 and #eurt# third Tuesdays of each month at 6:00 p.m., unless such date shall fall 19 upon a legal holiday. However, in July and December of each year, regular 20 meetings shall instead be held on the first two (2) Tuesdays of the month at 6:00 21 p.m. The council may also convene informal meetings on the dates of regular 22 formal meetings at such times as the council may deem appropriate, and on the 23 #+r-st second and #hir4 fourth Tuesday of every month except July and December. 24 Informal meetings, which shall be held in the Council Conference Room adjacent to 25 the Council Chambers and at which no votes shall be cast, shall be for the purpose 26 of discussing matters of interest to the council, and receiving briefings/reports from 27 the city manager, city staff and city boards, commissions, committees and other city 28 agencies. The city manager shall notify the public of the times of such informal 29 meetings in advance thereof. 30 31 (b) To accommodate citizen participation in public hearings, the council may convene 32 any council meeting at such public facility in the city that will in the judgment of city 33 council accommodate the citizens; provided, however, that notice shall be provided 34 to the press and public by the city manager. 35 36 (c) Pursuant to section 2-56, the city clerk shall prepare official minutes of all formal 37 and informal meetings of the council. Additionally, all formal and informal meetings 38 of council held in either the Council Chambers or the Council Conference Room 39 shall be cablecast live. Formal and informal meetings held at a different location 40 pursuant to subsection (b) shall be recorded for later cablecast. Notwithstanding the 41 above, the inoperability or other technical malfunction of cablecasting or video 42 recording of a meeting shall have no effect on the validity of either the meeting or 43 any action taken during the meeting. 44 45 The effective date of this ordinance shall be June 1, 2014. 46 AND, FURTHER, BE IT RESOLVED: 47 That the City Clerk shall cause a copy of this ordinance to be published in a 48 newspaper of general circulation and posted on the front door of the City Council 49 Chamber at least seven days prior to the June 3, 2014, City Council meeting. Adopted by the City Council of the City of Virginia Beach, Virginia, on this 25t4iay of February .2014. APPROVED AS TO LEGAL SUFFICIENCY: .?' ` City Attorney's Offic CA12892 R-5 February 19, 2014 -43- Item -V-K.2 ORDINANCES/RESOL UTIONS ITEM #63529 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to AMEND Section 4 of the Agricultural Lands Preservation (ARP) Ordinance re the definition of "Agricultural Use" Voting: 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, JY., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE TO AMEND SECTION 4 OF THE 2 AGRICULTURAL LANDS PRESERVATION 3 ORDINANCE, PERTAINING TO THE DEFINITION OF 4 THE TERM "AGRICULTURAL USE" 5 6 Section Amended: Agricultural Lands Preservation 7 Ordinance (City Code Appendix J) Section 4 8 9 10 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 11 BEACH: 12 13 That Section 4 of the Agricultural Lands Preservation Ordinance, pertaining to 14 the definition of the term "agricultural use," is hereby amended and reordained to read 15 as follows 16 17 Sec.4. Definitions. 18 19 .... 20 21 (d) Agricultural use means the bona fide production of crops, animal or fowl, 22 including, but not limited to, the production of fruits, vegetables, honey, grains, meat, 23 poultry and dairy products; the raising of livestock and poultry; and the production and 24 harvest of products from horticultural, silvicultural or aquacultural activity. The term also 25 includes (i) the repair, expansion or replacement of no more than one bona fide dwelling 26 occupied by the landowner or tenant as of the date of application for entry in the 27 agricultural reserve program and no more than one freestanding mobile home, as 28 permitted by section 19-19 of the City Code; (ii) accessory or conditional uses directly 29 related to agricultural activities conducted on the same property, including the sale of 30 agricultural products permitted by section 401(b) of the City Zoning Ordinance: a-nd dog 31 kennels, riding academies, horses for hire or boarding of horses and farm stands 32 greater than two thousand five hundred (2,500) square feet in area, exclusive of rest 33 rooms and hand-washinq facilities allowed under section 401(a) of the City Zoning 34 Ordinance; (iii) educational, recreational and amusement activities allowed under 35 section 401(c) of the City Zoning Ordinance; and (iv) septic tanks and drainfietds 36 approved by the health department and which cannot be located within an area not 37 encumbered by an agricultural land preservation easement. The term does not include 38 the processing of agricultural, silvicultural, horticultural or aquacultural products, except 39 as an accessory use. 40 41 .... 42 43 44 45 46 47 48 49 50 51 COMMENT The amendments add to the definition of the term "agricultural use" farm stands greater than 2,500 square feet in area, exclusive of rest rooms and hand-washing facilities, and educational activities meeting the requirements of Section 401(c) of the City Zoning Ordinance. The import of the amendments is that those activities would be allowed on property in the Agricultural Reserve Program. 25th Adopted by the City Council of the City of Virginia Beach, Virginia on the February , 2014. 52 of APPROVED AS TO CONTENT: Agriculture Department CA-12829 R-1 October 24, 2013 APPROVED AS TO LEGAL SUFFICIE CY: 6 dk4?, ? . ? - 4 City Attorney's Office 2 -44- Item -V-K.3 ORDINANCES/RESOL UTIONS ITEM #63530 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, Ciry Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE acquisition of an Agricultural Land Preservation (ARP) Easement and the issuance of Contract Obligations of $558, 469 re property of Furman G. Wall, Jr. Voting: 10-1 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay. John D. Moss Council Members Absent: None February 25, 2014 1 AN ORDINANCE AUTHORIZING THE ACQUISITION OF AN 2 AGRICULTURAL LAND PRESERVATION EASEMENT AND 3 THE ISSUANCE BY THE CITY OF ITS CONTRACT 4 OBLIGATIONS IN THE MAXIMUM PRINCIPAL AMOUNT OF 5 $558,469 (PROPERTY OF FURMAN G. WALL, JR.) 6 7 WHEREAS, pursuant to the Agricultural Lands Preservation Ordinance (the 8 "Ordinance"), Appendix J of the Code of the City of Virginia Beach, there has been 9 presented to the City Council a request for approval of an Installment Purchase Agreement 10 (the form and standard provisions of which have been previously approved by the City 11 Council, a summary of terms of which is hereto attached, and a copy of which is on file in 12 the City Attorney's Office) for the acquisition of the Development Rights (as defined in the 13 Installment Purchase Agreement) on certain property located in the City and more fully 14 described in Exhibit B of the Installment Purchase Agreement for a purchase price of 15 $558,469; and 16 17 WHEREAS, the aforesaid Development Rights shall be acquired through the 18 acquisition of a perpetual agricultural land preservation easement, as defined in, and in 19 compliance with, the requirements of the Ordinance; and 20 21 WHEREAS, the City Council has reviewed the proposed terms and conditions of the 22 purchase as evidenced by the Installment Purchase Agreement; 23 24 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF 25 VIRGINIA BEACH, VIRGINIA: 26 27 1. The City Council hereby determines and finds that the proposed terms and 28 conditions of the purchase of the Development Rights pursuant to the Installment Purchase 29 Agreement, including the purchase price and manner of payment, are fair and reasonable 30 and in furtherance of the purposes of the Ordinance, and the City Manager or his designee 31 is hereby authorized to approve, upon or before the execution and delivery of the 32 Installment Purchase Agreement, the rate of interest to accrue on the unpaid principal 33 balance of the purchase price set forth hereinabove as the greater of 2.12% per annum or 34 the per annum rate which is equal to the yield on United States Treasury STRIPS 35 purchased by the City to fund such unpaid principal balance; provided, however, that such 36 rate of interest shall not exceed 5.12% unless the approval of the City Council by resolution 37 duly adopted is first obtained. 38 39 2. The City Council hereby further determines that funding is available for the 40 acquisition of the Development Rights pursuant to the Installment Purchase Agreement on 41 the terms and conditions set forth therein. 42 43 3. The City Council hereby expressly approves the Installment Purchase 44 Agreement and, subject to the determination of the City Attorney that there are no defects 45 in title to the property or other restrictions or encumbrances thereon which may, in the 46 opinion of the City Attorney, adversely affect the City's interests, authorizes the City 47 Manager or his designee to execute and deliver the Installment Purchase Agreement in 48 substantially the same form and substance as approved hereby with such minor 49 modifications, insertions, completions or omissions which do not materially alter the 50 purchase price or manner of payment, as the City Manager or his designee shall approve. 51 The City Council further directs the City Clerk to affix the seal of the City to, and attest 52 same on, the Installment Purchase Agreement. The City Council expressly authorizes the 53 incurrence of the indebtedness represented by the issuance and delivery of the Installment 54 Purchase Agreement. 55 56 4. The City Council hereby elects to issue the indebtedness under the Charter 57 of the City rather than pursuant to the Public Finance Act of 1991 and hereby constitutes 58 the indebtedness a contractual obligation bearing the full faith and credit of the City. 59 60 5. The City Council hereby transfers $558,469 from the Agricultural Reserve 61 Program Special Revenue Fund (161) to the General Debt Fund (302). 62 63 Adoption requires an affirmative vote of a majority of all members of the City 64 Council. 65 66 Adopted by the Council of the City of Virginia Beach, Virginia, on this 25thaay of 67 February ,2014. APPROVED AS TO CONTENT Agriculture Department APPROVED AS TO CONTENT: -Z'5 Management Services CERTIFIED AS TO AVAILABILITY OF FUNDS: irector of Finance APPROVED AS TO LEGAL SUFFICIENCY: CM /'-9) Lm J t ? t City Attorney's Office CA1c m o DFS1\Applications\CityLawProd\cycom32\Wpdocs\D011\P015\00049813.DOC R-2 Date: January 16, 2014 2 AGRICULTURAL RESERVE PROGRAM INSTALLMENT PURCHASE AGREEMENT NO. 2013-131 SUMMARY OF TERMS SELLER: Furman G. Wall, Jr. PROPERTY LOCATION: 3500 block of Old Carolina Road (GPIN: 1389-16-1845) PURCHASE PRICE: $558,469 EASEMENT AREA: 125.03 acres, more or less DEVELOPMENT POTENTIAL: 12 single-family dwelling sites (4 reserved by Seller) DURATION: Perpetual INTEREST RATE: Equal to yield on U.S. Treasury STRIPS acquired by City to fund purchase price, but not less than 2.12% (actual rate to be determined when STRIPS are purchased prior to execution of Installment Purchase Agreement). Rate may not exceed 5.12% without approval of City Council. TERMS: Interest only twice per year for 25 years, with payment of principal due 25 years from IPA date RESTRICTIONS ON TRANSFER: IPA ownership may not be transferred (except for Estate Settlement Transfer) for one (1) year following execution and delivery of Installment Purchase Agreement. a a ? z O Q V O J t ? r? 6 ? l? a L "a 1 ? .? 3 • ?, ? = u ? £o? M 0 V Z ?c?a L M C7 Q o -- ui O N a v-4 t? ?• .-?r,•? ri rl r -45- Itenz -V-K.4a ORDINANCES/RESOL UTIONS ITEM #63531 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinances to DECLARE property in EXCESS of the City's needs and AUTHORIZE the City Manager to: a. EXECUTE all Disposition and EXCHANGE Documents with Clearfield Real Estate Holdings, LLC at 225 Clearfield Avenue (KENrPSVILLE - DrsTlucT 2) Voting.• 11-0 Council Members Yoting Aye. Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 An Ordinance Declaring 0.561 +/- Acres of City Property (GPIN 1467-55-3559) located adjacent to 225 Clearfield Avenue to be in Excess of the City's Needs and Authorizing the City Manager to Execute all Disposition and Exchange Documents with Clearfield Real Estate Holdings, LLC WHEREAS, the City of Virginia Beach (the "City") is making improvements to Clearfield Avenue and Cleveland Street as a part of the Greenwich Road/Cleveland Street Crossover Project (CIP 2-401) (the "Project"), in advance of VDOT's project for the new Interstate 264 flyover; WHEREAS, Clearfield Real Estate Holdings, LLC, owns the property located at 225 Clearfield Avenue, upon which Urology of Virginia PLLC ("Clearfield") operates, and which will be impacted by the Project; WHEREAS, it is necessary for the City to acquire 26,686 Sq. Ft. (0.613 Acres) for right-of-way; 20,687 Sq. Ft. (0.475 Acres) for utility and drainage easements; and 10,059 Sq. Ft. (0.231 Acres) for temporary construction easements from Clearfield (collectively, the "Clearfield Property"); WHEREAS, in an effort to move the Project forward, Clearfield and the City propose a transaction which includes the exchange of real property, monetary compensation, and various improvements upon the City property which will all be set forth in a written agreement (the "Exchange Agreement"); WHEREAS, the City is the owner of a certain parcel of land comprising 0.561 +/- acres of land located near the intersection of Clearfield Avenue and Cleveland Street and more particularly described on Exhibit A attached hereto and made a part of this Ordinance (the "City Remnant"), which is residual area from property acquired for the Project and is not needed for public purposes; WHEREAS, the City Council finds that it is in the best interests of the City to 1) declare the City Remnant in excess of the City's needs and exchange the City Remnant for the Clearfield Property; 2) provide monetary compensation to Clearfield in the amount of $362,947.50; and 3) take other action in accordance with the Summary of Terms, attached hereto as Exhibit B and incorporated herein; and WHEREAS, the City Council is of the opinion that the City Remnant is in excess of the City's needs. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That the 0.561 +/- acre City Remnant is hereby declared to be in excess of the needs of the City of Virginia Beach and that the City Manager is hereby authorized to 47 48 49 50 51 52 53 54 55 56 execute the Exchange Agreement and any other documents needed to convey the City Remnant to Clearfield Holdings, LLC and acquire the Clearfield Property, provided such documents are in substantial conformity to the terms set forth in the Summary of Terms attached as Exhibit B, and such other terms, conditions or modifications deemed necessary and sufficient by the City Manager and in a form deemed satisfactory by the City Attorney. This Ordinance shall be effective from the date of its adoption. Adopted by the Council of the City of Virginia Beach, Virginia, on the 25th day of February , 2014. THIS ORDINANCE REQUIRES AN AFFIRMATIVE VOTE OF THREE-FOURTHS OF ALL COUNCIL MEMBERS ELECTED TO COUNCIL. APPROVED AS TO CONTENT APPROVED AS TO LEGAL SUFFICIENCY %mr* c . C?ws(, blic Works/Real Estate CA12566 \\vbgov.com\dfsl \appl ications\citylawprod\cycom32\wpdocs\d008\p022\00068533.doc R-1 February 14, 2014 City Att r ey's Office EXHIBIT "A" Clearfield Propertv (portion of GPIN 1467-55-8570): ALL THAT certain lot, piece or parcel of land, together with the improvements thereon, belonging, situate and being in the City of Virginia Beach, Virginia and being designated and described as "PROPERTY TO BE ACQUIRED FOR RIGHT-OF-WAY PURPOSES AREA = 26,686 SQ. FT. OR 0.613 ACRES," and further designated and described as "PROPERTY TO BE ACQUIRED FOR RIGHT-OF- WAY PURPOSES 26,686 SQ. FT. 0.613 ACRES," as shown on that certain plat entitled, "PLAT SHOWING PROPERTY AND EASEMENTS TO BE ACQUIRED FROM CLEARFIELD REAL ESTATE HOLDINGS, LLC BY THE CITY OF VIRGINIA BEACH FOR GREENWICH ROAD OVERPASS CIP #2-401 VIRGINIA BEACH, VIRGINIA" Scale: 1" = 50', dated May 15, 2013, prepared by Precision Measurements, Inc. TOGETHER WITH the permanent drainage easement designated and described as "PERMANENT DRAINAGE EASEMENT TO BE ACQUIRED AREA = 13,676 SQ. FT. OR 0.314 ACRES" and further designated and described as "PERMANENT DRAINAGE EASEMENT TO BE ACQUIRED 13,676 SQ. FT. 0.314 ACRES," as shown on the aforesaid plat. TOGETHER WITH the permanent utility easement for pominion Virginia Power designated and described as "PROPOSED PERMANENT UTILITY EASEMENT FOR DOMINION VIRGINIA POWER TO BE ACQUIRED 7,011 SQ. FT. OR 0.161 ACRE" and further designated and described as "PERMANENT UTILITY EASEMENT FOR DOMINION VIRGINIA POWER TO BE ACQUIRED 7,011 SQ. FT. 0.161 ACRES" as shown on the aforesaid plat. TOGETHER WITH those certain temporary construction easements designated and described as "TEMPORARY CONSTRUCTION EASEMENT TO BE ACQUIRED AREA 1= 10,059 SQ. FT. OR 0.231 ACRES," and "TEMPORARY CONSTRUCTION EASEMENT TO BE ACQUIRED AREA 2= 1,024 SQ. FT OR 0.024 ACRES," and further designated and described as "TEMPORARY CONSTRUCTION EASEMENT TO BE ACQUIRED AREA 1 10,059 SQ. FT. 0.231 ACRES," and "TEMPORARY CONSTRUCTION EASEMENT TO BE ACQUIRED AREA 2 1,024 SQ. FT. 0.024 ACRES," as shown on the aforesaid plat, for construction cut and/or fill slopes as required for the proper execution and maintenance of work. Said temporary rights and easements will terminate when there no longer exists the necessity for maintenance or until such time as all construction has terminated and the Grantee accepts the work as being completed. IT BEING a portion of the same property conveyed to Clearfield Real Estate Holdings, LLC, a Virginia limited liability company, by Deed from Coxcom, Inc. dated January 7, 2011 and recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia as Instrument Number 201101120000047740. IT FURTHER BEING a portion of the same property conveyed to Clearfield Real Estate Holdings, LLC, a Virginia limited liability company, by Deed from Virginia Electric and Power Company dated April 25, 2011 and recorded in the aforesaid Clerk's Office as Instrument Number 20110519000505380. Citv Remnant (GPIN 1467-55-3559): ALL THAT certain lot, piece or parcel of land, together with the improvements thereon, belonging, situate and being in the City of Virginia Beach, Virginia and being designated and described as "ADDITIONAL PROPERTY TO BE ACQUIRED AREA = 24,437 SQ. FT. OR 0.561 ACRES" and further designated and described as "ADDITIONAL PROPERTY TO BE ACQUIRED 24,437 SQ. FT. 0.561 ACRES," on that certain exhibit plat entitled, "AMENDED PLAT SHOWING PROPERTY AND EASEMENT TO BE ACQUIRED FROM THE RUNNYMEDE CORPORATION BY THE CITY OF VIRGINIA BEACH FOR GREENWICH ROAD OVERPASS CIP #2-401 VIRGINIA BEACH, VIRGINIA," Scale: 1"=50', dated March 18, 2010 and revised through 02/04/2013, recorded as Instrument #20130315000307440 in the Office of the Clerk of the Circuit Court of the City of Virginia Beach, Virginia. RESERVING UNTO THE CITY that certain variable width permanent public utility easement described as "20' AND VARIABLE WIDTH PERMANENT PUBLIC UTILITY EASEMENT HEREBY ESTABLISHED AREA = 18,468 S.F. / 0.424 ACRE," as shown on that certain plat entitled, "PLAT SHOWING 20' AND VARIABLE WIDTH PERMANENT PUBLIC UTILITY EASEMENT AND 10.24' TEMPORARY CONSTRUCTION EASEMENT HEREBY ESTABLISHED ON PROPERTY CITY OF VIRGINIA BEACH, VIRGINIA FOR STUMPY LAKE RAW WATER MAIN RELOCATION CIP #5.089 & CIP #2.401 VIRGINIA BEACH, VIRGINIA," Scale: 1" = 40', dated October 5, 2011 and revised through October 11, 2011, which plat was recorded in the aforesaid Clerk's Office as Instrument Number 20120117000052580. RESERVING UNTO THE CITY a temporary construction easement along the entire parcel as shown on the aforesaid plat, for construction cut and/or fill slopes as required for the proper execution and maintenance of work. Said temporary right and easement will terminate when there no longer exists the necessity for maintenance or until such time as all construction has terminated and the City accepts the work as being completed. EXHIBIT B SUMMARY OF TERMS EXCHANGE OF 24,437 SQ. FT. (0.561 ACRE) CITY PROPERTY FOR 26,686 SQ. FT. (0.613 ACRES) OF PROPERTY AND 30,746 SQ. FT. (0.706 ACRES) OF EASEMENTS OWNED BY CLEARFIELD REAL ESTATE HOLDINGS, LLC NEEDED FOR THE GREENWICH ROAD/CLEVELAND STREET CROSSOVER PROJECT, CIP 2-401 PARTIES: City of Virginia Beach ("City") Clearfield Real Estate Holdings, LLC, a Virginia limited liability company ("Clearfield") CITY PROPERTY TO BE EXCHANGED: 24,437 Sq. Ft. (0.561 Acre) of City property ("City Remnant"), GPIN: 1467-55-3559, located adjacent to 225 Clearfield Avenue ADDITIONAL MONETARY COMPENSATION: City will pay $362,947.50 ($10/sq. ft. for right-of-way, $5/sq. ft. for permanent easements and $2.50/sq. ft. for temporary easements) to Clearfield in addition to Exchange CLEARFIELD PROPERTY TO BE ACQUIRED BY CITY FOR ROAD PROJECT: 26,686 Sq. Ft. (0.613 Acres) for right-of-way and 20,687 Sq. Ft. (0.475 Acres) for utility and drainage easements, and 10,059 Sq. Ft. (0.231 Acres) for temporary construction easements from property owned by ClearField, GPIN 1467- 55-8570, ("ClearField Property") CONDITIONS OF SALE The City and Clearfield will each bear their own closing costs. At closing ClearField will transfer the ClearField Property to the City, free and clear of all liens and encumbrances, and the City will transfer the City Remnant to Clearfield, reserving to the City all necessary easements for the Project. . Clearfield will accept the City Remnant, $362,947.50 and Parking Lot improvements (defined below) as total just compensation for the Clearfield Property and damages to the residue, if any. . The City will construct a box culvert, within the City's existing drainage easement on the City Remnant. . City will make improvements to the City Remnant for Clearfield to use as a parking lot (the "Parking Lot Improvements") to mitigate Clearfield's loss of parking due to the Project. • City will enter into a Possession Agreement with Clearfield to allow Clearfield temporary use of the Clearfield Property prior to the completion of construction of the parking lot on the City Remnant. City will have the right to terminate such Possession Agreement upon 30 days' notice to Clearfield. ? r 1 r , ? LL. ? f J (crj LA- CO ?mw . r; 4m °-c?OV ? - _ ? f/1 t- _ CL w co ? r, aO 41 1t9 -'"'--'--_--- + 'E U? , . ....r , i ? o(O f ? 1 - ; ? . i ; t ? ? f 1 .?.. . ? .?.. , ; , . . ? c?0 r f c W) E C? t / ? • .....? ?. . ' ?.. +, J I' f" ., n -?"?^w --?-..,;,. .. ... . ?m} U J v/ z ? ?oa? ° ? 'a W o'n0 m s? Z? Z? O U) I? W?w 40 N Q _Jra'e? Us?Zu. Z 4w 0 o ?? ? ? ` T F W U Q 1J. Q J Ca % h / P E ? a 0 ,R.. O c ? ? rn ? ? W N C _ = a ?, -46- Item -V-K.4b ORDINANCES/RESOL UTIONS ITEM #63532 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinances to DECLARE properry in EXCESS of the City's needs and AUTHORIZE the City Manager to: b. SELL property at 219 North Oceana Boulevard to William R. and Jill S. Gurley (BEACH -DISTRICT 6) Voting: 11-0 Council Members Poting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE DECLARING THE 2 PROPERTY LOCATED AT 219 N OCEANA 3 BOULEVARD (GPIN 2417-05-5236) TO BE IN 4 EXCESS OF THE CITY'S NEEDS AND 5 AUTHORIZING THE CITY MANAGER TO 6 SELL THE PROPERTY TO WILLIAM R. AND 7 JILL S. GURLEY s 9 WHEREAS, the City of Virginia Beach (the "City") is the owner of that lo certain 5,914 sq. ft. parcel of land located at 219 N. Oceana Boulevard (the "Property") 11 more particularly described on Exhibit "A" attached hereto and made a part hereof; 12 13 WHEREAS, the City acquired the Property pursuant to the APZ-1 14 Acquisition Program; 15 16 WHEREAS, the City funded the acquisition of the Property through a 17 partnership with the Commonwealth of Virginia (the "Commonwealth"), with each party ls contributing fifty percent (50%) of the funds; 19 20 WHEREAS, the Property is in the midst of other residences and at the 21 time of acquisition was improved with a single-family home that has since been 22 demolished; 23 24 WHEREAS, William R. and Jill S. Gurley (the "Gurleys") own the adjacent 25 properties at 225 and 231 N. Oceana Boulevard and they have requested to purchase 26 the Property in order to utilize it in a manner compatible with the APZ-1 Ordinance; 27 28 WHEREAS, the Gurleys desire to purchase the Property in accordance 29 with the Summary of Terms attached hereto as Exhibit "B" and made a part hereof; 30 31 WHEREAS, the APZ-1 Disposition Committee has recommended that City 32 Council declare the Property to be in excess of the City's needs and sell the Property to 33 the Gurleys; and 34 35 WHEREAS, the City Council is of the opinion that the property is in excess 36 of the needs of the City of Virginia Beach. 37 38 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY 39 OF VIRGINIA BEACH, VIRGINIA: 40 41 That the Property located at 219 N. Oceana Boulevard is hereby 42 declared to be in excess of the needs of the City of Virginia Beach and that the City 43 Manager is hereby authorized to execute any documents necessary to convey the 44 Property to William R. and Jill S. Gurley in accordance with the Summary of Terms 45 attached hereto as Exhibit "B" and such other terms, conditions or modifications as 46 may be acceptable to the City Manager and in a form deemed satisfactory by the City 47 Attorney. 48 4 9 Further, that revenue from the sale of the Property in the amount of 5 0 $5,914 shall be received and fifty (50) percent of this amount shall be appropriated to 51 CIP #9-060, Oceana Interfacility Traffic Area Conformity & Acquisition, and fifty (50) 52 percent shall be deposited for future payment by the City Manager to refund the 53 Commonwealth's portion in accordance with the grant agreement. A manual 54 encumbrance will be established to ensure that the $2,957 retained by the City will be 55 available for BRAC program acquisitions in future years per the agreement with the 56 Commonwealth. 57 58 This ordinance shall be effective from the date of its adoption. 59 60 2 5 t h Adopted by the Council of the City of Virginia Beach, Virginia, on the 61 day of February , 2014. CA12771 R-1 2/10/14 \\vbgov.com\dfs1 \applications\citylawprod\cycom 32\wpdocs\d028\p019\00107693.doc APPROVED AS TO CONTENT 410 b I ic W o r k s VED AS T CONTE Management Services APPROVED AS TO LEGAL SUFFICIENCY Cit? qCttc?rney's;!Office !j ?./ ? EXHIBIT "A" GPIN 2417-05-5236 (219 N. Oceana Boulevard) ALL THAT certain lot, piece or parcel of land, lying, situate and being in the City of Virginia Beach, Virginia, known, numbered and designated as Lot 53A, as shown on that certain plat - entitled, "RESUBDIVISION PLAT OF LOT 53 AND 54 HILLCREST (M.B. 13, PG. 8) VIRGINIA BEACH, VA.," Scale: 1" = 25', dated October 9, 2002, which said plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia as instrument number 200211193066700. RESERVING UNTO THE CITY all right, title and interest of the City in and to any and all easements, rights of way, private roads and other rights of access, ingress and/or egress adjacent to, appurtenant to or in any way benefiting the above- described property. IT BEING the same property conveyed to the City of Virginia Beach, a municipal corporation, by deed dated December 14, 2012 from Robert L. Baer and Filomena Baer, husband and wife, recorded in aforesaid Clerk's Office as Instrument Number 20121221001458860. EXHIBIT "B" SUMMARY OF TERMS SALE OF EXCESS PROPERTY LOCATED AT 219 N. OCEANA BOULEVARD Seller: City of Virginia Beach Buyers: William R. and Jill S. Gurley, husband and wife Property: 219 N. Oceana Boulevard (GPIN: 2417-05-5236) consisting of 5,914 square feet of vacant land. Legal Description: See Exhibit "A" to Ordinance Sale Price: $5,914 CONDITIONS OF SALE: • Property is purchased "As Is, Where Is." • Buyers have been advised of APZ-1 restrictions for use. • Buyers may use the Property for accessory structures, or Buyers may otherwise utilize the property for construction in conjunction with their adjacent property upon resubdivision to remove interior lot lines; however, Buyers may not add any new dwelling units. • Seller shall resubdivide the Property at its expense to vacate interior lot lines to incorporate the Property with Buyers' adjacent lots. • Seller will record deed restrictions permanently preventing new dwelling units prior to or simultaneous with conveyance. • Seller will reserve any fee in the streets and any easements necessary for public purposes. L'a z ? 3 g d d ? c!) . > ? > > N ? 1 v O E o Z Z ?1= N ?= m Q ? N Q . NI NNJl13S02i RD S > ? W ? ? `dN`d?100 N 0 NI 3laalW v X J 0 N ? ? W m Q LL ? ? W t? N ? ? Q ? ? J N ? ? 9 ? ZWOm? Z ?OLLIZr' o ` Qw Q Q N a ? O a Gt W .?Z ° ? J~aZc? a ? ? U) ~ r W N o Z U X g W N ? L. 4) c O ? d ? ca V a ? ? V 0 O 0 y , m ? m V 0 ' co H ? 0 h (D ? ? Nni r O ? n r N fl n O O . ? L a i a - p N W v a a.o ?'Z C ? V r U U Q sN a ? , 0 0 ? ? ? ?` a O a Z 'r a -ld M012N8 J -47- Item -V-K.S ORDINANCES/RESOL UTIONS ITEM #63533 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE dedication of an easement to Virginia Electric and Power Company (VEPCO) at the intersection of Winston Place and East Stratford Road Yoting: 10-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad MaYtin, Amelia N. Ross-Hammond, 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.• John D. Moss February 25, 2014 1 AN ORDINANCE AUTHORIZING THE DEDICATION 2 OF AN EASEMENT TO VIRGINIA ELECTRIC AND 3 POWER COMPANY OVER 4,395+/- SQ. FT. OF 4 CITY-OWNED PROPERTY LOCATED ADJACENT 5 TO WINSTON PLACE 6 7 WHEREAS, the City of Virginia Beach (the "City") owns a parcel of land 8 located at the intersection of Winston Place and E. Stratford Road (GPIN: 1489- 9 58-0146) (the "Property"); 10 11 WHEREAS, Dominion Virginia Power, a/k/a Virginia Electric and Power 12 Company ("VEPCO"), has requested that the City dedicate a 4,395+/- sq. ft. 13 easement over a portion of the Property, as shown on Exhibit A attached hereto 14 (the "Easement"); and 15 16 WHEREAS, the Easement would be for the purpose of installing and 17 maintaining transformers and underground cables, and would provide electric 18 service to the Brock Environmental Center located at Pleasure House Point. 19 20 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE 21 CITY OF VIRGINIA BEACH, VIRGINIA: 22 23 That the City Manager is hereby authorized to execute any documents 24 necessary to dedicate an easement to VEPCO over City-owned property, as 25 shown on the plat attached hereto as Exhibit A, and made a part hereof, and 26 such other terms, conditions and modifications as may be acceptable to the City 27 Manager and in a form deemed satisfactory by the City Attorney. 28 29 Adopted by the Council of the City of Virginia Beach, Virginia on the 25th 30 day of Februarv , 2014. THIS ORDINANCE REQUIRES AN AFFIRMATIVE VOTE OF THREE- FOURTHS OF ALL COUNCIL MEMBERS ELECTED TO COUNCIL. APPROVED AS TO LEGAL SUFFICIENCY L ?C_(ct..?j?. C`i(111A?t u, City Attorney APPROVED AS?T9ZONTENT Parks--K Recreation CA12782 \\vbgov.com\DFS1 Wpplications\CityLawProd\cycom32\W pdocs\D012\P017\00110272.DOC R-1 February 14, 2014 EXHIBIT A 00 9? E O m N i F ? I ? z m A r Z N N Z Z Z N Z Z Z m O O O A ? O J i O 4 i O ? P -I p J ONi m ?" f E ? F m m ? ? n 2 D O 70 La (??a O N N O -N i ? y n z c ? <? ? ? ? ? c? n N m ? o ? ? u 0 O 0 O 0 (T ?' O o OO N 0 U y 0 O ° ? W o w , iO .zl o ? N O r O? W W ? W C - w z m c> m O ? n ? - A J' U ? W ? ? O Z D 6) O ci W ? A C? m t0 W ? U ? W ? Z i I = ? Z Z Z ? A Z N Z Z N N O o N p o W ? ?p 'q V > j > O v ? ? ? ? ? m m m o z x O r O ? ?o ? N Z n y 2 V?? 'O o ?6? j0?y ?Q y v ?? ld?• ?" z ? o \f A Z ?,p WUD / ?? LT t ??;., a\ \/y J S . . ? S/ . . ? ? . ? ? . . . . . . . . . . . . ..... ?K? . . . . . .?? . ^ \ ? 60?. .. ? r ? ? ? ? a 3 ? ? / .? ? 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Z m m Q ? O f <o z o4ms A 9 O C O £ O ~ po A ? ? b 0 V ? n m ? Z+ - f'l ? ? io ? ?AD N2'? n0 O i ? ? ? .().'ii p ? .p D 0 VI 0 ? A aD ?zo r r z ? a D < yj ?m xO Z I c? V1M Zmy J c? n n m m I m or p?m ? A A?o ? p? mKti n o- ? ? m K 0 A < O n m n x :1 G ??4?} O? , OUR NA10? ? JOHN MOSS COUNCILMAN - AT-LARGE In Reply Refer to 0051329 February 25, 2014 Mrs. Ruth Hodges Fraser, MMC City Clerk MLmicipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Conflict oF Interests Act § 2.2-3115 (F) Dear Mrs. l?raser: VBgov.com PHONE: (757) 363-7745 MOSSJOHN@COX.NET Pursuant to the State and Local Government Conflict of Interests Act, I make the following declaration: I am executing this written disclosurc regarding City Council's discussion and votc on An Ordinance Authorizing the lledication of an Easement to Virginia Electric and Power Company over 4,395A-/- Sq. Ft. of City-Owned Yroperty Located Adjacent to Winston Place. 2. I have a personal interest in llominion Resources, Inc., which is also known as Virginia Electric and Power Company. Its corporate street address is 120 Tredegar Street, Richmond, Virginia 23219. 3. I wish to disclose this interest and abstain from voting on this matter. Accordingly, I respectfully request that you record this declaration in the official records of City Council. C ity of Virginia Beach 4109 RICHARDSON ROAD, VIRGINIA BEACH, VIRGINIA 23455 Mrs. Ruth Hodges Fraser -2- Fcbruary 25, 2014 Re: Abstention Pursuant to Conflict of Interests nct § 2.2-3115 (F) 1'hank you for your assistance and cooperation ii7 tliis matter. ? I ohn ll. Moss Councilmcmbcr JDM/RRI -48- Item -V-K.6a ORDINANCES/RESOL UTIONS ITEM #63534 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the City Manager to EXECUTE: a. a Lease with 23 Atlantic LLC at 2401 Atlantic Avenue Voting: 11-0 Council Members Tjoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LEASE OF UP TO 3 FORTY (40) YEARS WITH 23 ATLANTIC, LLC 4 FOR CITY-OWNED PROPERTY LOCATED AT 5 2401 ATLANTIC AVENUE FOR THE PURPOSE 6 OF MAINTAINING CONCRETE PILES AND 7 PILE CAPS FOR THE BENEFIT OF THE 8 ADJACENT BUILDING 9 10 WHEREAS, the City of Virginia Beach (the "City") owns property located at 2401 11 Atlantic Avenue (GPIN 2427-19-4622)(the "Property"); and 12 13 WHEREAS, 23 Atlantic, LLC ("23 Atlantic") desires to enter into a lease with the City 14 for a term of up to forty (40) years, for the purpose of maintaining concrete piles and pile 15 caps along the southern boundary of the Property (the "Premises") for the benefit of the 16 adjacent building, currently the Comfort Inn. 17 18 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 19 VIRGINIA BEACH, VIRGINIA: 20 21 That the City Manager is hereby authorized to execute a lease for the Premises for 22 a term of up to forty (40) years, between 23 Atlantic, LLC and the City of Virginia Beach, as 23 shown on the plan attached hereto as Exhibit A and made a part of this Ordinance, and in 24 accordance with the Summary of Terms attached hereto as Exhibit B and made a part of 25 this Ordinance, and such otherterms, conditions or modifications as may be acceptable to 26 the City Manager and in a form deemed satisfactory by the City Attorney. 27 28 Adopted by the Council of the City of Virginia Beach, Virginia, on the 2 5 t h day of 29 February , 2014. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Public W rks / Fa ities City Attorney Management CA12756 \\vbgov.com\DFS1 Wpplications\CityLawProd\cycom32\Wpdocs\D011\P017\00109940.DOC R-1 February 13, 2014 ? •?,t. ?. .! ? ._ ; i ? , 7ZCl?aCDT?i7 ? 4-soc+r rx.rx? ? ro ?ry "lt Cr? pw.y ? . I ? c C •: ? ? I % I ? t - . " Cs•+?. ?rr• ?' P+z? ?'S G.oo' - ['?..°ta+f !'t?!. 1e?C ' . . -? ; ' Co?lc.?aor - ?. • - 1 ? . . • F1Lf C?aS ?, aa' ? ? ? Q' ok?ras?uf ?'" ?T-EAC3! tate c?p P ? ? ?•? ? Q, . ---+. A ? t , . ? ' ? • i ? Ptle Cbcbto L05 ' ;o _ra??+?t-t 2e` 5-acej . ? : f?:- ? ?o?+ rt?.cxn? ,- ; • V4126Iti11b Ud . . . ,..? ? ?.• . -?.ri.a?ic_?,v . ? ---? . No7f: R?ou«-n Cofi -- Na i T Scl+cE ZvNC.&:rE Poc.ES 4WD Pitc cAP E?o.4c;Hr'iwvr t?Jra . 2?' 37'?eT ; . . . i ?Si!. /-'-'-'.1'??LG? C?? rt: t,???.; ?.?'(??•?: ? rf !.•'.• ?:s?.'r Cunt cf 1ir?7r.!1 P_pib...i.,r.'?l ?} , .._.. . .-r, .... ????.?. _, • ;.. _'rn.:s,. ?.?r?.:r?:;rr.. - .................. Ikt?r- ?wwM?tMAC ? .? -- t ; , 1 . EXHIBIT B SUMMARY OF TERMS LEASE OF CITY-OWNED PROPERTY TO 23 ATLANTIC, LLC LESSOR: City of Virginia Beach (the "City") LESSEE: 23 Atlantic, LLC ("23 Atlantic") PREMISES: Southern portion of 2401 Atlantic Avenue, GPIN: 2427-19-4622 TERM: Up to forty (40) years RENT: Rent shall be one dollar ($1.00) per year RIGHTS AND RESPONSIBILITIES OF 23 ATLANTIC, LLC (LESSEE): • Keep, repair, and maintain the Premises in a workmanlike manner at its sole expense. Maintain commercial general liability insurance coverage with policy limits of not less than one million dollars ($1,000,000) combined single limits per occurrence, issued by an insurance company licensed to conduct the business of insurance in Virginia. Such insurance shall name the City of Virginia Beach as an additional insured. Lessee shall provide a certificate evidencing the existence of such insurance. • Assume the entire responsibility and liability for any and all damages to persons or property caused by any act or omission of the Lessee or its agents, etc. associated with the use of the Premises. • Pay any real estate leasehold taxes assessed on the Premises pursuant to § 58.1- 3203 of the Code of Virginia, or any successor statute. RIGHTS AND RESPONSIBILITIES OF THE CITY (LESSOR): • The City will have no ongoing responsibilities on the Premises during the term of the Lease. TERMINATION: • Either party may terminate the lease upon thirty (30) days' advance written notice to the other party. \\vbgov. com\DFS I\App I ications\C ity LawProd\cycom32\ W pdocs\D01 I\P017\00109941. DOC -49- Item -V-K.6b ORDINANCES/RESOL LITIONS ITEM #63535 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the Ciry Manager to EXECUTE: b. a Lease with Vetshouse, Incorporated at 1508 Ohio Avenue Yoting: 11-0 Council Members Voting Aye: Robert M. Dyer, BaYbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad MaYtin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE AUTH4RIZING THE CITY 2 MANAGER TO EXECUTE A LEASE FOR FIVE 3 YEARS OR LESS W1TH VETSHOUSE, q. INCORPORATED FOR THE USE OF LAND AND A 5 2,024 SQUARE FOOT (APPRUX.) CITY-OWNED 6 RESIDENCE LOCATED AT 1508 OHIO AVENUE. . 7 8 WHEREAS, the City of Virginia Beach (the "City? is the owner of that 9 certain parcel of land and 2,424 square foot (approx..) residence located at 1508 10 Ohio Avenue and further described on Exhibit A aitached hereto (the "Property"); 11 12 WHEREAS, Vetshouse, lncorporated ("Vetshouse") has proposed leasing 13 tfis Property in order to provide transitional housing and life skills training for 14 homeless female veterans; 15 16 WHEREAS, Vetshouse has proposed to lease the Property for $300.00 17 per year; 18 19 WHEREAS, Vetshouse will perform a!I required renovations ta ensure that 20 the Property is compliant with City Codes and fully noise attenuated, and 21 Vetshouse wili perfarm all required maintenance during the term of the lease; 22 23 WHEREAS, the City funcfed the acquisition of the Property through a 24 pactnership wi#h the Commonwealth of Virginia (the "Commonwealth") with each 25 party contributing fifty percent (50%) of the funds; 26 27 WHEREAS, Vetshouse would like to enter into a formal lease agreement 28 with the City for the Property in accordance with the Summary of Terms attached 29 hereto as Exhibit B and made a part hereof; and 30 31 THEREFORE, BE IT ORDAINED Bl' THE CITY COUNCIL OF THE CITY 32 OF VIRGINIA BEACH, VIRGINIA: 33 34 That the City Manager is hereby authorized to execute a lease for a term 35 of five years or less, between Vetshouse, Incorporated and the City, for the 36 Property in accordance with the Summary of Terms attached hereto and made a 37 part hereof, and such ather terms, conditions or modifications as may be 38 acceptable to the City Manager and in a form deemed satisfactory by the City 39 Attorriey. 40 41 Further, that the revenue from the lease of the Property in the amount of 42 $300/year shall be received and fifty (50) percent of this amount shall be 43 appropriated to CIP #9-060, Oceana (nterfacility Traffic Area Conformity and 44 Acquisition, and fifty (50) percent shall be deposited for future payment by the 45 City Manager to refund the Cammanwealth's portion in accordance with the grant 46 agreement. A manual encumbrance will be established to ensure that the 47 $150/year retained by the City will be available for BRAC program acquisitions in 48 future years per the agreement with the Commonwealth. 49 25th 50 Adopted by the Council of the City of Virginia Beach, Virginia on the 51 day ofi February,2014. APPROVED AS TO LEGAL SUFFICIENCY AND FORM , City rney APPROVED AS TO CONTENT PW/Facilitie anageme t APPROVED AS TO CONTENT Management Services ? CA12765 1/28/14 R-1 \lvbgov.com\dfs l?applicationslcitylawprodlcycom32\wpdocs\dOl1\p017100101004.doc EXHIBIT "A" ALL THAT certain lot, piece or parcel of tand, with the buildings and improvements thereon, situate, lying and being in the City of Virginia Beach, Virginia and being known numbered and designated as Lot 42A, as shown on that certain plat entitled, "Resubdivision of Property of Lots 42 and 43, HILLCREST," which said plat is duly recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Map Book 253, at page 83 and 84. IT BEING the same property conveyed to the City of Virginia Beach by Deed dated September 18, 2012 from John Galliford Williamson a/k/a John Phillip Galliford Williamson and Lana Jean Williamson, husband and wife, recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia as Instrument Number 20120927001120160. EXHIBIT B SUMMARY OF TERMS LESSOR: City of Virginia Beach LESSEE: Vetshouse, Incorporated PREMISES: 1508 Ohio Avenue (2,024 square foot residence and 6,250 sq. ft. lot associated therewith). TERM: February 1, 2014, through January 31, 2015, with 4 one-year renewal options RENT: $300.00 per year RIGHTS AND RESPONSIBILITIES OF LESSEE: . Will use the Premises for a Vetshouse residential facility for female veterans and for no other purpose. . At no time shall more than 4 people reside in the dwelling unit. . Will sound-attenuate premises and perform all other renovations required for compliance with City codes at Lessee's expense. . Lessee shall not modify the Premises without prior approval from City. . Will keep, repair, and maintain the Premises at its expense. . Will maintain commercial general liability insurance coverage with policy limits of not less than one million dollars ($1,000,000) combined single limits per occurrence. Lessee shall provide a certificate evidencing the existence of such insurance. . Will comply with all applicable laws, ordinances, and regulations in the performance of its obligations under the Lease. TERMINATION: The City may terminate the Lease at any time without cause. ? Oi a? ? c a? Q 0 C- Q 00? u°) r j r4 i Q O Qs ? ? 0 c ? O w C O oL G1 R3 W +? Q J -j Q NI NNkl3soa ?,.... I -T-I T- ? _. ? .; ?- ? ? ? 0 ? ? ? ? 0 ? p ? ? -50- Item -V-K.6c ORDINANCES/RESOL UTIONS ITEM #63536 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE the Ciry Manager to EXECUTE: c. a Lease with Sweet Enchantments Bakery, LLC at the Farmer's Market Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, BaYbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE AUTHORIZING THE CITY 2 MANAGER TO EXECUTE A LEASE FOR UP TO 3 3 YEARS WITH SWEET ENCHANTMENTS BAKERY, 4 LLC FOR CITY-OWNED PROPERTY KNOWN AS 5 SPACE #30 IN THE VIRGINIA BEACH FARMERS 6 MARKET 7 8 WHEREAS, the City of Virginia Beach (the "City") is the owner of the City of 9 Virginia Beach Farmers Market located at the corner of Princess Anne Road and Dam 10 Neck Road in Virginia Beach, Virginia (the "Farmers Market"); 11 12 WHEREAS, Sweet Enchantments Bakery, LLC ("Sweet Enchantments") would 13 like to enter into a lease with the City for Space #30 at the Farmers Market, consisting 14 of 250 square feet (the "Premises"); 15 16 WHEREAS, the Premises will be utilized for the sale of gluten-free, dairy-free, 17 organic baked goods and related items, and for no other purpose; and 18 19 WHEREAS, Sweet Enchantments has agreed to pay the City $250.00 per month 20 ($3,000 per year) for the use of the Premises for the duration of the lease term. 21 22 NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 23 OF VIRGINIA BEACH, VIRGINIA: 24 25 That the City Manager is hereby authorized to execute a lease for up to 3 years 26 between Sweet Enchantments and the City for the Premises, in accordance with the 27 Summary of Terms attached hereto, and such other terms, conditions or modifications 28 as may be acceptable to the City Manager and in a form deemed satisfactory by the 29 City Attorney. 30 31 Adopted by the Council of the City of Virginia Beach, Virginia on the 25thday of 32 February 2014. , APPROVED AS TO LEGAL APPROVED AS TO CONTENT SUFFICIENCY AND FORM , City Attorney Public Wo s/Faciliti Management CA12768 \\vbgov.com\DFS1 Wpplications\CityLawProd\cycom32\W pdocs\D008\P023\00104505.DOC R-1 January 13, 2014 SUMMARY OF TERMS LEASE FOR SPACE #30 AT THE VIRGINIA BEACH FARMERS MARKET LESSOR: City of Virginia Beach LESSEE: Sweet Enchantments Bakery, LLC PREMISES: Space #30, consisting of 250 sq. ft. TERM: Initial Term: February 1, 2014 - January 31, 2015 Option Term 1- February 1, 2015 - January 31, 2016 Option Term 2- February 1, 2016 - January 31, 2017 RENT: Rent of $250 per month ($3,000 per year) Rent shall be abated for the month of February 2014 allowing tenant time to make improvements. RIGHTS AND RESPONSIBILITIES OF LESSEE: • Use Premises for sale of gluten-free, dairy-free, organic baked goods and related items, and for no other purpose. . Maintain Premises, including heating and air conditioning units and/or heat pump units. • Payment of all assessed fees and taxes. • Purchase and maintain commercial general liability insurance. RIGHTS AND RESPONSIBILITIES OF CITY: • Maintain common areas of the Farmers Market and structural elements of the Premises. . Provide electrical service. TERMINATION: • City has special right to terminate if necessary for a public purpose by giving sixty (60) days' advance written notice. . Lessee may terminate by giving ninety (90) days' advance written notice. \\vbgov.com\DFS1 Wpplications\CityLawProd\cycom32\W pdocs\D008\P023\00104507.DOC LOCATIaN 1VIAP. `'?? ? 20 10? 13 20 ? 3 On n,? ? ? ? 20 ual Hertiage Ctr. uNIT 3 O 24 ' c?0 316 7 ? ? 17 ? 939 40 ?2q 960 24 16 3 47 3 I 17 ? _..? _._.. 401 24 ' so Picnic 30 g 2400, , 10 ? 0 29 8 6^ 7 20 1 a 30 / v 2 6 9 / 31 . 1090 ? 939 VIRGINIA BEACfl F,ARMERS . . MARKET 96Q (939 /24 ? '?. 38 1178 \\v 15 32n 40 35 45 8 9? --- 4 5 320 40 35 15 24\ /4 CO) ,960j ?--, 35 _.' 8? / '?,28 // Guard Nouse S? 42 sq. Ft. 24 35 -51- Item -V-K.7 ORDINANCES/RESOL UTIONS ITEM #63537 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to GRANT a Franchise Agreement re Pedal Cab operation in the Resort Area to Seven Cities Rickshaw, LLC Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 AN ORDINANCE GRANTING A FRANCHISE AGREEMENT FOR PEDAL CAB OPERATION IN THE RESORT AREA WHEREAS, the use of bicycles, surreys and other forms of pedal vehicies has become a popular, convenient and eco-friendly form of transportation in the Resort Area; and WHEREAS, many visitors and residents cannot take advantage of pedal vehicles due to age or health issues; and WHEREAS, public transportation is not available to many of the restaurants located on Rudee Inlet, and taxi service is slow due to traffic congestion; and WHEREAS, in 2009, Beach Pedal Cab Company was awarded a franchise agreement to operate a pedal cab service under a pilot program; and WHEREAS, Beach Pedal Cab Company could not generate enough revenue to continue operating beyond the pilot program, and the franchise agreement was terminated; and WHEREAS, in 2013, Seven Cities Rickshaws, LLC was awarded a franchise agreement, under a four-month pilot program, to operate pedal cab service in an expanded operating area, which included Atlantic Avenue; and WHEREAS, operating criteria were included in the franchise agreement to ensure public safety and to minimize conflict with other pedal vehicles; and WHEREAS, the 2013 pilot program was successful; and WHEREAS, City staff consulted with the Resort Advisory Commission ("RAC") regarding the 2013 pilot program and made minor changes to the franchise operating criteria; and WHEREAS, the RAC concluded that pedal cab operation is a sustainable business that should continue in the Resort Area, and it recommended awarding a new pedal cab franchise; and WHEREAS, the City issued an invitation to bid ("ITB") in December 2013 for a pedal cab franchise; and WHEREAS, the City received one bid in response to the ITB; and WHEREAS, the bid was received from Seven Cities Rickshaw, LLC; and 45 WHEREAS, the RAC and City staff recommend awarding a one-year pedal cab 46 franchise agreement, with the option for three additional one-year terms, to Seven Cities 47 Rickshaw, LLC. 48 49 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 50 VIRGINIA BEACH, VIRGINIA: 51 52 1. That the City Council hereby grants a franchise agreement for pedal cab 53 operation to Seven Cities Rickshaws, LLC. 54 55 2. That the City Manager, or designee, is hereby authorized to execute a 56 franchise agreement with Seven Cities Rickshaws, LLC in accordance with 57 the attached Summary of Terms and such other terms and conditions 58 deemed necessary and sufficient by the City Manager and in a form approved 59 by the City Attorney. Adopted by the Council of the City of Virginia Beach, Virginia on the 2 5 t h day of February , 2014. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: 12?? Strategic Growth Area Office ?-----?... A42nn,* I City Attorney's ffice CA12880 R-2 February 17, 2014 ,'?iil-n,11:11'6' E1t Yt'1-:1?5 Fi•anchise Agreeinent for Pcdal Cab Opei•ation in the Resort Area Franchisec: Seven Cities Ricl<shaws, L!_C Naturc of Franchise: Pedal Cab Opei•ation in the Resort nrca Tecm: March 1, 2014 through T'cbruary 28, 2015 Fcanchise Fee: $600 tor the term of thc franchise. Non-F',xclusive Franchise: 'l,he City is authocired to grant othci° f'ranchises in the stilbject area. A minimtim of 2 pedal cabs and a maxiinum of'10 pedal cabs shali be operatcd betwcen 10:00 am and 7:00 pm between Memorial Day and Laboi- Day. t)pcrational Criteria: 7,he Agreeinent stipulates operational standards and safcguards such as: a. Pedal cabs shall bc maintained in good working order and shall bc aesthctically plcasing. "l'hc City slial l approvc thc appc;irancc of't':lc pcdal cabs. b. Pcdal cabs shall have a proper workiilg hrai:ing inechanisnl. Yedal cabs sllall liave headlights and tail lights. c. Pedal cabs shall bc subject to the operationdl and equipment requiremcnts f, or bicycles set forth in Virginia Code Section 46.2-1015 and thc Code of the City, oi Virginia 13each Sections 7-50 through 7-6-;. d. Ycdal cabs shall be opcrated on ilie premiscs at a maximum speed of fivc (5) nnilr.s pcr nour. C. Pedal cabs shall display a`slow moving N?ehicle cmblcm" on thc rcar of thc vehicle during daylight hours. -1 battery powercd blinking liglit or othcr illuryiination devices shall be placed and uscd oll all pedal cabs at night. 'I'lie City sllall approve thc emblem, lights, and other illiunination dcvices. l: Ali pedestrians shall havc Lhc right of way and the Franchisec shall itlal<e every reasonable effort to protect the public's salety. g. Au pedal cab loading or unloacling, or se-Ltling of bills, sliall be donc on the boardwalk, the boardwalk bike path, sidewalks or travel portioi: of any roadway in the resort arca. Loading arid unloading plans shall require approval by the City. h. Pedal cab5 sliall be prohibitcd ii-om stagin() iii travel portions of r,uhlic sti-ccts aud sidewalks. Staging areas for pedal cabs sh?dl bc in non-travel portions ol' public strects, connectoi• parks, ai1d in s?rects en the one liundred blocks, V,'here public acccss is availablc. i. }'edal cab operalors are nol requii-ed to bc cmployed by Franchisec, however violations of any operating criteria of the franchise by a pedal cab operator nlay result in termination of the francn;sc. j. Yedal cab operators shnll carry on their pc!-son, at all times during the operation of a pedal cab, a copyo uf thc opco!-atioriai critcria ::ontain in the agreement. k. Pedal cab cperators must be present with passengers at all timcs during the pedal cab service. 1. F'ranchisee shall providc to each of its ennployees attire which appropriately identiFies the pedal cab ride operatiurl. SLich attire shall be approved by the SUA Resort Management (Jffice. "1'hc approved ariirc must be worn by on-duty employees during all hours of operaiioil. All outcr wear shall have at ]east a name tag with the Franchisee's ofiicial log,o oi- company naine. M. Persons operating pedal cabs shall not sell, solicit, offcr, distribute, or provide any information, written or oral, regarding any operation or service in connection with time shares, vacation packages, lodging aceommodations, hotels, motcls, inns, campgi°ounds, restaurants, retail stores or entertainment establishments. n. No advertisements, other than the name of Franchisee, and the fee for thc use and the location of the pedal cab service, shall be placed or maintained by the Franchisee on the outside of the pedal cab. Advertising material, approvcd by thc SGAO, may be placed on the inside of the pedal cab so tllat it is visible to the pedal cab passengers only. o. Persons operating pedal cabs are prohibited from constuning alcohol and ITOm using earphones while operating a pedal cab. p. Any changes in the operational criteria shall rcquire prior written approval of the Gity. Hold liarniless: Franchisee indemnifies and holds hai•mless tlle City Cor loss and liability. Insurance: $2,000,000 coinbined singlc limits. Tcrinination: City may tcrminate agrec.ment (or cause. -52- Iteni -K.8 ORDINANCES/RESOL UTIDNS ITEM #63538 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Resolution to AUTHORIZE a Policy on the display of banners on pedestrian bridges in Central Business Core District at Town Center Yoting.• 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 2 A RESOLUTION TO ADOPT A POLICY 3 REGARDING THE DISPLAY OF BANNERS ON 4 PEDESTRIAN BRIDGES IN THE CENTRAL 5 BUSINESS CORE DISTRICT 6 7 8 WHEREAS, banners hung from the pedestrian bridge over Columbus Street 9 have traditionally been allowed to be displayed in connection with events at the Sandler 10 Center, Ynot Wednesdays and elsewhere within the Town Center area; and 11 12 WHEREAS, such banners provide an effective means of generating interest in 13 cultural events and entertainment in Town Center and in providing information to 14 residents, visitors and those who work in the area regarding the time, place and nature 15 of such events and entertainment; and 16 17 WHEREAS, the current policy governing the display of banners from pedestrian 18 bridges has heretofore been informal in nature; and 19 20 WHEREAS, in order to formalize the current policy regarding the display of 21 banners on the pedestrian bridge over Columbus Street and any similar structures that 22 may be constructed in the future; 23 24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 25 OF VIRGINIA BEACH: 26 27 1. That the "Pedestrian Bridge Banner Policy, Central Business District," 28 dated December 2013, a true copy of which is hereto attached and is on 29 file in the office of the Senior Project Development Manager of the 30 Department of Economic Development, is hereby adopted; and 31 32 2. The City Manager and his designee are hereby authorized to administer 33 and enforce the provisions of the aforesaid Policy. 34 35 Adopted by the City Council of the City of Virginia Beach on the 2 5 t h day 36 of February 20 14 37 38 39 40 41 APPROVED AS TO CONTENT: 42 43 44 45 Dept. of Economic Development 46 47 CA-12703 48 October 23, 2013 49 R-1 APPROVED AS TO LEGAL Y: , ' /V- /City Attorney's Office 2 PEDESTRIAN BRIDGE BANNER POLICY CENTRAL BUSINESS CORE DISTRICT December, 2013 Banners hung from the pedestrian bridge over Columbus Street have traditionally been allowed to be displayed in connection with events at the Sandler Center Plaza, Fountain Plaza and eisewhere within the Town Center area. Such banners provide an effective means of generating interest in cultural events and entertainment in Town Center and in providing information to residents, visitors and those who work in the area regarding the time, place and nature of such events and entertainment. To date, however, no formal policy governing the display of banners from pedestrian bridges has been in effect. This policy is intended to establish a formal policy regarding the display of banners on pedestrian bridges over City streets in the Central Business Core District. It does not apply to banners allowed by applicable sign regulations set forth in Article 2 or Article 22 of the City Zoning Ordinance. 1. Banners shall be allowed only for the purposes of promoting special events, events at major entertainment venues and similar activities held within the CBC Central Business Core District. There shall be no more than one (1) banner on each side of the pedestrian bridge at any time. 2. Information displayed on banners shall be limited to the name, date/time, location of the event and the logo of the sponsor(s) of the event. No additional commercial advertising shall be displayed. 3. Banners shall not exceed six feet by forty-six feet (6' x 46) in size. Lettering shall no less than six inches (6") high. 4. Banners shall be displayed for no longer than fourteen (14) days prior to an event unless a longer period of time is approved by the Senior Project Development Manager of the Department of Economic Development in the case of an event that regularly recurs on a weekly or more frequent basis or for other good cause shown. Banners shall be removed within two (2) business days after the conclusion of the event. 5. If necessary by reason of conflicting event schedules, banners shall be allowed in the following priority: (1) Town Center Program Events; (2) Sandler Center Events; and (3) Other qualifying events Approved: Date: City Manager or Designee -53- Item -V-K.9a/b ORDINANCES/RESOL UTIONS ITEM #63539 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, INVESTMENT OF CITY FUNDS: a. Resolution re a REVISED Policy and the Treasurer DIRECTED to use the Policy for the invest`nent of City funds b. Ordinance to AUTHORIZE the VACO/ijML Virginia Investment Pool Trust Fund to invest certain City funds within the City Treasurer's contr°ol Poting: 10-0 Council Members VotingAye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay. None Council Members Absent: None Council Members Abstaining: Mayor William D. Sessoms, Jr. February 25, 2014 1 A RESOLUTION ADOPTING A REVISED 2 POLICY FOR THE INVESTMENT OF CITY 3 FUNDS 4 5 WHEREAS, the City Council adopted a policy for the investment of City funds on 6 May 28, 1996, and this policy was most voted upon by Council in 2005; and 7 8 WHEREAS, the purpose of the policy is to provide for the prudent investment of 9 City funds; and 10 11 WHEREAS, the City Treasurer, as custodian of City funds pursuant to section 12 8.03 of the City Charter, is responsible for the investment of City funds; and 13 14 WHEREAS, it is important that the City funds be invested in accordance with the 15 Code of Virginia and prudent fiduciary standards; and 16 17 WHEREAS, the City Treasurer has recommended the adoption of the attached 18 revised Investment Policy. 19 20 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 21 VIRGINIA BEACH, VIRGINIA: 22 23 That the attached City of Virginia Beach Investment Policy is hereby adopted, 24 and the Treasurer is hereby directed to use the Investment Policy for the investment of 25 the City's funds. Adopted by the Council of the City of Virginia Beach, Virginia, on the 2 5 t h day Of February , 2014. AP R VED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: City teas rer ?'rn6's dffice CA12866 R-1 December 17, 2013 1 AN ORDINANCE TO ADOPT THE VACO/VML VIRGINIA 2 INVESTMENT POOL TRUST FUND FOR THE 3 PURPOSE OF INVESTING CERTAIN CITY FUNDS 4 WITHIN THE CITY TREASURER'S CONTROL 5 6 WHEREAS, Section 15.2-1500 of the Virginia Code provides, in part, that every 7 locality shall provide for all the governmental functions of the locality, including, without 8 limitation, the organization of all departments, offices, boards, commissions and 9 agencies of government, and the organizational structure thereof, which are necessary 10 to carry out the functions of government; and 11 12 WHEREAS, Section 2.2-4501 of the Virginia Code provides that all municipal 13 corporations and other political subdivisions may invest any and all moneys belonging 14 to them or within their control, other than sinking funds, in certain authorized 15 investments; and 16 17 WHEREAS, Section 15.2-1300 of the Virginia Code provides that any power, 18 privilege or authority exercised or capable of exercise by any political subdivision of the 19 Commonwealth of Virginia may be exercised and enjoyed jointly with any other political 20 subdivision of the Commonwealth having a similar power, privilege or authority pursuant 21 to agreements with one another for joint action pursuant to the provisions of that 22 section; and 23 24 WHEREAS, any two or more political subdivisions may enter into agreements 25 with one another for joint action pursuant to the provisions of Section 15.2-1300 of the 26 Virginia Code provided that the participating political subdivisions shall approve such 27 agreement before the agreement may enter into force; and 28 29 WHEREAS, the City of Chesapeake, Virginia and the City of Roanoke, Virginia 30 have determined to jointly establish and participate in the VACoNML Virginia 31 Investment Pool (the "Trust Fund") for each such city; and 32 33 WHEREAS, it appearing to the City Council that it is in the best interests of the 34 City to become a participating locality in the Trust Fund; and 35 36 WHEREAS, the City Treasurer of Virginia Beach, as custodian of City funds 37 pursuant to section 8.03 of the City Charter, is responsible for the investment of City 38 funds; and 39 40 WHEREAS, the City's duly elected Treasurer has the authority and responsibility 41 under Virginia law to determine the manner in which City funds under his control will be 42 invested, subject to those restrictions provided by law; 43 44 NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 45 VIRGINIA BEACH, VIRGINIA, THAT: 46 47 1. The City does hereby agree to participate in a trust pursuant to Section 2.2-4501 48 of the Virginia Code for the purpose of investing moneys determined to derive the most 49 benefit from this investment strategy, belonging to it or within its control, other than 50 sinking funds, in certain authorized investments, in the form set forth in the VACoNML 51 Virginia lnvestment Pool Trust Fund Agreement (the "Agreement"), a copy of which is 52 attached here as Exhibit A. 53 54 2. The City agrees to become a"Participating Political Subdivision" in the 55 "VACo/VML Virginia lnvestment Pool" (hereinafter, the "Trust Fund"), as further defined 56 in the Agreement. 57 58 3. The City Treasurer, as custodian of all public moneys of the City, shall serve as 59 the trustee for the City of Virginia Beach with respect to the Trust Fund. 60 61 4. The Council consents to the City Treasurer executing and delivering a Trust 62 Joinder Agreement for Participating Political Subdivisions under VACo/VML Virginia 63 Investment Pool ("Trust Joinder Agreement"), a copy of which is attached hereto as 64 Exhibit B. 65 66 5. This ordinance shall be in force and effect upon its adoption. Adopted by the Council of the City of Virginia Beach, Virginia, on the 25th day Of February , 2014. APPROVED AS TO CONTENT: City APPROVED AS TO LEGAL SUFFICIENCY: CA12868 R-1 December 19, 2013 CITY OF VIRGINIA BEACH, VIRGINIA INVESTMENT POLICY PREAMBLE The City Council, elected officials, appointed officers, and employees of the City of Virginia Beach recognize their financial stewardship responsibilities to the citizens of Virginia Beach. A critical area of this financial stewardship is the investment of the city's cash balances, for with the City Treasurer bears primary responsibility. Recognizing the advantages of a safe and effective investment program for the city's funds, the City Council and City Treasurer jointly acknowledge the need for and hereafter accept this investment policy as it may be amended from time to time. City of Virginia Beach, Virginia Investment Policy (Revised February 2014) CITY OF VIRGINIA BEACH, VIRGINIA INVESTMENT POLICY TABLE OF CONTENTS I. II. III IV V VI. VII. VIII. IX. X. XI. Pucpose------------------------------------------------------------- Scope ---------------------------------------------------------------- Objective----------------------------------------------------------- 1. Safety--------------------------------------------------------- A. Credit Risk.------------------------------------------- B. Interest Rate Risk 2. Liquidity---------------------------------------------------- 3. Yield---------------------------------------------------------- Standards of Care----------------------------------------------- 1. Prudence.---------------------------------------------------- 2. Ethics and Conflicts of Interest 3. Delegation of Authority________________________________ Safekeeping, Custody, and Program Integrity _ _ _ _ _ _ _ _ _ 1. Authorized Financial Dealers and Institutions__ 2. Internal Controls 3. Delivery vs. Payment (DVP)_______________________ 4. Independent Review_____________________________________ Suitable and Authorized Investments 1. Investment Types----------------------------------------- 2. Collateralization ------------------------------------------ 3. Repurchase Agreements________________________________ Investment Parameters. --------------------------------------- 1. Diversification --------------------------------------------- 2. Maximum Maturities ------------------------------------ 3. Competitive Bids----------------------------------------- Reporting_------------------------------------------------------- 1. Methods ----------------------------------------------------- 2. Performance Standards 3. Mark to Market,------------------------------------------- Policy-------------------- --------------------------- ------ 1. Exemption-------------------------------------------------- 2. Amendments ----------------------------------------------- GFOA Recommended Practices --------------------------- Glossary of Terms.------------------------------- ---- PaQe 3 --------------------------- 3 --------------------------- 3 --------------------------- 3 --------------------------- -------------------------- 4 -------------------------- 4 ---------------------------4 4 --------------------------- 4 ---------------------------- 4 --------------------------- --------------------------- 5 --------------------------- 5 --------------------------- 5 --------------------------- 5 --------------------------- 6 --------------------------- 6 ---------------------------6 --------------------------- 6 ---------------------------6 7 --------------------------- 7 --------------------------- --------------------------- g 8 --------------------------- 8 --------------------------- 8 ---------------------------- 8 ---------------------------- ----------------------------8 9 ---------------------------- ----------------------------9 --------------------------- 9 ---- --------------9 9 ---------------------------- ---------------------------- 9. 10 Appendices: A. Virginia Security for Public Deposits Act____________________________ __._____________________. B. Broker/Dealer Questionnaire and Certification__ _..______ ---------------- --------- ---------- C. Investment Guidelines for Bankers' Acceptances____________________________________________________. D. Investment Guidelines for Commercial Paper __ _________ ________ ________. _________ __________. E. Government Finance Officers' Association Recommended Practices Pertaining to Cash Management and Investing Activities._________________________________________ ________________ F. Various Code of Virginia Provisions Pertaining to Investment of Local Government Funds ----------------------------------------------------------------------------------------------------------------- 15 20 23 25 27 55 2 I. PURPOSE The purpose of this policy is to provide a guide for the actions of individuals responsible for the investment of city funds. In general, it is the policy of the city that its funds be invested in a manner which will provide the highest investment retums only after the goals of maximum security/safety, meeting daily cash flow demands, and conformance with all state and local statutes governing the investment of public funds have been met. In pursuing this objective, individuals investing city funds are to be guided by the "prudent person rule." The prudent person rule provides that, `Investments shall be made with judgment and cai•e-under circumstances then pr°evailing-which persons of prudence, discretion, and intelligence exercise in the management of thezr own affairs, not for speculation, but for investment, considering the probable safery of capital as well as the probable income to be derived. ' II. SCOPE This investment policy applies to the investment activities of all cash fmancial assets of the government of the City of Virginia Beach, except for assets of the employee retirement system, the employee deferred compensation plan, funds separately invested in accordance with bond resolutions for indentures (e.g., debt service funds, irrevocable escrow funds established by a refunding bond issue, etc.), and funds required to be separately invested in accordance with an escrow agreement, trust agreement, or other legally adopted contractual arrangement. Funds subject to this policy are accounted for in the city's Comprehensive Annual Financial Report and include: • General Fund • Special Revenue Funds • Capital Project Funds • Enterprise/Proprietary Funds • Trust and Agency Funds • Any other fund created, unless specifically exempted by this policy or by separate action of the City Council. Except as may be specifically noted herein, this investment policy applies to all transactions involving the financial assets and related activities of all the foregoing funds. Except for cash in certain restricted and special funds, the City of Virginia Beach will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. III. OBJECTIVE The primary objectives, in priority order, of the city's investment activities shall be: 1. Safety Safety of principal is the foremost objective of the city's investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The goal is to mitigate credit risk and interest rate risk. A. Credit Risk Credit risk is the risk of loss due to the financial failure of the security issuer or backer. Credit risk may be mitigated by: • Limiting investments to the safest types of securities; • Pre-qualifying the fmancial institutions, brokers/dealers, intermediaries, and advisors with which the city will do business; and • Diversifying the investment portfolio so that potential losses on individual securities will be minimized. B. Interest Rate Risk Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may be mitigated by: • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and • By investing operating funds primarily in shorter-term securities. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds provided that the funds are registered under the Securities Act of the Commonwealth or the Federal Investment Co. Act of 1940, and that the investments by such funds are restricted to investments otherwise permitted by law for political subdivisions as set forth in the Investment of Public Funds Act, or investments in other such funds whose portfolios are so registered, or local government investment pools which offer same-day liquidity for short-term funds. 3. Yield The investment portfolio shall be designed with the objective of attaimng a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments is to be limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity, with the following exceptions: • A declining credit security could be sold early to minimize loss of principal; • A security swap which would improve the quality, yield, or target duration in the portfolio; or • Liquidity needs of the portfolio require that an appropriately selected security be sold. IV. STANDARDS OF CARE Prudence The standard of prudence to be used by the city's investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for a specific security's credit risk or market price changes, provided negative deviations from expectations are reported in a timely fashion and the liquidation or sale of such securities is carried out in accordance with the terms of this policy. As stated previously, the prudent person standard provides that, `Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of capital as well as the probable income to be derived.' 2. Ethics and Conflicts of Interest Officers and employees, including those involved in the City's investment process, are governed by the State and Local Government Conflict of Interests Act. Specifically, Code of Virginia §2.2- 3103 (5) and (6) of the Act provide that no officer or employee shall: (a) accept any money, loan, gift, favor, service, or business or professional opportunity that reasonably tends to influence him in the performance of his official duties; or (b) accept any business or professional opportunity when he knows that there is a reasonable likelihood that the opportunity is being afforded him to influence him in the performance of his official duties. To ensure that personal investment or business transactions do no violate these provisions or any other provision of the State and Local Government Conflict of Interests Act, officers and employees must (1) familiarize themselves with this Act and (2) carefully scrutinize how their personal interest may affect or be affected by the transactions that are part of the City's investment process. Delegation of Authority The City Treasurer, who is the custodian of the City's monies pursuant to §8.03 of the Charter of the City of Virginia Beach, shall have responsibility for the operation of the investment program. The City Treasurer shall follow established written procedures and maintain internal controls for the operation of the investment program in a manner consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, collateraUdepository agreements, and banking service contracts. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. V. SAFEKEEPING, CUSTODY, AND PROGRAM INTEGRITY Authorized Financial Institutions and Dealers The City Treasurer will maintain a list of financial institutions and dealers authorized to provide investment services. Financial institutions shall be "qualified public depositories" in accordance with provisions of the Virginia Security For Public Deposits Act (Code of Virginia §2.2-4400), as amended (copy attached as Appendix A), and must be designated a city depository in accordance with § 2-226 of the City Code. In addition, the City Treasurer will also maintain a list of approved security broker/dealers selected by creditworthiness (minimum capital requirement $10,000,000 and at least five years of operation). These may include "primary" dealers or regional dealers that qualify under the Securities and Exchange Commission Rule 150-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the following as appropriate: • Audited financial statements • Proof of Financial Industry Regulatory Authority membership • Proof of State registration • Completed City of Virginia Beach Broker/Dealer Questionnaire (not applicable to Certificate of Deposit counterparties) • Certification of having read, understood, and agreed to comply with the City of Virginia Beach's investment policy. • Evidence of adequate insurance coverage. An annual review of the financial condition and registration of qualified bidders will be conducted by the City Treasurer. 2. Internal Controls The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the city are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (a) the cost of a control should not exceed the benefits likely to be derived; and (b) the valuation of costs and benefits requires estimates and judgments by management. The internal controls shall include, but are not limited to the following: A. Control of collusion. B. Separation of reconciliation from accounting/record keeping. C. Custodial safekeeping. D. Avoidance of physical possession and/or delivery of securities. E. Clear delegation of authority to subordinate staff. F. Written confirmation of telephone transactions for investments. G. Maintenance of current contracts/agreements with the lead bank and third-party custodian. 3. Delivery vs. Payment All security transactions, including collateral for repurchase agreements, will be executed by delivery vs. payment (DVP). This ensures that securities are deposited in the appropriate safekeeping institution prior to the release of funds. Securities will be held by a third-parly custodian as evidenced by safekeeping receipts with a written custodial agreement. The safekeeping instilution shall annually provide a copy of their most recent report on internal controls (Statement of Auditing Standards No. 70, or SAS 70). 4. Independent Review To help maintain the integrity of the investment program, the City Treasurer shall establish a process for annual independent review by an external auditor to assure compliance with this policy. VI. SUITABLE AND AUTHORIZED INVESTMENTS Investment Types Consistent with the Government Finance Officers' Association (GFOA) Recommended Practice on State Statutes Concerning Investment Practices, and as defined by state law where applicable, the following investments will be pernutted by this policy: • U.S. Government obligations, U.S. Government agency obligations, and U.S. Government instrumentality obligations, in accordance with §2.2-4501 of the Code of Virginia • Repurchase agreements, in accordance with §2.2-4507 of the Code of Virginia • Certificates of deposit, in accordance with §2.2-4509 of the Code of Virginia • Savings and loan association deposits, in accordance with §2.2-4500 of the Code of Virginia • Prime bankers' acceptances, in accordance with §2.2-4504 of the Code of Virginia and Appendix C(Investment Guidelines for Bankers' Acceptances) of this policy • Prime commercial paper, in accordance with §2.2-4502 of the Code of Virginia except as further restricted by Appendix D(Investment Guidelines for Commercial Paper) of this policy • Investment-grade obligations of state and local governments and public authorities, in accordance with §2.2-4501 of the Code of Virginia • Money market mutual funds whose portfolios consist only of domestic securities, regulated by the Securities and Exchange Commission and as provided for in §2.2- 4508 of the Code of Virginia • Virginia Local Government Investment Pool as provided for in §2.2-4600 et seq. of the Code of Virginia • Virginia lnvestment Pool established as a governmental trust under Section 115 of the Internal Revenue code and by the Joint Powers Act Consistent with the Government Finance Officers' Association (GFOA) Recommended Practice on the Use of Derivatives by State and Local Governments, extreme caution should be exercised in the use of derivative instruments. The City Treasurer should carefully consider the factors outlined in the GFOA recommended practice when contemplating any derivative-type investment. (See GFOA Recommended Practices, Appendix E). 2. Collateralization In accordance with Virginia law (Virginia Security for Public Deposits Act, §2.2-4400 et seq. of the Code of Virginia) and the GFOA Recommended Practice on the Collateralization of Public Deposits, collateralization is required on all demand deposit accounts, including checking accounts and non-negotiable certificates of deposit, and repurchase agreements. The Virginia Security for Deposits Act adopted the concept of mutuality of responsibility, involving a cross guarantee among all banks holding public deposits. In the event of default by one financial institution, an assessment levied against all participating institutions will cover all uncollateralized public deposits. Collateral may be held by an independent third party with whom the City of Virginia Beach has a current written custodial agreement. (See GFOA Recommended Practices, Appendix E) 3. Repurchase Agreements Use and collateralization of repurchase agreements should be consistent with GFOA Recommended Practices on Repurchase Agreements. (See GFOA Recommended Practices, Appendix E) VII. INVESTMENT PAI2AMETERS Diversification Investments are to be diversified in accordance with the provisions of this policy by: limiting investments to avoid over-concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities), investing in securities with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as local govemment investment pools (LGIPs), money market funds or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. (See the GFOA Recommended Practice on "Diversification of Investments in a Portfolio" in Appendix E. 2. Maaumum Maturities Generally, the City Treasurer shall limit maximum final stated maturities of investments covered by this policy to five years. To the extent possible, the Treasurer will attempt to match investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the Treasurer will not directly invest in securities maturing more than five (5) years from the date of purchase. The Treasurer shall deternune the appropriate average weighted maturity of the portfolio consistent with the investment objectives. Reverse and escrow funds may be invested in securities exceeding five (5) years to maturity if the maturities of such investments are made to coincide as nearly as practicable with the expected use of funds. The investment of these types of fiznds shall be disclosed to the City Council including the disclosure of appropriate time restrictions, if applicable. 3. Competitive Bids The City Treasurer shall request competitive bids from at least (3) brokers or financial institutions for purchases of investments, except in circumstances when the Treasurer, or his designee, deem it necessary to do otherwise in order to meet certain investment goals, or when market conditions or circumstances dictate otherwise. Competitive bids are not required for funds invested in the state's investment pool. VIII. REPORTING Methods The City Treasurer shall prepare an investment report at least quarterly, including a succinct management summary that provides a clear picture of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will indicate whether investment activities during the reporting period have conformed to the investment policy. The report shall be provided to the Finance Department. The reports will be provided to the City Manager and City Council upon request. The City Council may require additional information or clarification from the City Treasurer either orally or in writing. The report will include the following: • A listing of the amount and type of individual securities held at the end of the reporting period. • Unrealized gains or losses resulting from market price appreciation or depreciation by listing the cost and market value of those securities over one-year duration that are not intended to be held until maturity (available at fiscal year end). • Average weighted yield to maturity of the investment portfolio. • Listing of investment by maturity date. • The percentage of the total portfolio which each type of investment represents. Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. Portfolio performance should be compared to appropriate benchmarks on a regular basis and at least annually in one of the quarterly reports due to City Council. 3. Mark-to Market A statement of the market value (obtained from a reputable and independent source) of the portfolio shall be prepared and reported to the Finance Department at least quarterly. This statement will be provided to the City Manager and the City Council upon request. This statement should include the market value, book value, and unrealized gain or loss on each investment in the portfolio. This will ensure that the minimal amount of review has been performed on the investment portfolio in terms of value and subsequent price volatility. Review should be consistent with the GFOA Recommended Practice on Mark-to Market Practices for State and Local Government Investment Portfolios and Investment Pools. (See GFOA Recommended Practices, Appendix E) IX. POLICY 1. Exemption Any investment held at the time of adoption of this policy that does not meet the guidelines and requirements of this policy shall be exempted from such guidelines and requirements. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. 2. Amendments This policy shall be reviewed by the City Treasurer on an annual basis or more frequently as necessary. Any changes must be approved by the City Council. X. GFOA RECOMMENDED PRACTICES The Government Finance Officers' Association (GFOA) develops and approves policy statements and recommended practices pertaining to cash management and investment activities (see Appendix E). These policy statements and recommended practices are intended to serve as guidelines for state and local governments and other public bodies in the safe investment of public funds. To the extent that GFOA's policy statements and recommended practices, as they may be amended and/or adopted from time to time, do not conflict with applicable law, the provisions of this investment policy, or the safe, orderly, and efficient investment of the city's funds, the City Treasurer shall incorporate them into the city's investment program. XL GLOSSERY OF TERMS AGENCIES: Federal agency securities. ARBITRAGE: A technique employed to take advantage of price differences in separate markets. This may be accomplished by purchasing a security in one market and immediately selling in another market at a better price. As used in the context of investing public funds, arbitrage means borrowing at low tax- exempt rates and investing in taxable instruments at higher rates. The arbitrage rebate provisions of the 1986 tax reform act govern this type of activity. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCES (BAs): Negotiable time drafts drawn on commercial banks to fmance the import, export, shipment and storage of goods. Bankers' acceptances are backed by the credit of the bank, which assumes primary liability. The acceptance is further collateralized by the goods in shipment or storage. BASIS POINT: One-one hundredth of one percent. For example, one quarter of one percent would be expressed as "twenty-five basis points." BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BOND: A written, interest bearing certificate of debt with a promise to pay on a specific date. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Business promissory notes, with a stated date of payment, which are usually sold at a discount and are backed by the general credit of the company. The credit of commercial paper may be enhanced by letters of credit from one or more banks. Commercial paper is generally for terms of less than 270 days; longer corporate obligations are referred to as notes or bonds and are subject to a greater degree of regulation. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of Virginia Beach. It includes combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COMPENSATING BALANCE: A minimum level of deposits maintained in one ar more non-interest bearing accounts at a bank to defray the costs of the banking services. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. 10 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment, or DVP, is delivery of securities coincident with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. Delivering securities DVP means that funds are not released by the trustee until the security is delivered either in physical form or through DTC. DERIVATIVE: A financial instrument created from or whose value depends on (is derived from) the value of one or more underlying assets or indexes of asset values. The term "derivative products" refers to instruments or features such as collateralized mortgage obligations (CMOs), interest-only (IOs) and principal only (POs), forwards, futures, currency and interest rate swaps, options, floaters/inverse floaters, and caps/floors/collars. DISCOUNT: The amount or percentage at which a security sells below par value. For example, if a bond with a$1,000 par value sells for $900, the discount is $100 or 10%. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value; e.g., U.S. Treasury Bills. DNERSIFICATION: Dividing investment funds among a variety of securities offering independent retums. Diversification is a means of reducing risk in an investment portfolio. D.K.: "Don't know." If the delivery of a security fails because the trustee was not informed to take delivery or because the security is delivered for a different amount than agreed upon, the trade is "DK'ed," meaning refused. D.T.C.: The Depository Trust Company (DTC) of New York acts as the repository for all securities which are electronic, as opposed to physical delivery. These include all U.S. Treasury and agency issues and certain issues of commercial paper. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals; e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters. FEDREAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HtJD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgagees and second loans, in addition to fixed-rate mortgages. FNMA's securities are highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. 11 FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA): A self-regulatory organization. FINRA is the largest non-governmental regulator for all securities firms doing business with the United States public. It was created in 2007 by the consolidation of the regulatory operations of the National Association for Securities Dealers (NASD) and New York Stock Exchange (NYSE). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINIEE MAE): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, or FMHM mortgages. The term "passthroughs" is often used to describe Ginnie Maes. JiIMBO CD: A certificate of deposit of at least one hundred thousand dollars. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size transactions can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. MUNICIPAL OBLIGATION: A security issued by a state or local government, public authority, or similar entity. These obligations are generally exempt from federal income tax. Taxable municipal obligations are issued by localities or authorities for non-public purpose projects. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the banking system and 12 stimulate growth of money and credit; sales have the opposite effect. Open market operations are an important and flexible Federal Reserve monetary policy tool. PAR VALUE: The value of a security as expressed on its face without consideration of any premium, discount, or accrued interest. Par value is also known as "face amount" or "face value." PREMIUM: The amount by which the price paid for a security exceeds the par value. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALERS: Government securities dealers which submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to the Fed's informal oversight. Primary dealers include Securities and Exchange Commission (SEC) - registered securities broker-dealers, banks, and a few unregulated firms. PRINCIPAL: The amount paid for a security exclusive of accrued interest. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. REPURCHASE AGREEMENT (REPO): In a repo, a holder of securities sells the securities to an investor with an agreement to repurchase them at a fixed price on a certain date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use repos extensively to finance their positions. REVERSE REPO: In a reverse repo, an investor owns securities, such as a Treasury note, U.S. government agency bond or other security, that a bank or dealer purchases under an agreement to sell back to the investor on a specified date, at an agreed-upon interest rate. A reverse repo is the opposite or complement to a repurchase agreement transaction - i.e., every repo involves a reverse repo by the other party to the transaction. SAFEKEEPING: A service to customers rendered by third party banks for a fee whereby securities and collateral of all types and descriptions are held by the bank for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following their initial sale and distribution. SECURITIES & EXCHANGE COMMSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. TIME DEPOSIT: A bank deposit drawing interest at intervals and having a restrictive level of withdrawals; e.g., a savings account. TREASURY BILLS: A discount security issued by the U.S. Treasury to fmance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: A medium-term interest bearing security issued by the U.S. Treasury to finance the national debt. TREASURY OBLIGATIONS: Securities representing obligations backed by the full faith and credit of the United States. Treasury bills are short-term obligations (3 months to 1 year), treasury notes are medium-term obligations (1 to 10 years), and treasury bonds are long-term obligations (10 to 30 years). 13 UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as non-member broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm including margin loans and commitments to purchase securities, one reason new public debt issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. U.S. AGENCY SECURITIES: Obligations issued by agencies established by the United States government. These obligations are regarded as being almost as risk free as direct treasury issues because the federal government supervises and regulates the issuers and is regarded as having a moral obligation to ensure repayment. YIELD: The rate of annual income return on an investment, expressed as a percentage. ZERO BALANCE ACCOUNT: A demand deposit account in which no cash balance is maintained overnight. As checks drawn on the account are presented, the funds necessary to pay them are transferred from a master account at the same bank. Zero balance accounts are used to control float or provide account separation for specialized purposes. 14 APPENDIX A Virginia Security For Public Deposits Act 15 § 2.2-4400. Short title; declaration of intent; applicability. A. This chapter may be cited as the "Virginia Security for Public Deposits Act." B. The General Assembly intends by this chapter to establish a single body of law applicable to the pledge of security as collateral for public funds on deposit in financial institutions so that the procedure for securing public deposits may be uniform throughout the Commonwealth. C. All public deposits in qualified public depositories that are required to be secured by other provisions of law or by a public depositor shall be secured pursuant to this chapter. D. This chapter, however, shall not apply to deposits made by the State Treasurer in out-of-state financial institutions related to master custody and tri-party repurchase agreements, provided (i) such deposits do not exceed ten percent of average monthly investment balances and (ii) the out-of-state financial institutions used for this purpose have a short-term deposit rating of not less than A-1 by Standard & Poor's Rating Service or P-1 by Moody's Investors Service, Inc., respectively. (1973, c. 172, §§ 2.1-359, 2.1-361; 1984, c. 135; 2000, cc. 335, 352; 2001, c. 844.) § 2.2-4401. Definitions. As used in this chapter, unless the context requires a different meaning: "Public deposit" means moneys of the Commonwealth or of any county, city, town or other political subdivision thereof, including moneys of any commission, institution, committee, board or officer of the foregoing and any state, circuit, county or municipal court, which moneys are deposited in any qualified public depository in any of the following types of accounts: nonnegotiable or registered time deposits, demand deposits, savings deposits, and any other transaction accounts, and security for such deposit is required by other provisions of law, or is required due to an election of the public depositor. "Qualified public depository" means any national banking association, federal savings and loan association or federal savings bank located in Virginia and any bank, trust company or savings institution organized under Virginia law that receives or holds public deposits that are secured pursuant to this chapter. "Default or insolvency" includes, but shall not be limited to, the failure or refusal of any qualified public depository to return any public deposit upon demand or at maturity and the issuance of an order of supervisory authority restraining such depository from making payments of deposit liabilities or the appointment of a receiver for such depository. "Treasury Board" means the Treasury Board of the Commonwealth created by § 2.2-2415. "Eligible collateral" means securities of the character authorized as legal investments under the laws of the Commonwealth for public sinking funds or other public funds and securities acceptable under United States Treasury Department regulations as collateral for the security of treasury tax and loan accounts. "Required collateral" of a qualified public depository means, (i) in the case of a bank, a sum equal to fifty percent of the actual public deposits held at the close of business on the last banking day in the month immediately preceding the date of any computation of such balance, or the average balance of all public deposits for such preceding month, whichever is greater, and (ii) in the case of a savings and loan association or savings bank, a sum equal to 100 percent of the average daily balance for the month immediately preceding the date of any computation of such balance of all public deposits held by such depository but shall not be less than 100 percent of the public deposits held by such depository at the close of business on the last banking day in such preceding month. "Treasurer" and "public depositor" means the State Treasurer, a county, city, or town treasurer or director of finance or similar officer and the custodian of any other public deposits secured pursuant to this chapter. (1973, c. 172, § 2.1-360; 1984, c. 135; 1987, c. 718; 1996, c. 77; 1998, cc. 20, 21; 2001, c. 844.) § 2.2-4402. Collateral for public deposits. Every qualified public depository shall deposit with the State Treasurer, or, with the approval of the Treasury Board, with the Federal Reserve Bank of Richmond or any other bank or trust company located 16 within or without the Commonwealth, eligible collateral equal to or in excess of the required collateral of such depository to be held subject to the order of the Treasury Board. Eligible collateral shall be valued as determined by the Treasury Board. Substitutions and withdrawals of eligible collateral may be made from time to time under regulations issued by the Treasury Board. Each qualified public depository shall, at the time of the deposit of eligible collateral, deliver to the State Treasurer a power of attorney authorizing him to transfer any registered securities deposited, or any part thereof, for the purpose of paying any of the liabilities provided for in this chapter. Notwithstanding any other provisions of law, no depository shall be required to give bond or pledge securities in the manner herein provided for the purpose of securing deposits received or held in the trust department of the depository and that are secured as required by § 61-21 or that are secured pursuant to Title 12, § 92a of the United States Code by securities of the classes prescribed by § 6.1-21. No qualified public depository shall accept or retain any public deposit that is required to be secured unless it has deposited eligible collateral equal to its required collateral with some proper depository pursuant to this chapter. (1973, c. 172, § 2.1-362; 2001, c. 844.) § 2.2-4403. Procedure for payment of losses where depository is bank. When the Treasury Board is advised by any treasurer or otherwise determines that a default or insolvency has occurred with regard to a qualified public depository that is a bank, it shall as promptly as practicable make payment to the proper treasurer of all funds subject to such default or insolvency, pursuant to the following procedures: 1. The Treasury Board and the treasurer shall ascertain the amount of public funds on deposit with the qualified public depository in default or insolvent that are secured pursuant to this chapter, either with the cooperation of the Commissioner of Financial Institutions or receiver appointed for such depository or by any other means available, and the amount of deposit insurance applicable to such deposits. 2. The amount of such public deposits ascertained as provided in subdivision 1, net of applicable deposit insurance, shall be assessed by the Treasury Board first against the depository in default or insolvent to the extent of the full realizable current market value of the collateral deposited by it to secure its public deposits, and second, to the extent that such collateral is insufficient to satisfy the liability of the depository upon its deposits secured pursuant to this chapter against each of the other qualified public depositories according to the ratio that the average daily balance for each month of the secured public deposits held by the depository during the twelve calendar months immediately preceding the date of the default or insolvency with respect to which the assessment is made bears to the total average daily balance for each month of all secured public deposits held by all qualified public depositories that are banks, other than the defaulting depository, during those twelve calendar months. 3. Assessments made by the Treasury Board shall be payable on the second business day following demand; and in case of the failure of any qualified public depository to pay such assessment when due, the State Treasurer shall promptly take possession of the eligible collateral deposited with him or with the Federal Reserve Bank of Richmond or other bank or trust company pursuant to this chapter and liquidate the same to the extent necessary to pay such assessment and turn over such amounts received to the Treasury Board. 4. Upon receipt of such assessment, payments or the proceeds of the eligible collateral liquidated to pay such assessments from the State Treasurer, the Treasury Board shall reimburse the public depositors to the extent of the depository's deposit liability to them, net of any applicable deposit insurance. (1973, c. 172, § 2.1-363; 1978, c. 14; 1984, c. 135; 2001, c. 844.) § 2.2-4404. Procedure for payment of losses where depository is savings bank or savings and loan association. When the Treasury Board is advised by any treasurer or otherwise determines that a default or insolvency has occurred with regard to a qualified public depository that is a savings bank or a savings and loan association, it shall as promptly as practicable make payment to the proper treasurer of all funds subject to such default or insolvency, pursuant to the following procedures: 1. The Treasury Board and the treasurer shall ascertain the amount of public funds on deposit with the qualified public depository in default or insolvent that are secured pursuant to this chapter, either with the 17 cooperation of the Commissioner of Financial Institutions or receiver appointed for such depository or by any other means available, and the amount of deposit insurance applicable to such deposits. 2. The amount of such public deposits ascertained as provided in subdivision 1 net of applicable deposit insurance, shall be assessed by the Treasury Board against the depository in default or insolvent. The State Treasurer shall promptly take possession of such of the eligible collateral deposited by such depository with him, or with any other depository pursuant to this chapter, as is necessary to satisfy the assessment of the Treasury Board and shall liquidate the same and turn over the proceeds thereof to the Treasury Board. 3. Upon receipt from the State Treasurer of the payments or proceeds of the eligible collateral liquidated to pay such assessments from the State Treasurer, the Treasury Board shall reimburse the public depositors to the extent of the depository's deposit liability to them, net of any applicable deposit insurance. (1984, c. 135, § 2.1-363.1; 2001, c. 844.) § 2.2-4405. Powers of Treasury Board relating to the administration of this chapter. The Treasury Board shall have power to: 1. Make and enforce regulations necessary and proper to the full and complete performance of its functions under this chapter; 2. Prescribe regulations fixing terms and conditions consistent with this chapter under which public deposits may be received and held; 3. Require such additional collateral, in excess of the required collateral of any qualified public depository, of any and all such depositories as it may determine prudent under the circumstances; 4. Determine what securities shall be acceptable as eligible collateral, and to fix the percentage of face value or market value of such securities that can be used to secure public deposits; 5. Require any qualified public depository to furnish such information concerning its public deposits; and 6. Deternune when a default or insolvency has occurred and to take such action as it may deem advisable for the protection, collection, compromise or settlement of any claim arising in case of default or insolvency. (1973, c. 172, § 2.1-364; 2001, c. 844.) § 2.2-4406. Subrogation of Treasury Board to depositor's rights; payment of sums received from distribution of assets. Upon payment in full to any public depositor, the Treasury Board shall be subrogated to all of such depositor's rights, title and interest against the depository in default or insolvent and shall share in any distribution of its assets ratably with other depositors. Any sums received from any such distribution shall be paid to the other qualified public depositories against which assessments were made, in proportion to such assessments, net of any proper expense of the Treasury Board in enforcing any such claim. (1973, c. 172, § 2.1-365; 2001, c. 844.) § 2.2-4407. Deposit of public funds in qualified public depository mandatory. No public deposit that is required to be secured pursuant to this chapter shall be made except in a qualified public depository. (1973, c. 172, § 2.1-366; 2001, c. 844.) § 2.2-4408. Authority to deposit public funds. A. All treasurers and public depositors are hereby authorized to deposit funds under their control in qualified public depositories securing public deposits pursuant to this chapter. B. Local officials handling public funds in the Commonwealth may not require from a depository institution any pledge of collateral for their deposits in such institution which is in excess of the requirements of this chapter. (1973, c. 172, § 2.1-367; 1980, c. 538, § 2.1-234.5; 1998, cc. 20, 21; 2001, c. 844.) 18 § 2.2-4409. Authority to secure public deposits; acceptance of liabilities and duties by public depositories. All institutions located in the Commonwealth that are pernutted to hold and receive public deposits are hereby authorized to secure such deposits in accordance with this chapter. Any institution accepting a public deposit that is required to be secured pursuant to this chapter shall be deemed to have accepted the liabilities and duties imposed upon it pursuant to this chapter with respect to the deposit. (1973, c. 172, § 2.1-368; 2001, c. 844.) § 2.2-4410. Liability of treasurers or public depositors. When deposits are made in accordance with this chapter no treasurer or public depositor shall be liable for any loss thereof resulting from the failure or default of any depository in the absence of negligence, malfeasance, misfeasance, or nonfeasance on his part or on the part of his assistants or employees. (1973, c. 172, § 2.1-370; 2001, c. 844.) § 2.2-4411. Reports of public depositories. Within ten days after the end of each calendar month or when requested by the Treasury Board each qualified public depository shall submit to the Treasury Board a written report, under oath, indicating (i) the total amount of public deposits held by it at the close of business on the last banking day in the month, (ii) the average daily balance for the month of all secured public deposits held by it during the month, (iii) a detailed schedule of pledged collateral at its current asset value for purposes of collateral at the close of business on the last banking day in the month, and (iv) any other information with respect to its secured public deposits that may be required by the Treasury Board. Each qualified public depository shall also furnish at the same time to each public depositor for which it holds deposits and that makes a written request therefore a schedule of the secured public deposits to the credit of such depositor as of the close of business on the last banking day in the month and the total amount of all secured public deposits held by it upon such date. (1973, c. 172, § 2.1-369; 1979, c. 154; 2001, c. 844.) 19 APPENDIX B BROKER/DEALER QUESTIONAIRE AND CERTIFICATION 20 Broker/Dealer Questionnaire Section I: The City of Virginia Beach (hereinafter referred to as the "City") is a government operating under the laws of the Commonwealth of Virginia. The City has adopted a written investment policy which regulates the standards and procedures used in its cash management activities. A copy of the Investment Policy is attached to this document. The City maintains relationships with qualified members of the broker/dealer community who, in its opinion, understand the needs, constraints, and goals of the City. Section IL• 1. Name of Firm: 2. Address: 3. Telephone Number(s): Contact Personnel: Name: Title: Title: Name: Title: 5. Is your firm a member of FINRA? 6. Place an `x' by each regulatory agency that your firm is examined by and/or subject to its rules and regulations. FDIC SEC NYSE Comptroller of Currency Federal Reserve System 7. Have you obtained all required licenses to operate as a broker/dealer in the Commonwealth of Virginia? 8. To the best of your knowledge, have there been any `material' litigation, arbitration or regulatory proceedings, adjudicated ar settled, that your firm has been subject to within the last five years that involved issues concerning the suitability of the sale or purchase of securities to intuitional clients or fraudulent or unfair practices related to the sale of securities to an institutional client? If so, please describe each such matter briefly. 9. Please provide certified audited fmancial statements for the past fiscal year. 21 Section III: I hereby certify that the above information is true and correct to the best of my knowledge, that I have read the referenced Investment Policy, that I agree to comply with the Investment Policy, and that I am authorized to execute this request for information on behalf of my firm. Name of Firm: By: _ Titte: Date: 22 APPENDIX C Investment Guidelines for Bankers' Acceptances 23 City of Virginia Beach Investment Guidelines for Bankers' Acceptances The following terms and conditions shall apply to investment in bankers' acceptances: Prime bankers' acceptances must be issued by domestic banks with a minimum long term debt rating of "AA" or foreign banks with a"AAA" long term debt rating by a majority of the rating services that have rated the issuer. The short term debt rating must be at least "A1" or equivalent by all the rating services that rate the issuer (minimum of two ratings must be available). Prime bankers' acceptances shall not exceed fifty percent (50%) of the total investment portfolio's book value on the date of acquisition. The amount invested in any one commercial bank pursuant to this paragraph cannot exceed fifteen percent (15%) of the book value of the portfolio on the date of acquisition or $15,000,000.00, whichever is less. Prime bankers' acceptances must be eligible for purchase by the Federal Reserve System as required by TCA 9-4-602(a)(1). A prime bankers' acceptance must have an original maturity of not more than two hundred seventy (270) days to be eligible for purchase and it must: a. Arise out of the current shipment of goods between countries or within the United States, ar b. Arise out of storage within the United States of goods under contract of sale or expected to move into the channel of trade within a reasonable time and that are secured throughout their life by a warehouse receipt or similar document conveying title to the underlying goods. 24 APPENDIX D Investment Guidelines for Commercial Paper 25 City of Virginia Beach Investment Guidelines for Commercial Paper The following terms and conditions shall apply to investment in commercial paper: 1. Prime commercial paper must have a maturity that does not exceed two hundred seventy (270) days. 2. Acquisition will be monitored to assure that no more than five percent (5%) of the portfolio book value at the date of acquisition, or $15,000,000, whichever is less, shall be invested in prime commercial paper of a single issuing corporation. The total holdings of an issuer's paper should not represent more than 5% of the issuing corporation's total outstanding commercial paper. 3. Purchases of prime commercial paper shall not exceed thirty-five percent (35%) of the portfolio book value at the date of acquisition. 4. Purchases must be limited to corporations that meet the following criteria: a. "Prime quality" is commercial paper that shall be rated by at least two of the following: Moody's Investors Services, Inc., within its NCO/Moody's rating of prime 1; Standard and Poor's Inc., within its rating of A-1; Fitch Investors Services, Inc., within its rating of F-1; Duff and Phelps, Inc., within its rating of D-1, or by their corporate successors. If the corporation has senior long term debt, it must have a minimum rating of "A" or the equivalent rating by at least two of the above listed rating services. b. The commercial paper rating must be based on the merits of the issuer or guarantee/agreement of a non-bank corporation, and not be backed by a letter of credit or insurance from a third party. c. Financial information should be obtained for reference on all corporations issuing commercial paper owned by the City of Virginia Beach. Issues may be acquired from authorized broker/dealers or directly from an eligible issuer. Prime commercial paper of depository institutions or of a holding company thereof shall not be held as part of the city's investment portfolio. Investments in banks should be as a depositor rather than as a creditor. Other fmance company commercial paper is eligible for investment pursuant to the credit guidelines previously described. 26 APPENDIX E Government Finance Officers' Association Recommended Practices Pertaining to Cash Management and Investment Activities 27 GOVERNMENT FINANCE OFFICERS ASSOCIATION RECOMMENDED PRACTICES • Governmental Relationships with Securities Dealers • Establishing a Policy for Repurchase Agreements • Adopting Policies for the Frequency of Purchased Securities Valuation in Repurchase Agreements • Collateralizing Public Deposits • Using Mutual Funds for Cash Management Purposes • Selection and On-Going Review of Investment Advisors for Non-pension Fund Investment Porfolios • Use of Derivatives and Structured Investments by State and Local Governments for Non-Pension Fund Investment Portfolios • Mark-to-Market Practices for State and Local Government Investment Portfolios and Investment Pools • Securities Lending Programs for Non-Pension Fund • Using Commercial Paper in Investment Portfolios • Diversification of Investments in a Portfolio • Managing Market Risk in Investment Portfolios • Use of Local Government Investment Pools (LGIPs) • Using Safekeeping and Third-Party Custodian Services 28 Government Finance Officers Association Recommended Practice Government Relationships with Securities Dealers (1986, 1988, 2003, 2006, and 2012) BacklZround. Finance officers, treasurers and investment officers (hereafter referred to as government investors) who manage and invest public funds place billions of dollars in the fixed-income and money markets on a daily basis. They have a fiduciary responsibility to protect public funds, to always act in the best interest of their entity, to maintain safety and an appropriate level of liquidity and to attain a competitive return on their portfolio. Generally, access to the securities markets is made through securities dealers who are registered broker/dealers and through financial institutions (banks) with broker/dealer subsidiaries. The fiduciary responsibilities of a government investor include ensuring that: • reasonable comparisons are made to judge the appropriateness of all investments; • securities meet the criteria established in the investment policy, including liquidity, diversity and risk of investments, • security transactions are made on a best execution basis through a competitive process; • the counterparty to the transaction will fulfill all of its obligations; and, • the securities are properly safe-kept at a qualified custodial agent in a segregated account. It is important to note that brokers/firms may have unique strengths that may provide exceptional value within a specific category of investments, provided that you understand the security that you are purchasing, it dovetails with your investment policy, and you are aware of the risks associated with the transaction. A unique strength may compliment the skills and abilities of other approved brokers/firms. Communication with broker/dealers for the purposes of discussing market conditions, reviewing investment strategies and transacting a trade often occurs by phone, e-mail, or fax. Regardless of the method of communicating with a broker, a government investor needs to perform due diligence on all securities dealers prior to adding them to their list of approved brokers/dealers for transacting trades. Recommendation. The Government Finance Officers Association (GFOA) makes the following specific recommendations to government investors in selecting securities dealers for their approved vendor list, managing the relationships with the broker/dealers, and conducting investment transactions with them: 1. All securities are held in a third party bank separate from the broker/dealer that is transacting business 2. Use a defined internal process to select, qualify, renew, or terminate brokers and dealers. a. Use a questionnaire, conduct an interview, and/or conduct peer references to help determine that the broker understands the public entity's needs/objectives. b. Determine that the broker is actively involved in the market sectors utilized by the government entity. c. Select a number of brokers suitable to the entity, allowing for appropriate competition/service on all transactions, while limiting it to a manageable number. d. Require security brokers and dealers to comply with the Federal Reserve Bank of New York's capital adequacy guidelines or SEC Net Capital Rule as a condition of doing business. Obtain annual financial reports of the securities firm. e. Require that brokers provide written acknowledgement or certification of their review and understanding of the government entity's investment policy to assure compliance with its objectives, portfolio risk constrainzs, and investment trading requirements. £ Record and retain pertinent information on the firm and the individual broker including an annual review of the Central Registration Depository (CRDOO ) information for both maintained by the Financial Industry Regulation Authority (FINRA). Violations or sanctions imposed by a regulatory agency or government should be carefully reviewed for ternunation of relationship. g. Establish parameters that guide periodic review and potential termination of a broker dealer relationship. h. Do not select or approve more broker/dealers than will be reasonably used. It is better to develop good 29 relationships with a small number of approved dealers than to have a long list of firms who transact little ar no business with the investing entity. 3. Due diligence on broker/dealers should include obtaining information on: a. a security dealer's experience and knowledge of public funds investing; b. all contact information for the primary contact, backup and operations staff; c. a broker's manager and supervisor; d. the financial strength of the firm; e. areas of expertise and trading activity; f. registration with FINRA and any citations; g. the names and contact information for references similar to the entity; and h. potential conflicts of interest. 4. Establish a competitive procedure for attaining reasonable market rates on investment transactions: a. Require that all security sales be made through a competitive bid process. If possible, use a competitive offer process on purchases as well. b. Securities sold through a selling group at a set price (usually par) or available for specific bidding should be compared to comparable maturity securities as part of the competitive process to determine the best relative value. 5. Require that all security transactions be settled on a delivery versus payment basis at the entity's custodian bank to perfect ownership under a written custodial agreement. 6. Retain complete transaction documentation for audit trail purposes including trade tickets, confirmations and safekeeping receipts. 7. Electronic trading platforxns, such as Bloomberg and Tradeweb, are becoming another alternative to competitive pricing. These platforms can provide improved transparency over competitive bids and should be considered if cost effective for the government. It is still important to have a broker assigned to the account on the electronic platforms so that contact can be made if necessary. The same due diligence should be completed with all broker dealers on the electronic platforms. 8. Follow all state and entity ethics policies when dealing with all broker/dealers and investment vendors. References Introduction to Broker-Dealers for State and Local Governments, Second Edition, Sofia Anastopoulos, GFOA, 2008. Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. Federal Reserve Bank of New York, www.frb.ny.jZov, http://www.newyorkfed.org/markets/pridealers_listing. html. WWW.FINRA.GOV; http://wv,,",.nasd.com/web/idcplg?ldcService=SS GET PAGE&nodeId=370. Securities and Exchange Commission, www.sec.gov, VI. Financial Responsibility of Broker Dealers, A. Net Capital Rule 156-1 (17 CFR 240.156-1) http://www.sec..gov/divisions/marketreg/bdguide.htm#Vl. Approved by the GFOA's Executive Board, October, 2012. 30 Government Finance Officers Association Recommended Practice Establishing a Policy for Repurchase Agreements (2003, 2006, 2008 and 2010) (TIM) Background. Where pernutted by statute and investment policy, governmental entities often enter into Repurchase Agreements (repos) to invest funds on a short-term basis primarily to fund liquidity needs. Repos are contractual financial transactions in which an investor (e.g. governmental entity) purchases securities from a bank or dealer with a simultaneous contractual agreement by both parties to reverse the transaction at the same price (plus interest) at some mutually agreed-upon future date. The parties to the agreement (governmental entity and bank/dealer) are commonly referred to as counterparties. Repos are an integral part of an investment program of state and local governments and provide an alternative or supplement to local government investment pools, money market mutual funds and other money market instruments. However, like all investments, there are associated risks with repos, one in particular is the counterparty's credit risk. Such risk can be mitigated by the utilizing proper securitization practices. Common T}pes of Repos: Overnight Repo: refers to a repo that goes from one business day to the next business day. These repos have a negotiated fixed interest rate. Term Repo: refers to a repo agreement with a specified maturity of several days to several weeks. Term repos can be established for up to several years when the investment policy permits. The interest rate for the period is usually fixed. Open Repo: typically, has no maturity date, and renews daily until terminated by either one of the counterparties. The interest rate adjusts daily to the overnight rate and is averaged for the period of the repo. Flex Repo (flexible repurchase agreements): are often used for the reinvestment of bond proceeds used for capital projects. These repos are often for multi-year periods associated with a specific capital program. The flexible portion of the agreement permits multiple cash draw-downs to fund the expenditure requirement. Governments should ensure that these investments meet the liquidity requirements of the project and adhere to any bond covenants. Tri-Party Repo: occurs when a custodian (a.k.a. the tri-party agent) participates as an intermediary between the two parties (investor and lender) of the repo. The custodian administers and ensures the transaction occurs simultaneously and that necessary safeguards are in place to protect the underlying securities during term of the repa Benefits of Repos: Repos are safe when properly established and monitored; At times, provide higher yields than other money market alternatives; Provide diversification to other money market investments; and provides flexibility. Risks Associated with Repos: The repurchase agreement with an entity's counterparty is not properly established; The financial strength of the counterparties and value of the collateral are not properly monitored; The bank or dealer cannot buy securities back when repo is closed by governmental entity. The collateral for the repo is not liquid or easily marketable; and The value of the repo is not sufficient to cover the funds invested and interest earned. Mitigating the Risk: 31 Execute a SIFMA Master Repurchase Agreement including additional provisions specific to the governmental agency that is signed by a duly authorized officer with each counterparty; Establish financial strength criteria for counterparties and review financial statements at inception of relationship and at least annually. Some entities will limit counterparties to primary dealers; Allow only highly marketable, easily priced collateral priced at a minimum of 102% and monitoring their value at least weekly; and Have collateral settled delivery-versus-payment (DVP) at the entity's custodian or trustee for third-party safekeeping. Master Repurchase Agreement. A Master Repurchase Agreement is the contractual agreement a governmental entity enters into with a bank or counterparty. A form of the agreement, also known as a blanket agreement may be obtained from the website of the Securities Industry and Financial Markets Association (SIFMA) formerly known as The Bond Market Association (TBMA). However, governmental entities may wish to amend SIFMA's form of the Master Repurchase Agreement to suit the specificities of their respective transactions. A master repurchase agreement governs the repurchase transaction. An agreement should reflect the following characteristics: • Defines and provides detail as to the nature of the transaction; • Identifies the relationship of the parties to the agreement; . Establishes the parameters concerning the ownership and custody of the collateral securities for the term of the agreement; • May include right to substitute collateral during the term of the agreement; and . Provides for remedies in the event of default by either party. SIFMA has also published an optional substitution/termination provision to its Master Repurchase Agreement that allows the repo seller (bank or dealer) to retain effective control over the purchased securities, or the repo seller could elect to terminate the transaction prior to maturity on short notice to the repo buyer (government entity). Securitization Provisions. Safekeeping: In order to protect public funds, governmental entities should ensure proper securitization practices when utilizing repurchase agreements for investments. Safekeeping should be performed by an independent or third-party custodian. Duties of the custodian (direct or tri-party) should be outlined in a written safekeeping agreement. Collateral: The underlying security of a repurchase agreement is collateral. Collateral arrangements for repurchase agreements are short-term and liquid in nature. Typical collateral instruments are U.S. Treasuries (e.g. U.S. Treasury bills) and governmental agency securities (e.g. Farm Credit Banks, Home Loan Banks bonds). Governmental entities should be aware of the risk factors of the underlying collateral instrument for the repo and refer to their respective investment policies to verify if such collateral instruments are permissible to utilize for the repurchase transaction. The purchased securities (collateral) to collateralize the repurchase agreement should maintain a market value in excess of the value of the repurchase agreement (called margin, "haircut," or over securitization). Although governmental entities are not bound by the Financial Accounting Standards Board (FASB), FASB Statement No.140 affects the counterparties to repurchase transactions with governments. FASB Statement No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities," generally provides that if the repo buyer (i.e., government entity) has the right to sell or substitute the securities, then the repo seller (i.e., bank or dealer) does not have the right to substitute the securities or terminate the contract on short notice. The repo buyer will be obligated to record both the 32 securities, together with any obligation to return the securities. The repo seller will be required to reclassify the securities from a securities inventory or investment account to a securities collateral account on its balance sheet. Accordingly, the nature of the underlying repurchase agreement may change from a buy-sell transaction to a collateralized loan. This change of treating repurchase agreements as collateralized loans would make them illegal for local governments in many states. Recommendation. The Government Finance Officers Association (GFOA) recommends that state and local government finance officers develop policies and procedures to ensure the safety of repos. The following actions are recommended: Government entities and investment officers should exercise special caution in selecting and evaluating the creditworthiness of counterparties with whom they will conduct repurchase transactions and be able to identify the parties acting as principals to the transaction. Master repurchase agreements should be employed, subject to appropriate legal and technical review. Governments using the prototype agreement developed by SIFMA should include appropriate supplemental provisions regarding the types of securities, delivery, substitution, margin maintenance, margin amounts, seller representations, and governing law as contained in the GFOA-developed Considerations for Governments in Developing a Master Repurchase Agreement. Government entities' legal department should review SIFMA's optional substitution/termination provision in its master agreement to assure no loss has incurred (e.g. in event of a default). In jurisdictions where substitution of securities is permitted, a loss provision is provided that is intended to place the repo buyer in the same position it would have been had the repo seller not exercised the substitution/termination right. However, in jurisdictions where substitution is restricted, the effect of FASB Statement No.140 may be troublesome depending on the relationship established with the bank or dealer; the jurisdiction's position with respect to the change in accounting treatment of the transaction; and whether the government has the ability to avoid the restriction on substitution of purchased securities. Proper securitization practices are necessary to protect the public funds invested in repurchase agreements. Safekeeping duties should be performed by a third-party custodian in accordance with an executed agreement. The purchased securities (collateral) to collateralize the repurchase agreement should maintain a market value in excess of the value of the repurchase agreement (called margin, "haircut," or over securitization). Routine market valuing of the purchased securities during the term of the repurchase agreement should be a mandatory practice in order to ensure the purchased securities maintain sufficient market value to cover any default. A typical margin requirement for a short-term repo using US Treasuries or US agency securities as collateral is at least 102% and higher (typically 105%) for other securities. Consideration should be given to restricting the allowable securities that are used for collateral. Entities may prefer to only allow for security maturity and security types that are allowable for direct investment under their policy. If there is a default of the counterparty, the securities held as collateral of the repo will be owned by the entity, supporting the need to restrict the maturity and type of security to what is allowable under policy. References. "Do You Know Your Repurchase Agreements as Well as You Think?" GFOA's Treasuiy Management Newsletter, October 3, 2009, Volume 27, Number 10. An Introduction to Broker-Dealers for State and Local Governments, Second Edition, Sofia Anastopoulos, GFOA, 2008. "GFOA Best Practice, Securities Lending Programs" (1995, 2002, 2008). An Introduction to Collateralizing Public Deposits for State and Local Govei•nments, Second Edition, M. Corinne Larson, GFOA, 2006. GFOA Best Practice, Frequency of Purchased Securities Valuation in Repurchase Agreements (1999, 2003, 2006, 2008). Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. "GFOA Best Practice, Securities Lending Programs" (1995, 2002, 2008). 33 Sample Custodial Trust Agreement, GFOA. FASB Statement 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities," http://?,,T"T"T.fasb.org/pdf/fasl40.pdf, The Securities Industry and Financial Markets Association (SIFMA) http•I/www.sifma.org Approved by the GFOA's Executive Board, October 15, 2010. 34 Government Finance Officers Association Recommended PracticeAdopting Policies for the Frequency of Purchased Securities Valuation in Repurchase Agreements (1999, 2003, 2006, 2008 and 2010) (TIM) Background. A repurchase agreement (repo) is a transaction between a buyer/investor (e.g. government entity) and a seller/counterpariy (e.g. bank or securities dealer) in which the counterparty sells securities to the investor with a simultaneous agreement to buy the securities back from the investor on a future date. The securities are repurchased, ar bought back, at the same price plus the interest earned at the repo rate for the period of the repo. U.S. Treasury Securities (Bills, Notes, Bonds) and Government Sponsored Enterprise (GSE) (e.g. Fannie Mae, Freddie Mac) securities are the most common securities sold for repos involving government entities. Terms for repos can be overnight (from one business day to the next business day), for a specified number of days (term repo) or as a continuing open contract (open repo) to be closed at the request of either party. Public funds have used repos since the 1970s. In September 1996, the Securities Industry and Financial Markets Association (SIFMA) formerly, The Bond Market Association, published a revised version of its Master Repurchase Agreement, which previously had been amended in 1987. The revised agreement includes modifications designed to reflect the expansion of the repo market, changes in the law and "market participants' experience in exercising liquidation and similar closeout rights in the context of counterparty insolvency." (SIFMA Guidance Notes and Supplemental Guidance Notes). In March of 2003, the Governmental Accounting Standards Board (GASB) published Statement No. 40, Deposit and Investment Risk Disclosures, an amendment to GASB Statement No. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements which states that government entities should briefly describe policies regarding securitization and safekeeping for deposits and investments, including repos, that are related to the risks that must be disclosed under this Statement No.40. An important factor in managing the risk of default in repurchase transactions is the valuation of the purchased securities. For the term of the repo agreement, it is common practice for the counterparty to deliver purchased securities to the investor in a total value amount (market value plus accrued interest) that is equal to the investor's investment plus a margin percentage. The margin percentage, typically 102% for Treasury and GSE securities, protects the investor from a decline in the price of the purchased securities during the time the repo transaction is in effect. The value of the securities must be monitored frequently to insure the market value remains at least equal to the invested amount plus margin percentage in case of default of the counterparty. If the value of the purchased securities falls below the invested amount plus margin percentage, then the counterparty is required to deliver additional securities to the investor upon their request. The frequency of the valuation depends on several factors: • The maturity of the purchased securities, since longer maturities have greater price volatility; • The security types, since certain securities have greater price volatility; • Market volatility; and, • The margin percentage that is required by the investor; the lower the margin percentage, the more frequent the valuation of the purchased securities. Recommendation. Because the investar may need to liquidate the purchased securities in the secondary market in the event the counterpariy defaults on the repurchase agreement transaction, the Government Finance Officers Association (GFOA) recommends that government entities establish a policy and procedure for monitoring the value of the purchased securities in a repo transaction to insure that it does not drop below the value of the repo investment plus any required margin percentage. For maximum protection, government entities should value the purchased securities in their repo transactions to their eurrent market price on a daily basis. At a minimum, the purchased securities should be valued: • Weekly; 35 • Whenever there is a major increase in rates or market volatility is high; or, . Whenever a coupon and/or principal payment on the purchased securities is wired back to the countetparty. In order to facilitate the determination of market value, government entities should specify the acceptable securities for a repo transaction. Acceptable securities are those that have readily available pricing information from a reputable, independent pricing source. The independent source of pricing should not be a counterparty to the repo transaction and could include: • a broker or other financial institution that was not a counterparty to the transaction, • the custodial bank if the bank was not a counterparty to the transaction, . publicly available publications such as the Wall Street Journal, or • other pricing services for which a separate fee would be paid. When valuing securities, the purchased securities are valued using their current market price plus accrued interest to compute their total value. The total value is then compared to the repo value multiplied by any inargin percentage. If the total value of the purchased securities is less than the repo value plus the margin percentage, then the investor/buyer should request sufficient additional securities on a same-day or next- day basis from the counterparty to bring the total value up to the proper level. Further discussion of repos and recommended safeguards is provided in the references listed below. Public investors should consult their investment policy as well as state law and local ordinances for any further restrictions or guidance on repurchase agreements and valuation of purchased securities. References • GFOA Best Practice, "Bstablishing a Policy for Repurchase Agreements," (2003, 2006, 2008 and 2010), GFOA Committee on Treasury and Investment Management • GFOA Advisory, "Establishing a Policy for Reverse Repurchase Agreements," (2003, 2006, 2008 and 2010), GFOA Committee on Treasury and Investment Management • Do You Know Your Repurchase Agreements as Well as You Think?" GFOA's Treasury Management Newsletter, October 3, 2009, Volume 27, Number 10. • Introduction to Broker-Dealers for State and Local Governments, Second Edition, Sofia Anastopoulos, GFOA, 2008. • An Introduction to Collateralizing Public Deposits for State and Local Governments, Second Edition, M. Corinne Larson, GFOA, 2006. • Considerations for Governments in Developing a Master Repurchase Agreement, Second Edition, GFOA Committee on Cash Management, 2001. • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. • Master Repurchase Agreement, September 1996 The Securities Industry and Financial Markets Association (SIFMA), http://www.sifina.oriz . Governmental Accounting Standards Board (GASB), http://www.gasb.ory Approved by the GFOA's Executive Board, February 24, 2006. 36 Government Finance Officers Association Recommended Practice Collateralizing Public Deposits (1984, 1987, 1993, 2000, 2007, 2010) (TIM) I3ack2round. The safety of public funds should be the foremost objective in public fund management. Collateralization of public deposits through the pledging of appropriate securities or other instruments (i.e. surety bonds or letters of credit) by depositories is an important safeguard for such deposits. The amount of pledged collateral is determined by a governmental entity's deposit level and the policy or legal required collateral margin. Some states have established programs for the pooling of collateral for deposit of public funds. Federal law imposes certain limitations on collateral agreements between financial institutions and public entities in order to secure governmental entity deposits. Under certain circumstances, as are discussed in recommendations below, the Federal Deposit Insurance Corporation (FDIC) may void an otherwise perfected security interest and leave the governmental depositor. with only the right to share with other creditors in the pro rata distribution of the assets of a failed institution for the amount of deposits that exceed the FDIC coverage. Separate governmental "corporations" such as economic development corporations or water supply corporations, etc., do not fulfill the FDIC's definition of "public unit"' and therefore even accurately completed collateral defmition may not be honored by the FDIC on a bankruptcy. Recommendation. The Government Finance Officers Association (GFOA) recommends the use of a written agreement with pledging requirements as protection for state or local government's deposits. GFOA encourages govemmental entities to establish adequate and efficient administrative systems to monitor such pledged collateral, including state or locally administered collateral pledging or collateral pools. To accomplish these goals, GFOA recommends the following: 1. Governmental entities should implement programs of prudent risk control. Such programs could include a formal depository risk policy, credit analysis, and use of fully secured investments. In the absence of a state program for pooling collateral, public entities should establish and implement collateralization procedures, including procedures to monitor their collateral positions. Monitoring informs a public entity of undercollateralization, which may threaten the safety of an entity's deposits, and overcollateralization, which may increase the cost of banking services. Governmental entities howeuer can not and should not accept the liability for maintaining collateral levels which liability must fall to the financial institution. 2. Governmental entities/depositors should take all possible actions to comply with state and federal requirements in order to ensure that their security interests in collateral pledged to secure deposits are enforceable against the receiver of a failed financial institution. Federal law provides that a depositar's security agreement, which tends to diminish or defeat the interest of the FDIC in an asset acquired by it as receiver of an insured depository, shall not be valid against the FDIC unless the agreement: o is in writing; o was approved by the board of directors of the depository or its loan committee and2 o has been, continuously, from the time of its execution, an official record of the depository institution.3 3. Governmental entities should have all pledged collateral held at an independent third-party institution outside the holding company of their bank, and evidenced by a written agreement in an effort to satisfy the Uniform Commercial Code (UCC) requirement for control. The UCC states that the depositor does not have a perfected interest in a security unless the depositor controls it. Control means that swaps, sales, and transfers cannot occur without the depositor's written approval. o The value of the pledged collateral should be marked to market monthly, or more frequently depending on the volatility of the collateral pledged. Some state statutes do dictate a minimum margin level for collateral based on deposit levels (e.g., Georgia and Minnesota statutes require 110 percent). If not, the margin levels should be at least 102 percent, depending on the liquidity and volatility of the collateral pledged. State statutes also govern whether minimum margin levels apply to principal only or to accrued interest 37 as well. On a sale, accrued interest would be received. Governmental entities should review applicable state statutes and confirm compliance. o Substitutions of collateral should meet the requirements of the collateral agreement, be approved, by the entity in writing prior to release, and the collateral should not be released until the replacement collateral has been received. o The public entity should require reporting directly from the custodian. The custodian should warrant and be signatory to the agreement o Reporting by the third party institution should at a minimum be monthly. 4. The pledge of collateral should comply with the investment policy or state statute, whichever is more restrictive. Governmental entities should know and understand securities pledged as collateral. 5. Governmental entities that use surety bonds in lieu of collateral should limit the insurers to those of the highest credit quality as determined by a nationally recognized insurance rating agency. A thorough review of the terms of the bond is required. 6. The governmental entity should thoroughly review the terms and conditions of any letters of credit, including those issued by a federal agency or government sponsored enterprise. 7. The governmental entity should establish and follow procedures for on-going review of collateral. Note: As a result of the court case North Arkansas Medical Center v. Barrett, 963 F2d 780 (8th Cir. 1992), the FDIC issued a policy statement in March 1993 indicating that it would not seek to void a security interest of a federal, state, or local public unit solely because the security agreement did not comply with the contemporaneous execution requirement set forth in Section 13(e) of the Federal Deposit Insurance Act 12 U.S.C.1823(e). The policy statement was officially enacted by Section 317 of the Riegle Communiry Development and Regulatory Improvement Act of 1994 (Public Law 103-325). References: • GFOA Sample Security Agreement (long and short versions), www.gfoa.orjZ, 2009. • GFOA Sample Custodial Trust Agreement, www.Pfoa.org, 2006. • An Introduction to Collateralizing Public Deposits for State and Local Governments, Second Edition, M. Corinne Larson, GFOA, 2006. • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. • FDIC Act (12 U.S.C. 1811 et seq. and 12 C.F.R. Part 330.330.15 Public Unit Accounts (www.FDIC.gov) Approved by the GFOA's Executive Board, October 23, 2007. 38 Government Finance Officers Association Recommended Practice Using Mutual Funds for Cash Management Purposes (2003, 2006 and 2012) (TIM) Background. State and local government cash managers may benefit from investing public monies through mutual funds. Mutual funds are SEC-regulated investment instruments that pool and jointly invest of monies of multiple investors. Mutual funds are available for both fixed income and equity investments. Short-term liquid mutual funds that maintain a weighted average maturity of 60 days or less and have a stated aim to maintain investor shares with a constant one dollar ($1) Net Asset Value (NAV) are called money market mutual funds. While these funds seek to maintain a constant or stable NAV, this is not guaranteed. Investors of public monies should be aware of this. Other non-money market fixed income mutual funds generally have a longer-term weighted average maturity and have a fluctuating price or Net Asset Value. The Government Finance Officers Association (GFOA) has endorsed the use of money market mutual funds by public cash managers through the GFOA's model investment legislation for state and local governments. Portfolio safety, liquidity, diversification, and professional management are desirable features of these investment vehicles. The safety of assets, which is the foremost objective of public cash managers, may be impaired by market price risks associated with short-, intermediate-, and long-term bond funds. Recommendation. The GFOA recommends that state and local governments restrict their use of mutual funds for cash management purposes exclusively to money market mutual funds and short-term bond funds. Public cash managers should check applicable statutes to deternune if the use of money market mutual funds andJor short-term bond funds is permitted within their jurisdictions. Further, GFOA recommends that governments review and understand the fund's prospectus and statement of additional information to determine: • Portfolio composition; • Risk characteristics; • The duration and weighted average maturity of the mutual fund; • The reputation and experience of the investment company; • The performance history relative to appropriate benchmarks; • Total expense ratio; • Philosophy, strategies, and portfolio policies; • If the fund is rated by a nationally recognized rating agency; and • Whether the fund can meet the compliance requirements of the government's approved investment policy, for example, minimum ratings, maximum sector allocations, or specific criteria such as social investing. Cash managers should continue to monitor these characteristics as they may change over time. Further, during extremely low interest rate environments, mutual fund expenses may exceed yield. While fees are included in all mutual funds, these fees should be considered when investing in longer term mutual funds. Investors should assess the likelihood that the net yield (gross yield minus expenses) will be greater than zero--in some cases it may be more beneficial to own the underlying securities directly. GFOA recommends that governments consider money market mutual funds that are invested in Treasury, federal government agency, or first tier categories and possess the highest ratings available from at least one nationally recognized rating agency. Short-term bond funds should receive the highest credit quality ratings and the lowest risk ratings available. State and local government cash managers should exercise prudence and caution when investing in short-term bond funds. Bond funds investing in short- and intermediate-term instruments, with a varying NAV, may be legal and 39 appropriate investments in some jurisdictions when monies are not needed for near-term disbursement. However, mutual funds of an intermediate or long-term duration should be avoided by investors of short-term funds needed for liquidity purposes. As further precautions, investors should, at least quarterly, review the specific holdings of their mutual fund to know what the funds own. Prime money market funds that are AAA rated and hold A1+ paper may have foreign debt exposure that is not obvious. Also, all money market funds are required to disclose NAV monthly. Investors should at least quarterly review the NAV, which should remain close to $1.00. If the NAV varies below $0.995 (known as "breaking the buck"), investors should take appropriate action. This could include withdrawing all or part of the entity's shares in the fund. References • GFOA Best Practice, "Managing Market Risk in Investment Portfolios," 2007 and 2009. • An Inti•oduction to Investment Advisers for State and Local Governments, Second Edition, Sofia Anastopoulos, GFOA, 2007. • A Public Investor's Guide to Money Market Instruments, Second Edition, edited by M. Corinne Larson, GFOA, 1994. • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. Approved by the GFOA's Executive Board, January, 2012. 40 Government Finance Officers Association Recommended Practice Selection and On-Going Review of Investment Advisors for Non-Pension Fund Investment Portfolios (2003, 2007, and 2009) (TIM) Background. Many governments engage investment advisers for assistance in managing their non-pension fund investment portfolios. State and local government treasury and investment managers augment their investment programs by retaining investment advisers to perform various portfolio services, ranging from advice-only consultation to full discretionary management. In engaging an investment adviser, a government may benefit from professional portfolio management, risk management, potential audit savings, and continuity in the investment function, among other benefits. Most of these engagements have been positive. However, there have been some instances of inappropriate investment activities. The problems and reported losses have often resulted from governments hiring an adviser before they have clearly defined their needs, performed sufficient due diligence, and established proper controls and ongoing oversight. It is important for governments to take a careful and informed approach in the selection and use of investment advisers. When hiring an investment adviser, the government must determine the level of authority to grant the adviser. Advisory services will differ in the level of authority the government grants the adviser and the corresponding level of involvement the government retains in the investment process. Under a non-discretionary agreement, the adviser must obtain approval before executing any trade. All activity must comply with the guidelines of a government's investment policy, investment objectives, governing laws, and written or oral instructions. With a non-discretionary agreement the government is directly mvolved in investment transactions, whether to establish a comfort level with external management or the adviser, to learn from the adviser, or for some other reason. Under a discretionary agreement, the adviser can execute trades for the government without prior approval on each transaction. The adviser follows the same guidelines and restrictions as a non-discretionary adviser. With a discretionary agreement the government is less involved in the investment transactions, thus enabling staff resources to be directed to other duties, giving the adviser the ability to execute investment strategies more quickly, and allowing the government to hold the adviser totally responsible for the performance in the portfolia Under either agreement type, the government maintains control of its investment program by establishing the guidelines and policies to which the adviser must adhere. Recommendation. The Government Finance Officers Association (GFOA) recommends that state and local governments exercise caution and prudence in their selection of investment advisers. Because fiduciary responsibility for the safety and liquidity of government funds cannot be delegated to an investment adviser, the implementation of a safe and effective investment program must be carefully coordinated with the adviser. The GFOA urges state and local governments that are considering retaining an investment adviser to define and control the procurement process and assure periodic reviews of investment advisory services. Adhering to defined due diligence in selecting a qualified investment adviser and establishing proper controls will help a government achieve its objectives for hiring an adviser while protecting its funds and reducing risk to its reputation. Within the scope of Securities and Exchange Commission (SEC) regulations, state and local laws, and any other requirements, relationships with investment advisers should address the following: • Identification of adviser responsibilities. Responsibilities of the investment adviser should be identified before the selection process. During the process these shouid be cleariy defined and communicated. 41 • Impartial procurement. The responsible government official or the goveming board should appoint a consultant and/or internal review committee to conduct the search process. Such staff, consultant, and/or review committee members should be independent of any interest in or relationship with any investment advisory firm. The procurement process should be competitive and merit-based. • On-going review. Investment advisory services should be reviewed on an on-going basis. The on- going review, monitoring and evaluation of the investment adviser are as important as the due diligence undertaken during the initial selection process. The responsible government official or the governing board and/or review committee should determine the scope and frequency of such review process. Criteria - The responsible government official or the governing board and/or review committee should determine the criteria to be used in the selection process. Identifying relevant criteria upfront promotes transparency in the selection process. Assigning weightings to these criteria can create a workable method to rank or quantify the importance of each. Criteria should include: • the investment adviser's understanding of the government's investment program, objectives and constraints • the investment adviser's background, including the experience, resources, and qualifications of the firm in general, that of the individuals assigned to handle the government's account, and the firm's experience in managing state and local government operating funds • the investment adviser's recommended approach to management of the portfolio: Is this approach • appropriate for the government? • fees and fee basis Risk Control - As part of the procurement process and prior to a final decision on the investment adviser, the government entity should have made decisions regarding its risk tolerance and developed corresponding risk control requirements, including: • the level of discretion afforded the investment adviser • prohibitions against self-dealing for trade execution • competitive trade execution • trade confirmations • delivery versus payment trade settlement • independent third-party custody of securities (no investment adviser custody) • timely reconciliations of trade confirmations and custodial statements • monthly reporting that complies with industry standards and local requirements • ongoing compliance reviews • allowance for independent audits Selection Process - Once the government defines the services it seeks to obtain and the criteria it will use to make its selection, a Request for Proposal (RFP) is useful to gather information for the decision-making process. Information that might be part of the RFP include: • SEC licenses • quantitative information (e.g., financial stability and performance review) • organizational structure of firm including any business affiliations • experience and depth of personnel in firm, including turnover and single versus team management • reporting standards (Global Investment Performance Standards or GIPS) • firxn-specific investment philosophy and portfolio management strategies • trading process 42 interviews with finalists understanding of current or historic regulatory censure or litigation The sources for potential candidates may include: • references &om other governments • consultants' database(s) on investment advisory firms • association databases • industry reports and articles • marketing materials Final decisions will require an objective compilation and analysis of the results of the RFP. Most importantly, the investment adviser and the services offered must match the needs of the particular government entity. Advisory Agreement - A well-constructed agreement containing specific instructions concerning objectives and risk parameters, allowable investment instruments and strategies, and required reporting procedures is critical to a successful outcome. After a recommendation regarding the selection of an investment adviser has been made, the contractual agreement should include: • scope of services • appointment of the investment adviser and fiduciary responsibilities • establishment of account responsibilities • defmition of accounts and custody • definition of discretionary or non-discretionary services with appropriate limitations • definition of standards (Prudent Expert) • establishment of objectives, restrictions and benchmarks • definition and processing of transaction procedures in accordance with policy including brokerage limitations • representations by entity and investment adviser • determination of reasonable liability insurance for errors and omissions • establishment of invoicing and payment • procedure for termination by either party • specifications related to nondiscrimination in contracting and ethics rules • certification of the government's policy by the investment adviser • all provisions of the RFP as part of the contract References. • Investing Public Funds, Second Edition, Girard Miller with M. Corrine Larson and W. Paul Zorn, GFOA, 1998. • An Introduction to Investment Advisers for State and Local Governments, Sofia Anastopoulos, GFOA 2007. This publication includes a sample Request for Proposal (RFP) for investment advisory services and a sample investment advisory agreement. • An Elected Official's Guide: Investing, second edition, Sofia Anastopoulos, GFOA, 2007. • GFOA Sample Request for Proposal for Investment Advisory Services, GFOA, 2007. Approved by the GFOA's Executive Board, October, 2009. 43 Government Finance Officers Association Recommended Practice Use of Derivatives and Structured Investments by State and Local Governments for Non- Pension Fund Investment Portfolios (1994, 2002, and 2010) (TIM) BacklZround. A derivative product is a financial instrument created from, or the value of which depends on (is derived from), the value of one or more underlying assets or indices of asset values. Derivatives may include forwards, futures, options, swaps (currency and interest rate), caps, floars, collars and rate locks. Structured investments are financial instruments that are created (structured) through pooling or redistributing assets, tranching liabilities (backed by pools of assets) and/or separating the credit risk of the collateral assets from the originating entity. Examples of such instruments commonly used by governmental entities may include asset backed securities, mortgage backed securities, various collateralized obligations and credit derivatives among others. Advisorv. The Government Finance Officers Association (GFOA) advises state and local government finance officers to exercise extreme caution in the use of derivatives and structured finance products. Governmental entities must learn about and understand the potential risks and rewards of derivative and structured products, before deciding if they should be used. Governments must understand fully the characteristics of these instruments and have the ability (internal staff and expertise) to determine the fair market price and be aware of the legal, accounting, credit and disclosure risks involved. Governments should consider the following factors in determining whether to use derivatives and structured investment products: 1. Legality. Governmental entities should understand that state and local laws may not specifically address use of these products. Factors to consider include: the constitutional and statutory authority of the governmental entity to execute derivative contracts or to buy structured finance products, the potential for violating constitutional or statutory provisions limiting the governmental entity's authority to incur debt resulting from the transaction, and the application of the governmental entity's procurement statutes specifically to derivative transactions. 2. Appropriateness. Governmental entities must observe the objectives of principal preservation, liquidity, and return within legally allowable investments. Judicious asset and liability management policies help achieve these objectives while managing risk. Characteristics of some derivatives and structured investment products that may preclude their use and make them inappropriate include high price volatility, illiquid markets, valuation difficulties, insufficient market history, high degree of leverage, keen monitoring and modeling system requirements, and the need for a high degree of sophistication to manage risk. Governmental entities should be aware of all the risks associated with the use of derivatives and structured investment products, including credit, counterparty, market, prepayment, liquidity, settlement, custodial and operating risk. Regarding the difficulty in valuing derivatives and structured investment products, governmental entities should understand that there may be little or no pricing information or standardization for some derivatives and structured investment products. Competitive price comparisons are recommended before entering into a transaction. Even in cases of competitive pricing, because valuations of such products are based on highly sensitive models and not on actual markets, changes in the underlying assumptions may severely impact asset values. In addition to determining legality and appropriateness, governmental entities should analyze the materiaiity of a iransaction to cietermine if it might aftect a bonci or other credit-related raiing of such entity. Rating agencies should be notified if required. 44 3. Procedures and Internal Controls. Governmental entities should establish internal controls for use of derivatives and structured investment products to ensure that risks involved with these are adequately managed. Such procedures should include: • Creating an oversight board and establishing upfront criteria for use of derivatives and/or structured securities; • Comprehensive derivatives and structured securities policy (evidencing legal authority, listing authorized and prohibited types of derivatives and structured investments, identifying guidelines for counterparty selection, limiting maximum permissible amounts and specifying means of determining such maximums); • Review with ratings agency(ies) impact of derivatives use on governmental entity; . Written statement of purpose and objectives for derivative use, • Written procedures for monitoring of derivative instruments and structured investment products, including how often they will be priced and what pricing services will be used: • Periodic training for managers and access to technical resources to oversee derivative and structured investments: • Sufficiently detailed recordkeeping to allow governing bodies, auditors, and examiners to determine if the program is functioning in accordance with established objectives. Managers should report regularly on the use of derivatives to their governing body and appropriate disclosure should be made in official statements and other disclosure documents: • Reporting on derivative use in accordance with generally accepted accounting principles. Because of the complexity of these instruments, governments should consult with public accountants at an early point to determine if specialized reporting may be required: • Required documentation of stress testing and scenario analysis of derivatives and structured investment products. Every possible effort should be made to determine worst case scenarios when using derivatives or structured products, as well as likelihood or probability of these outcomes and the government's ability to weather them; and • Procedures for evaluation and review on a periodic basis. 4. Role of External Parties. Governmental entities should know if their broker-dealers are merely acting as an intermediaries or are taking a proprietary positions in derivatives or structured investment product transactions. Possible conflicts of interest should be taken into consideration before entering into a transaction. Governmental entities should exercise caution in the selection of broker-dealers or investment advisers. They should confirm that these vendors are knowledgeable about, understand and provide disclosure regarding the use of derivatives and structured investment products, including benefits and risks. Governmental entities are responsible for ensuring appropriate safeguards are in place when derivative or structured investment product transactions are conducted by a third party acting on behalf of the governmental entities. The GFOA reiterates the need for governments to exercise extreme caution when considering derivative products for their investment portfolio. It is important to emphasize that these instruments should not be used for speculation. Governmental entities must learn about and understand the risks and rewards of derivative and structured investment products in order to properly evaluate and manage. Governmental entities should consider the use of derivatives and structured investment products only when they have attained a sufficient understanding of the products and the expertise to manage them. Certain derivative products and structured investment products may not be appropriate for all governmental entities. Ultimately, it is the responsibility of each governmental entity to determine what constitutes a derivative and/or a structured investment, and what is allowable by statute and policy. 45 References. A Public Investor's Guide to Money Market Instruments, Second Edition, edited by M. Corinne Larson, GFOA, 1994. GFOA Best Practice: Use of Debt-Related Derivatives and Development of Derivatives Policy, 2010, GFOA's Committee on Governmental Debt Management. GFOA Derivatives Checklist, 2010, GFOA's Committee on Governmental Debt Management. Approved by the GFOA's Executive Board, March 5, 2010. 46 Government Finance Officers Association Recommended Practice Mark-to-Market Reporting Practices for State and Local Government Investment Portfolios (1995, 2000, 2003, 2005, and 2008) (CASH) Background. Market risk is significant in public investment portfolios. Due to price volatility, valuing investments at their current price is necessary to provide a realistic measure of a portfolio's true liquidation value. Over time, reporting standards for state and local government investment portfolios have been enhanced so that investors, governing bodies, and the public remain informed of the current market value of the portfolio. Regular disclosure of the value of a governmental entity's investments is an important step to furthering taxpayer and market confidence in state and local government investment practices. The Governmental Accounting Standards Board (GASB) has also recognized the need to report investments at fair value at fiscal year end. Government officials should be aware of state, local, accounting, and rating agency requirements regarding mark-to-market practices. Recommendation. The Government Finance Officers Association (GFOA) recommends that state and local government officials responsible for investment portfolio reporting determine the market value of all securities in the portfolio on at least a quarterly basis. These values should be obtained from a reputable and independent source and disclosed to the governing body or other oversight body at least quarterly in a written report. The independent source of pricing should not be one of the parties to the transaction being valued and could include: • a broker or other fmancial institution who was not a counterparty to the xransaction, • the custodial bank if the bank was not a counterparty to the transaction, . publicly available publications such as the Wall Street Journal, or other pricing services for which a separate fee would be paid. It is recommended that the written report include the market value, book value, and unrealized gain or loss of the securities in the portfolio. If there is a significant event in the local or national economy that might affect the value of the portfolio, then a mid-term valuation of the portfolio should be conducted. Governments that employ a more active portfolio management style should consider more frequent marking to market and reporting. References An Elected Official's Guide to Investing, Sofia Anastopoulos, GFOA, 2007. Investment Procedures and Internal Controls Guidelines; Government Finance Officers Association; May, 2003. Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. GASB Statement 31 and Implementation Guide, Accounting and Financial Reporting for Certain Investment and for External Investment Pools; March, 1997. Approved by the GFOA's Executive Board, February 22, 2008. 47 Government Finance Officers Association Recommended Practice Securities Lending Programs for Non-Pension Fund Portfolios (1995, 2002 and 2008) (CASH) Background. Where permitted by state statutes, governmental entities participate in securities lending programs as a way of earning incremental investment income on non-pension fund assets. In securities lending programs a governmental entity lends securities such as U.S. Treasury, agency, or government sponsored enterprise (GSE) securities, from its investment portfolio, in return for collateral. The collateral is often cash, which is then reinvested. A securities lending transaction has many of the same characteristics as a reverse repurchase transaction. In both, securities are lent to a counter party with the governmental entity receiving collateral to be reinvested. A major difference is that securities lending programs are ongoing whereas reverse repurchase transactions are typically one-time or non-recurring. Broker-dealers typically are the borrowers in securities lending programs. They use the borrowed securities primarily to cover fails (the non-delivery of securities expected to be delivered on a date certain) and short sales (the sale of securities not presently owned by the seller in order to take advantage of an expected lower market price), and to execute arbitrage transactions. Accordingly, securities lending programs play an important role in maintaining orderly markets. The securities loaned are collateralized for the term of the loan and marked-to-market daily. Collateral may be cash or other securities, and is usually 102% or more. This over collateralization reduces the lender's exposure to the borrower. The lender retains the economic benefit of owning the securities including the coupons paid during the period the securities are loaned. Cash collateral usually has a borrowing rate less than the overnight money market funds rate. The difference between the borrowing rate and the reinvestment rate produces a net gain in interest income. The resulting income is subsequently split between the participants in the securities lending program. Because securities lending programs are not primary activities for most participants, governmental entities may depend on the expertise of a lending agent. Typically, the master trust, custodial and safekeeping banks or asset managers act as lending agents or intermediaries, facilitating securities lending programs for their customers. Typical Steps Typical steps are illustrated in the graphic that follow this recommended practice. 1. Governmental entity works through lending agent to lend securities 2. Broker-dealer borrows securities 3. Collateral (for securities loan) is delivered at predetermined level 4. Simultaneous to receipt of the collateral, securities are delivered to the borrower 5. Cash collateral is reinvested 6. A negotiated portion of the cash collateral reinvestment interest is paid to the borrowing broker- dealer as a rebate, typically a market rate. In the case of cash collateral, the lending agent negotiates the interest rate on the collateral paid to the borrower of the securities, which is called the rebate rate. In the case of non cash or securities collateral, the lending agent negotiates a fee paid by the borrower. 7. The difference between what is earned on the cash collateral investment and the rebate rate is the gross spread. The lending agent retains a portion of the gross spread as its fee and credits the remainder to the owner of the securities as negotiated between the governmental entity as the lender and the lending agent 8. The governmental entity keeps the remaining reinvestment income 9. The value of the collateral is marked to market daily to ensure full collateralization 10. At the end, borrower returns securities to governmental entity via lending agent and simultaneously the lending agent returns collateral to borrower. Risks While securities lending programs are considered relatively low risk, there are risks. Lending Risks • Counterparty or Borrower (Broker-Dealer) Risk This is the risk the borrower will not return the securities borrowed at the end of the loan term. Borrowers must have high credit ratings from the rating agencies, and, more importantly, must meet certain other financial criteria as specified by the lending agent or the governmental entity in the securities lending agreement. A part of the 48 counterparty risk is that the broker dealer as borrower fails to provide additional collateral on a daily basis or as required • Concentration Risk. This risk is related to and amplifies borrower risk. • Collateral Risk. The lender (governmental entity) does not have enough collateral to cover the market value of borrowed securities. Reinvestment Risk • Interest Rate Risk is the risk that the yield on the invested collateral is less than the rebate paid to the borrower. • Maturity Risk is the risk that the maturity of the collateral investment differs from the maturity of the loaned securities (more than by a specified range). Operational Risks These risks generally involve problems with administrative or logistic issues of the program. These may include problems with settlement, corporate actions, dividends or interest, marking to market, monitoring, billings reporting. Typically, a lending agreement provides that counterparty (broker-dealer) credit risk, broker-dealer default risk, and collateral maintenance are risks undertaken by the lending agent. However, indemnification provisions vary. The government as the lender of the securities often determines what counter-party is acceptable, the size of the investment program, and the type of securities used, generally reflected in the split of the investment proceeds. Risks typically borne by the lender or governmental entity include: lending agent credit risk, lending agent default risk, and collateral investment risk. Liquidity requirements are often accepted and guaranteed by the lending agent upon one day's notice, as substitution of the lending client in large lending programs is easily accomplished and essentially risk-less. Programs that require the client to undertake responsibility for managing the liquidity present greater risks and require that the client place limits on the amount of the portfolio which may be put on loan. The term of the securities on loan and the reinvestment of the proceeds must be carefully established by the client and strictly managed. Recommendation. While investment strategies that include securities lending programs are not inherently risky when employed judiciously with appropriate precautions and controls, the Government Finance Officers Association (GFOA) urges state and local government officials to exercise caution in their use of securities lending programs. Only governmental entities that have expertise and resources should engage in securities lending programs. Prior to participating in a securities lending program, government finance officers should: • Determine whether securities lending is pertnissible under state statute and the governmental entity's written investment policy; • Exercise special caution in selecting and evaluating the creditworthiness of lending agents and counterparties to the securities lending program • Consider the lending agent's experience • Implement a written lending agreement subject to appropriate legal and technical review • Pay special attention to • indemnification provisions • the investment guidelines and terms of the lending, including the maturity of loans and the types of securities purchased • the liquidity provisions and risks • the frequency of marking the collateral to market • the agreement for the split of investment proceeds • Ensure independence of audit process. Avoid possible risk from number of parties involved (government, dealer, and custodian) by having signed contract and requiring proper reporting procedures. • Consider the resources required to monitor compliance with the agreement. References • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998 49 • GFOA Recommended Practice, Repurchase Agreements & Reverse Repurchase Agreements (2003 and 2006) • GFOA Recommended Practice, Presenting Securities Lending Transactions in Financial Statements (1998) Approved by the GFOA's Executive Board, October 17, 2008. 50 Government Finance Officers Association Recommended Practice Using Commercial Paper in Investment Portfolios (2001, 2007, and 2009) (TIM) Background. Commercial paper (CP) is a short-term, unsecured promissory note issued by corporations typically used as a source of working capital, receivables financing, and other short-term financing needs. CP has maturities ranging anywhere from 1 to 270 days. Because of the short maturity, federal law exempts CP from registration with the Securities and Exchange Commission. As an unsecured debt issued by companies, commercial paper carries default risk for investors as compared to U.S. Treasury or U.S. government agency or instrumentality debt. Originally the CP market was available as a funding source to only the highest credit quality entities. However, innovations such as liquidity programs, credit enhancements, and various special legal structures have made CP a viable financing alternative for entities with lower credit ratings. Accordingly, while investors traditionally relied on the financial strength of the issuing entity, increasingly investors must also evaluate the credit support backing an issue as well as the legal structure of the issuer. Different Structures of Commercial Paper In addition to traditional corporate issued commercial paper, there are other types of commercial paper as follows: Asset backed commercial paper - Asset backed commercial paper (ABCP) programs gained popularity partly as a response to the unsecured status of traditional commercial paper but also as a way for fmancial institutions to more efficiently finance their receivables through off-balance sheet vehicles. With ABCP, certain assets such as credit card receivables or auto loans and their cash flows, support a specific CP issue. ABCP is usually sold through a conduit, a special purpose vehicle (SPV) established to facilitate the financing. There are different structures for such conduits. Some SPVs pool the assets of many entities from various industries. These multiseller ABCP programs issue CP backed by the cash flows from all the underlying assets. The goal of such multiseller Programs is to enjoy the diversification from multiple sellers of various industries. Single seller ABCP programs are backed by the assets of one entity, for example a corporation. Consequently, they lack the diversification of multi-seller programs. Historically, such ABCP may have had higher credit ratings than the seller company itself. However, such homogenous assets may pose concentration risk. Most ABCP programs are partially supported programs, in which the program sponsor or guarantor may legally be obligated to cover only a certain percentage of defaults of the underlying assets or cover limited liquidity requirements related to delinquencies of these underlying assets. There are several programs still in existence that are fully supported, in which the program sponsor is obligated to reimburse CP investors regardless of delinquencies or defaults except in the case of a bankniptcy of the program. Structured investment vehicles (SIVs) - A relatively newer structure that issues CP is the structured investment vehicle (SIV). SIV programs have evolved away from the traditional funding purpose of CP. Some SIVs take advantage of spread differentials in fixed income securities, eaming interest rate arbitrage profits. SIVs may invest in various asset categories, some of which are difficult to value because they do not trade on any active market. Lacking such a market, their value is based on models that are sensitive to a number of assumptions. Liquidity Notes - In addition, other variations of CP have been introduced in the market in recent years, including extended liquidity notes (also called extendible or structured notes) in which the maturity of the notes may extend beyond their original maturity date in the case of a default. Other Features of Commercial Paper Nationally recognized statistical rating organizations (NRSROs) routinely rate commercial paper issues and 51 regularly review the strength of the credit quality of the issue. In some instances, CP programs have been downgraded rapidly by the NRSROs. CP may be sold directly to investors by the issuing company (direct issued) or by the underwriting brokerage firm (dealer placed). Many governments invest in CP as a short-term investment for funds not immediately required, and to provide diversification and competitive rates of return Typically, governments purchase CP with a buy and hold approach until maturity strategy. While a secondary market exists that can be utilized for sales prior to maturity, there have been periods of disruption due to either issuer-specific events or as a result of a broader market wide disruption. Changes affecting individual issues as well as the overall market conditions can take place so quickly that investors do not have the opporiunity to sell the security. For these reasons, CP is generally less liquid than U.S. Treasury or U.S. government agency or instrumentality obligations. During market disruptions, investors face the scenario where issuers will be unable to issue new CP to refinance the maturing commercial paper and the secondary market disappears. To mitigate this risk, CP is usually backed by bank lines of credit. State statutes vary as to the ability and limits of governments to purchase CP. Recommendation. The Government Finance Officers Association (GFOA) recommends that if a government chooses to use CP in its investment portfolio, it cautions government investors to: 1) verify whether commercial paper is allowed under state statute and their investment policy and 2) determine whether they have the expertise to understand, evaluate and monitor commercial paper before deciding to include commercial paper as part of a diversified investment portfolio. Government investors should regularly evaluate whether the incremental yield associated with commercial paper justifies the additional credit and liquidity risk associated with this type of security. Governments choosing to use CP should develop policies and procedures to manage the associated risks. Government investors should consider: • conducting their own ongoing financial reviews of commercial paper issuers, including periodically reviewing balance sheet information for issuers of traditional CP as well as reviewing monthly or quarterly pool reports for ABCP. • diversifying by issuer, industry sector or commercial paper type • placing limits on percentage of portfolio comprised of commercial paper • placing limits on percentage of commercial paper issued by any one issuer, industry, or type • restricting investments to shorter maturities that reflect the most active part of the commercial paper market and provide the least opportunity for credit quality changes • restricting investments in sectors or industries experiencing turmoil, volatility or changes such as maj or • regulatory or technological changes • recognizing different types of commercial paper, such as corporate promissory notes, asset-backed commercial paper (both multi-issuer and single-issuer programs), SN issued ABCP (funding paper, or extendible paper) and determining the appropriateness of each for the government's portfolio • limiting to first tier short-term credit ratings by two NRSROs (for example, A-1, P-1, F-1 or better) • evaluating underlying liquidity support and credit enhancements such as bank lines of credit or msurance • maintaining information on each commercial paper issue in the portfolio • monitoring ratings and ratings outlook on a frequent basis • establishing a short pre-approved list of CP programs that investment staff is limited to purchasing, which is monitored frequently 52 References • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. • Sample Investment Policy, GFOA, 2003. • An Elected Official's Guide: Investing, Second Edition, Sofia Anastopoulos, GFOA, 2007. • "Commercial Paper in Today's Credit Markets," Treasury Management, GFOA, December 2007. Approved by the GFOA's Executive Board, October, 2009. 53 Government Finance Officers Association Recommended Practice Diversification of Investments in a Portfolio (2002 and 2007) (CASH) Background. Government investors have a fiduciary responsibility to protect public funds and to prudently manage their investments in order to achieve the investment objectives of safety, liquidity, and return. Generally, greater risk in a portfolio increases the opportunity for higher returns. However, greater risk also increases the volatility of the returns, which is another definition of risk. The effective management of risk in a portfolio is critical for achieving an entity's investment objectives. A useful strategy for managing risk in a portfolio is through diversification. To this end, a government should establish a target risk profile. In establishing a risk profile, an entity considers its investment objectives and constraints, risk tolerances, liquidity requirements and the current risk/reward characteristics of the market. The profile should be adjusted as needed to changes in any of those considerations. Such a profile provides a framework and discipline for making individual investment decisions that manage the risk and create the structure of a portfolio. The government entity's risk profile, in turn, helps it determine appropriate levels of diversification. Diversification of investments in a portfolio is based on the difFerent types of risk - primarily interest rate or market risk, liquidity risk and credit risk. Diversification is achieved by investing in a variety of securities with dissimilar risk characteristics that respond differently to changes in the market. Areas where diversification can be achieved include the maturity distribution in a portfolio (market and liquidity risk), sector allocation (credit risk), issuer allocation (credit risk), and the structures (noncallable vs. callable) of securities (market and liquidity risk). Recommendation. The Government Finance Officers Association (GFOA) recommends that state and local governments properly manage the risk in their portfolios to achieve their investment objectives and comply with their investment constraints. GFOA further recommends the use of diversification in a portfolio as an important strategy for managing risk. Diversification strategies can be implemented through the following steps: • carefully and clearly defining what the objectives safety, liquidity and return mean to the government entity . preparing a cash flow projection to determine liquidity needs and the level and distribution of risk that is appropriate for the portfolio • considering political climate, stakeholders' view toward risk, and risk tolerances • ensuring liquidity to meet ongoing obligations by investing a portion of the portfolio in readily available funds, such as Local Government Investment Pools (LGIPs), money market funds, or overnight repurchase agreements • establishing limits on positions in specific securities to protect against default risk . establishing limits on specific business sectors . developing strategies and guidelines for investments in single class of securities (such as commercial paper or bankers acceptances) • limiting investments in securities that have higher credit and/or market risks (such as derivatives) • limiting particular structures (i.e. optionality, amortizing components, coupons, issue sizes); • defining parameters for maturity/duration ranges • establishing a targeted risk profile for the portfolio based on investment objectives and constraints, risk tolerances, liquidity requirements and the current risk/reward characteristics of the market. References • GFOA Sample Investment Policy, 2003. • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. • An Elected Official 's Guide to Investing, M. Corinne Larson, GFOA, 1996. AppYOVed by the GFOA's Executive Board, March 2, 2007. 54 Government Finance Officers Association Recommended Practice Managing Market Risk in Investment Portfolios (2007 and 2009) (TIM) Background. Fixed-income securities are investment instruments that provide a stream of cash flows in the formof coupon and principal payments. Typically, they are issued with maturities ranging from one year to 30 years.A security's stated maturity is the date on which its fmal interest and principal payments are due. There areseveral general structures for fixed-income securities: • Bullet securities - the principal amount will be paid in one payment at maturity. They are issued without any option that could cause redemption prior to the stated maturity; • Securities with options - issued with either a call or put option that could change the stream of cashflows. Call options give the issuer the right to redeem bonds prior to maturity in accordance with the call schedule. Securities with call options have greater volatility than bullet securities. Issuers of callable securities typically call these when interest rates have fallen, causing investors to lose the higher interest rate in periods when such rates are hard to replace. Put options give the investor the right to submit a bond for redemption prior to maturity in accordance with the rules of the put. Buyers pay a premium for the put option. Typically, investors of putable securities "put" these when interest rates have risen, gaining the opportunity to reinvest their principal at the then prevailing higher market rates; and • Amortizing securities - pay a portion of the principal with each interest payment throughout the life of the bond (e.g. - mortgage securities, asset-backed securities). They have a stated final maturity and an average maturity, and can also have early redemption options. Market risk refers to the effect that changing interest rates have on the present value of a fixed-income security, and can also be referred to as interest rate risk. There is an inverse relationship between interest rates and price. As interest rates rise, the value of a security falls. The reverse is true as interest rates fall. The extent of price change is a function of the length of term to maturity, the structure of the security (type of embedded options), the level of interest rates, and the size of the coupon. Of these factors, the most important are the length of term to maturity and the structure. Generally, the longer the maturity of a security, the greater its market risk as measured by price volatility. Longer maturities have greater volatility because as the time to maturity increases, each change in interest rates has a greater impact on the present value of a security. The size of a security's coupon also affects price volatility. When analyzing securities with the same maturity, securities with low coupons will have greater price volatility than securities with high coupons. The security with the greatest price volatility for any given maturity is a zero coupon security. Many government investors employ a buy-and-hold approach, so that changes in a security's market value are never realized and the full face value of the security is received upon maturity. Despite this, market value must be managed for three reasons: 1. The total return of the portfolio is computed and compared to the total return of the portfolids benchmark to evaluate portfolio performance. 2. The market value of an entity's investments must be disclosed in its annual fmancial report. Often an entity will include it in more frequent reports to the governing body and public. Accordingly, an entity must be able to understand and explain changes in the market value of its portfolio. 3. C?rcumsta_n_ces may arise i?? Which ar_ entity is forced to sell a security beferP its mati!+-ity. In such instances, a government entity may have to accept a loss on a security that it had never planned to sell. Market risk is a critical risk for a government investor. Therefore, it is necessary to understand fully the 55 maturity structure of securities before investing. To ensure appropriate liquidity and to reduce interest rate risk in operating portfolios, most state and local governments: a. Limit the maximum maturity for securities they purchase; b. Ensure that funds are available for scheduled disbursement by developing cash flow projections and properly structuring the maturities in a portfolio according to the expected cash flows; c. Ensure that a reasonable liquidity buffer is maintained to meet unexpected disbursements; and d. Ensure that a security can be sold with ease and minimal cost (price disruption) to the investor by investing in high grade, actively traded fixed-income securities. Maximum maturity and weighted average maturity limits relate directly to an entity's statute and policy constraints, investment objectives and cash flow projections. Although setting maximum maturity constraints may help limit the market risk in a portfolio, it is not generally considered to be the most effective way for managing market risk and understanding the potential price volatility of either an individual security or an entire portfolio. MaYimum maturities allow the portfolio to take advantage of longer securities and the weighted average maturity protects against over-extension of the portfolio in those longer maturities. A widely used measure of market risk in the investment industry is modified duration. Durations can be obtained from professional market resources such as Bloomberg. For governments without access to these resources, broker-dealers may send documentation of the durations. Duration is more comprehensive and accurate in measuring market risk than the maturity of a security for two important reasons. First, duration takes into consideration all cash flows (interest and principal payments) of a fixed-income security using their present values. Maturity as a market risk measure only considers the principal payment of a security using its future value. Second, modified duration is a multiplier that measures the approximate percentage change in the value of a security or portfolio given a 1%(100 basis points) move in interest rates. For example, if a security has a modified duration of 1.74 and interest rates rose by 50 basis points, the security would experience approximately a-0.87% change in value. Formula and calculation: %change in market value =(-1)* x(modified duration) x(basis points change in yield/100) -o.s7°io = (-i)X (1.74) x (+sonoo) * multiplied by -1 because of inverse relationship between price and interest rates With this type of price volatility analysis, a government investor can determine more accurately the amount of market risk in a security or portfolio. Weighted average maturity and weighted average duration in a portfolio are calculated using the maturity and duration values of all the securities in a portfolio. Weighted average maturity allows a government to verify compliance with investment constraints since most investment policies and state statutes have maximum weighted average maturity limitations. Weighted average duration is considered indush-y wide as an acceptable measure of market risk in a portfolio. As such, it can provide the government investor with valuable information for managing the market risk in a portfolio. The Governmental Accounting Standards Board (GASB) in GASB Statement No. 40 requires a disclosure of all risks associated with a government entity's portfolio, including market risk, including market rate or interest rate risk. Weighted average maturity and weighted average duration are two of five accepted methods for disclosing a portfolio's market risk. (A description of the other three is beyond the scope of this Best Practice.) In accordance with the GASB fair market value reporting requirements in GASB Statement No. 31, a government entity's portfolio could show unrealized losses or gains for any reporting period. 56 Recommendation. State and local governments should comply with state statutes pertaining to investing public funds along with all investment policy parameters. Fixed income investing involves a certain level of market risk. Investars should be aware of their risk tolerance and conf`irm that the market risk they assume is within this tolerance level. The Government Finance Officers Association (GFOA) makes the following recommendations to government investors with respect to managing market risk: 1. Develop and update cash flow projections to determine: a) the dollar amount of the portfolio that needs to remain liquid (liquidity buffer) to meet disbursement obligations within a six-month period (shortterm), b) what dollar amount is required within the next 6- 12 month period, and c) whether there is a`core' of funds available for longer-term investing. 2. Structure the portfolio to provide sufficient liquidity for anticipated cash flow requirements by continuously investing a portion of the portfolio in money market type investments such as local government investment pools, money market mutual funds, overnight repurchase agreements and money market securities. 3. Understand fully the maturity structure of a security. Prior to purchase, the government should confirm compliance with its investment constraints and overall investment strategy. If a security has options associated with it such as call options, the structure of the option should be analyzed to determine its potential impact on market risk through an analysis such as option adjusted spread (OAS) analysis. The stated maturity date should always be used to determine compliance with maximum maturity constraints, not any potential call dates unless an official announcement of a call has been released. 4. Adopt weighted average maturity limitations and/or weighted average duration targets, consistent with the government's investment objectives, constraints, cash flow needs and risk tolerances. The weighted average maturity limitations is used to limit the liquidity and market risk in a portfolio consistent with the constraints in the governing state statutes and the investment policy. The weighted average duration targets can be used to manage market risk in a portfolio. 5. Do not directly invest in securities with maturities greater than the limits imposed by investment policy. In general, the maturities in a portfolio should coincide as nearly as practicable with the expected use of funds. Securities with maturities greater than five years should be matched to a specific cash requirement. The government should include in its investment policy a process for authorizing longer-term investments and for providing disclosures.. References. • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. • GFOA Sample Investment Policy, 2003. • GASB Statement No. 31 and Statement No. 40, www.GASB.org Approved by the GFOA's Executive Board, October, 2009. 57 Government Finance Officers Association Recommended Practice Use of Local Government Investment Pools (LGIPs) (2007 and 2008) (CASH) Background. In many states, the state treasurer or the authorized governing board of another governmental entity (such as a county) oversees a pooled investment fund that operates like a money market mutual fund for the exclusive benefit of governments within the entity's jurisdiction. Unlike mutual funds, however, local government investment pools (LGIPs) are not registered with the Securities and Exchange Commission (SEC) and are exempt from SEC regulatory requirements because they fall under a governmental exclusion clause. While this exemption allows pools greater flexibility, it also reduces investor protection. Investments in these pools are not insured or guaranteed and substantial losses have occurred in the past. These pools typically combine the cash of participating jurisdictions and invest the cash in securities allowed under the state's laws regarding government investments. By pooling funds, participating governments benefit from economies of scale, full-time portfolio management, diversification, and liquidity (especially in the case of pools that seek a constant net asset value of $1.00). Interest is normally allocated to the participants on a daily basis, proportionate to the size of the investment. Most pools offer a check writing or wire transfer feature that adds value as a cash management tool. Government Sponsored versus Joint Powers Agreement Pools Local government investment pools (LGIPs) may be authorized under state statutes and sponsored by the state or local governments, or may be set up through intergovernmental agreements known as "joint powers" agreements. In several states, local governments have joined together through joint powers agreements to sponsor the creation of LGIPs that operate independent of the state government. The investment authorization to pool funds is generally derived from state statutes that allow governments to perform collectively any service or administrative function that they may undertake individually. A board of trustees, normally made up of public officials, oversees these pools and typically selects a financial services firm to provide services such as the following: investment management, custodial services, participant record keeping, independent audits, and legal services. These pools may invest only in securities otherwise allowed to individual governments. Whether the LGIP is state-sponsored or created through a joint powers agreement, it is important to be aware that the authorizing entity typically does not guarantee investments in the LGIP. Not All Pools Are the Same Although there are many similarities between the various LGIPs, there are also differences. One significant difference among pools that must be understood before placing money in them is their investment objectives. When LGIPs were first created, most emulated money market mutual funds with the objective of maintaining a"constant" Net Asset Value (NAV) of $1.00 and providing excellent liquidity for the investor. Such LGIPs invest in short-term securities with average maturities sufficiently short to avoid market price risk. The "constant" NAV pools are appropriate investments for funds that must be liquid and have virtually no price volatility. There are also government investment pools that have an investment objective of maximizing return. These pools are variable Net Asset Value (NAV) pools and introduce market risk to the investor through a fluctuating NAV. They invest in longer-term securities, thus subjecting their portfolios and their participants to greater market price volatility. The principal invested in the pool may not be the same principal returned to the investor, depending on the movement of interest rates. While they may be appropriate for longer-term strategies, these pools would not be appropriate for funds that must be liquid and stable. Other differences among pools include legal structure, authorized investments, procedures for depositing and withdrawing money, and services provided to participants. Each pool has a process that a participant must complete, including documents to be signed and banking information to be provided, in order to establish an account. Sources of information for evaluating pools may include a pool offering statement, investment policy or audited financial statements. 58 Rated LGIPs Rating agencies rate constant dollar LGIPs using the same criteria that they use for rating money market mutual funds. These ratings are based on safety of principal and ability to maintain a NAV of $1. Fluctuating NAV pool ratings include a volatility factor. Pool ratings can provide an additional method of due diligence. Recommendation. The Government Finance Officers Association (GFOA) makes the following recommendations to governments that invest in or are considering investing in Local Government Investment Pools (LGIPs). Government investors should: 1. Confirm LGIPs are eligible investments under governing law and the government's investment policy. 2. Fully understand the investment objectives, legal structure and operating procedures of the investment pool before they place any money in the pool. When evaluating an LGIP, investors should read the pool's offering statement, investment policy, and audited financial statements carefully. 3. Pay particular attention to the investment objectives of a pool to determine whether the pool seeks to maintain a constant NAV of $1.00 or could have a fluctuating NAV. This information is essential in order to determine which pools are appropriate for liquidity strategies (constant NAV) and which ones are only appropriate for longer-term strategies (fluctuating NAV). 4. Review the pool's list of eligible securities to determine compliance with the participating government's investment policy. Portfolio maturity restrictions and diversification policies should be evaluated to determine potential market and credit risks. 5. Evaluate portfolio pricing practices. 6. Review custodial policies (e.g., delivery versus payment). 7. Evaluate the qualifications and experience of the portfolio manager, management team and/or investment adviser. 8. Review the earnings performance history relative to other investment alternatives. On constant NAV LGIP funds, the current yield of the portfolio can be compared with competitive institutional money market funds, or overnight repurchase agreement rates. Standard & Poor's releases an index of LGIPs on a weekly basis that reports the average 7- and 30-day yields and average maturities of LGIPs holding its highest ratings (AAAm and AAm). Any pool with above-average yields or longer maturities should be further evaluated for risk. 9. Evaluate variable NAV LGIPs in relation to appropriate benchmarks. 10. Although ratings are not mandatory, seek LGIPs with the highest ratings, where possible. 11. Fully understand procedures for establishing an account, making deposits and withdrawals, and allocating interest earnings. There may be limits to the number of deposits and withdrawals in a month. There may also be dollar limits for deposits, withdrawals and balances. Deposits or withdrawals may require advanced notification, especially if they are large. If so, investors should be aware of the deadlines. 12. When selecting an LGIP, consider any additional services offered by an LGIP, such as: check writing, wire transfers, issuing paying agent services, setting up multiple accounts for an entity, and arbitrage accounting for bond funds. 13. Confirm that an LGIP provides regular, detailed reporting to pool participants and follows accepted reporting standards. GFOA recommends that pool administrators, on a daily basis, determine the market value of all securities in the pool and report this information to all pool participants on at least a monthly basis. These values should be obtained from a reputable and independent source. This information should be included in the report to the governing body prepared on at least a quarterly basis. 14. Be aware that an LGIP may be a part of a diversified portfolio but that a portfolio comprised solely of an LGIP may not provide the government entity with appropriate diversification. 59 References: • An Elected Officials Guide to Investing, 2nd Edition, Sofia Anastopoulos, GFOA, 2007 • GFOA Recommended Practice: Diversification of Investments in a Portfolio, 2007 • Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998 • Standard & Poor's Guide to LGIPs Approved by the GFOA's Executive Board, October 17, 2008. 60 Government Finance Officers Association Recommended Practice Using Safekeeping and Third-Party Custodian Services (2010) (NEV4) Back$tround. The safety of public funds should be the primary objective of all governments. One of the most important protections and a control against fraud is the separation of the safekeeping and custody function from the investment function Investment policies should include a section regarding independent third-party safekeeping or custody of securities. By arranging to have securities held by a third party, governments can effectively minimize safekeeping or custodial risk in an investment transaction. In a third-party safekeeping agreement, the government arranges for a firm other than the party that sold the investment to provide for the transfer and safekeeping of the securities. Financial firms should not serve as both government broker-dealer and custodian. Safekeeping represents a financial institution's obligation to act on behalf of the owner under the owner's control. Custody is a more clearly defined control position by the agent responding to the owner's requirements. Custody normally does not take place in the governmental entities depository bank. Investxnents should be settled in a delivery-versus-payment (DVP) basis. In this procedure, the buyer's payment for securities is due at the time of delivery. Security delivery and payment occur simultaneously. This practice ensures that no funds are at risk in an investment transaction as funds are not released until securities are delivered, ensuring the governmental entity has either money or securities at all times during the transaction. Recommendations. The Government Finance Officers Association (GFOA) recommends that state and local governments utilize independent third-party custodians to safeguard their investments and protect against safekeeping/custodial risks. To accomplish this goal, the GFOA recommends that governmental entities: 1. competitively select third-party custodians and safekeeping agents 2. have safekeeping/custodial agreements reviewed by government legal counsel prior to execution 3. evidence their safekeeping or custodial relationship with a signed, written security agreement that is reviewed by counsel and establishes the firm as its agent 4. execute all investment transactions on a delivery-versus-payment basis 5. designate a specific DDA (demand deposit account) clearing account in conjunction with the safekeeping or custodial account 6. require that the independent third-party safekeeping agent or custodian mark the portfolio to market at least monthly. Ideally, marking should take place daily with independent pricing. 7. require reports and monthly statements to be received directly by the governmental entity from the agent. 8. ideally, have electronic access to the safekeeping or custody account for monitoring and reporting purposes, if cost effective. 9. require safekeeping or custodial agents to be insured for error and omissions. 10. require review of internal safekeeping and custodial procedures annually with the independent auditor. References. Investing Public Funds, Second Edition, Girard Miller with M. Corinne Larson and W. Paul Zorn, GFOA, 1998. GFOA Sample Custodial Trust Agreement, 2006, www.gfoa.org. An Introduction to Collateralizing Public Deposits for State and Local Governments, Second Edition, M. Corinne Larson, GFOA, 2006. GFOA Best Practice Collateralizing Public Deposits (1984, 1987, 1993, 2000, and 2007) GFOA Sample Security Agreement (long and short version) 2010. www. fo? a•org Approved by the GFOA's Executive Board, October 15, 2010. 61 APPENDIX F Various Code of Virginia Provisions Pertaining to Investment of Local Government Funds 62 § 2.2-4500. Legal investments for public sinking funds. The Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any sinking funds belonging to them or within their control in the following securities: 1. Bonds, notes and other evidences of indebtedness of the Commonwealth, and securities unconditionally guaranteed as to the payment of principal and interest by the Commonwealth. 2. Bonds, notes and other obligations of the United States, and securities unconditionally guaranteed as to the payment of principal and interest by the United States, or any agency thereof. The evidences of indebtedness enumerated by this subdivision may be held directly, or in the form of repurchase agreements collateralized by such debt securities, or in the form of securities of any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio of such investment company or investment trust is limited to such evidences of indebtedness, or repurchase agreements collateralized by such debt securities, or securities of other such investment companies or investment trusts whose portfolios are so restricted. 3. Bonds, notes and other evidences of indebtedness of any county, city, town, district, authority or other public body of the Commonwealth upon which there is no default; provided, that such bonds, notes and other evidences of indebtedness of any county, city, town, district, authority or other public body are either direct legal obligations of, or those unconditionally guaranteed as to the payment of principal and interest by the county, city, town, district, authority or other public body in question; and revenue bonds issued by agencies or authorities of the Commonwealth or its political subdivisions upon which there is no default. 4. Bonds and other obligations issued, guaranteed or assumed by the International Bank for Reconstruction and Development, bonds and other obligations issued, guaranteed or assumed by the Asian Development Bank and bonds and other obligations issued, guaranteed or assumed by the African Development Bank. 5. Savings accounts or time deposits in any bank or savings institution within the Commonwealth provided the bank or savings institution is approved for the deposit of other funds of the Commonwealth or other political subdivision of the Commonwealth. (1956, c. 184, § 2-297; 1958, c. 102; 1966, c. 677, § 2.1-327; 1970, c. 75; 1974, c. 288; 1986, a 270; 1988, cc. 526, 834; 1996, cc. 77, 508; 2001, c. 844.) § 2Z-4501. Legal investments for other public funds. A. The Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, other than sinking funds, in the following: 1. Stocks, bonds, notes, and other evidences of indebtedness of the Commonwealth and those unconditionally guaranteed as to the payment of principal and interest by the Commonwealth. 2. Bonds, notes and other obligations of the United States, and securities unconditionally guaranteed as to the payment of principal and interest by the United States, or any agency thereof. The evidences of indebtedness enumerated by this subdivision may be held directly, or in the form of repurchase agreements collateralized by such debt securities, or in the form of securities of any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio of such investment company or investment trust is limited to such evidences of indebtedness, or repurchase agreements collateralized by such debt securities, or securities of other such investment companies or investment trusts whose portfolios are so restricted. 3. Stocks, bonds, notes and other evidences of indebtedness of any state of the United States upon which there is no default and upon which there has been no default for more than ninety days; provided, that within the twenty fiscal years next preceding the making of such investment, such state has not been in default for more than ninety days in the payment of any part of principal or interest of any debt authorized by the legislature of such state to be contracted. 4. Stocks, bonds, notes and other evidences of indebtedness of any county, city, town, district, authority or other public body in the Commonwealth upon which there is no default; provided, that if the principal and 63 interest be payable from revenues or tolls and the project has not been completed, or if completed, has not established an operating record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue, the standards of judgment and care required in Article 2(§ 26-453 et seq.) of Chapter 3 of Title 26, without reference to this section, shall apply. In any case in which an authority, having an established record of net earnings available for payment of principal and interest equal to estimated requirements for that purpose according to the terms of the issue, issues additional evidences of indebtedness for the purposes of acquiring or constructing additional facilities of the same general character that it is then operating, such additional evidences of indebtedness shall be governed by the provisions of this section without limitation. 5. Legally authorized stocks, bonds, notes and other evidences of indebtedness of any city, county, town or district situated in any one of the states of the United States upon which there is no default and upon which there has been no default for more than ninety days; provided, that (i) within the twenty fiscal years next preceding the making of such investment, such city, county, town or district has not been in default for more than ninety days in the payment of any part of principal or interest of any stock, bond, note or other evidence of indebtedness issued by it; (ii) such city, county, town or district shall have been in continuous existence for at least twenty years; (iii) such city, county, town or district has a population, as shown by the federal census next preceding the making of such investment, of not less than 25,000 inhabitants; (iv) the stocks, bonds, notes or other evidences of indebtedness in which such investment is made are the direct legal obligations of the city, county, town or district issuing the same; (v) the city, county, town or district has power to levy taxes on the taxable real property therein for the payment of such obligations without limitation of rate or amount; and (vi) the net indebtedness of such city, county, town or district (including the issue in which such investment is made), after deducting the amount of its bonds issued for self- sustaining public utilities, does not exceed ten percent of the value of the taxable property in such city, county, town or district, to be ascertained by the valuation of such property therein for the assessment of taxes next preceding the making of such investment. 6. Bonds and other obligations issued, guaranteed or assumed by the International Bank for Reconstruction and Development, by the Asian Development Bank or by the African Development Bank. B. This section shall not apply to retirement funds and deferred compensation plans to be invested pursuant to §§ 51.1-12430 through 51.1-124.35 or § 51.1-601. C. Investments made prior to July 1, 1991, pursuant to § 51.1-601 are ratified and deemed valid to the extent that such investments were made in conformity with the standards set forth in Chapter 6(§ 51.1-600 et seq.) of Title 51.1. (1956, c. 184, § 2-298; 1966, c. 677, § 2.1-328; 1980, c. 596; 1988, c. 834; 1991, c. 379; 1992, c. 810; 1996, c. 508; 1999, c. 772; 2001, c. 844.) § 2.2-4502. Investment of funds of Commonwealth, political subdivisions, and public bodies in "prime quality" commercial paper. A. The Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control other than sinking funds in "prime quality" commercial paper, with a maturity of 270 days or less, of issuing corporations organized under the laws of the United States, or of any state thereof including paper issued by banks and bank holding companies. "Prime quality" shall be as rated by at least two of the following: Moody's Investors Service, Inc., within its NCO/Moody's rating of prime 1, by Standard & Poor's, Inc., within its rating of A-1, by Fitch Investor's Services, Inc., within its rating of F-1, by Duff and Phelps, Inc., within its rating of D-1, or by their corporate successors, provided that at the time of any such investment: 1. The issuing corporation, or its guarantor, has a net worth of at least fifty million dollars; and 2. The net income of the issuing corporation, or its guarantor, has averaged three million dollars per year for the previous five years; and 3. All existing senior bonded indebtedness of the issuer, or its guarantor, is rated "A" or better or the equivalent rating by at least two of the following: Moody's Investors Service, Inc., Standard & Poor's, Inc., Fitch Investor's Services, Inc., or Duff and Phelps, Inc. 64 Not more than thirty-five percent of the total funds available for investment may be invested in commercial paper, and not more than five percent of the total funds available for investment may be invested in commercial paper of any one issuing corporation. B. Notwithstanding subsection A, the Commonwealth, municipal corporations, other political subdivisions and public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, except for sinking funds, in commercial paper other than "prime quality" commercial paper as defined in this section provided that: 1. Prior written approval is obtained from the governing board, committee or other entity that determines investment policy. The Treasury Board shall be the governing body for the Commonwealth; and 2. A written internal credit review justifying the creditworthiness of the issuing corporation is prepared in advance and made part of the purchase file. (1973, c. 232, § 2.1-328.1; 1974, c. 295; 1976, c. 665; 1986, c. 170; 1987, c. 73; 1988, c. 834; 1992, c. 769; 2001, c. 844.) § 2.2-4503. Not set out. § 2.2-4504. Investment of funds by the Commonwealth and political subdivisions in bankers' acceptances. Notwithstanding any provisions of law to the contrary, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control other than sinking funds in bankers' acceptances. (1981, c. 18, § 2.1-328.3; 1988, c. 834; 2001, c. 844.) § 2.2-4505. Investment in certificates representing ownership of treasury bond principal at maturity or its coupons for accrued periods. Notwithstanding any provision of law to the contrary, the Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, in certificates representing ownership of either treasury bond principal at maturity or its coupons for accrued periods. The underlying United States Treasury bonds or coupons shall be held by a third-party independent of the seller of such certificates. (1983, c. 117, § 2.1-328.5; 1985, c. 352; 1988, c. 834; 2001, c. 844.) § 2.2-4506. Securities lending. Notwithstanding any provision of law to the contrary, the Commonwealth, all public officers, municipal corporations, political subdivisions and all public bodies of the Commonwealth may engage in securities lending from the portfolio of investments of which they have custody and control, other than sinking funds. The Treasury Board shall develop guidelines with which such securities lending shall fully comply. Such guidelines shall ensure that the state treasury is at all times fully collateralized by the borrowing institution. (1983, c. 268, § 2.1-328.6; 2001, c. 844.) § 2.2-4507. Investment of funds in overnight, term and open repurchase agreements. Notwithstanding any provision of law to the contrary, the Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth, may invest any and all moneys belonging to them or within their control in overnight, term and open repurchase agreements that are collateralized with securities that are approved for direct investment. (1985, c. 352, § 2.1-328.8; 1988, c. 834; 2001, c. 844.) § 2.2-4508. Investment of certain public moneys in certain mutual funds. 65 Notwithstanding any provision of law to the contrary, the Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, other than sinking funds that are governed by the provisions of § 2.2-4500, in one or more open-end investment funds, provided that the funds are registered under the Securities Act (§ 13.1-501 et seq.) of the Commonwealth or the Federal Investment Co. Act of 1940, and that the investments by such funds are restricted to investments otherwise perxnitted by law for political subdivisions as set forth in this chapter, or investments in other such funds whose portfolios are so restricted. (1986, c. 170, § 2.1-328.9; 1988, c. 834; 1996, c. 508; 2001, c. 844.) § 2.2-4509. Investment of funds in negotiable certificates of deposit and negotiable bank deposit notes. Notwithstanding any provision of law to the contrary, the Commonwealth and all public officers, municipal corporations, and other political subdivisions and all other public bodies of the Commonwealth may invest any or all of the moneys belonging to them or within their control, other than sinking funds, in negotiable certificates of deposit and negotiable bank deposit notes of domestic banks and domestic offices of foreign banks with a rating of at least A-1 by Standard & Poor's and P-1 by Moody's Investor Service, Inc., for maturities of one year or less, and a rating of at least AA by Standard & Poor's and Aa by Moody's Investor Service, Inc., far maturities over one year and not exceeding five years. (1998, cc. 20, 21, § 2.1-328.15; 2001, c. 844.) § 2.2-4510. Investment of funds in corporate notes. A. Notwithstanding any provision of law to the contrary, the Commonwealth, all public officers, municipal corporations, other political subdivisions and all other public bodies of the Commonwealth may invest any and all moneys belonging to them or within their control, other than sinking funds, in high quality corporate notes with a rating of at least Aa by Moody's Investors Service, Inc., and a rating of at least AA by Standard and Poors, Inc., and a maturity of no more than five years. B. Notwithstanding any provision of law to the contrary, any qualified public entity of the Commonwealth may invest any and all moneys belonging to it or within its control, other than sinking funds, in high quality corporate notes with a rating of at least A by two rating agencies, one of which shall be either Moody's Investors Service, Inc., or Standard and Poars, Inc. As used in this section, "qualified public entity" means any state agency or institution of the Commonwealth, having an internal or external public funds manager with professional investment management capabilities. (1987, c. 187, § 2.1-328.10; 1988, c. 834; 1994, c. 145; 2001, c. 844; 2002, cc. 18, 438.) § 2.2-4511. Investment of funds in asset-backed securities. Notwithstanding any provision of law to the contrary, any qualified public entity of the Commonwealth may invest any and all moneys belonging to it or within its control, other than sinking funds, in asset- backed securities with a duration of no more than five years and a rating of no less than AAA by two rating agencies, one of which must be either Moody's Investors Service, Inc., or Standard and Poors, Inc. As used in this section, "qualified public entity" means any state agency, institution of the Commonwealth or statewide authority created under the laws of the Commonwealth having an internal or extemal public funds manager with professional investment management capabilities. (1994, c. 145, § 2.1-328.13; 1997, c. 29; 2001, c. 844.) § 2.2-4512. Investment of funds by State Treasurer in obligations of foreign sovereign governments. Notwithstanding any provision of law to the contrary, the State Treasurer may invest unexpended or excess moneys in any fund or account over which he has custody and control, other than sinking funds, in fully hedaP.(j dPbt O}llta?Y7QtlC flf CfJVeYP7Djl gevernmer_±s and compamiPs tha± are fia?lY b'»»rantPed hy St;ch sovereign governments, with a rating of at least AAA by Moody's Investors Service, Inc., and a rating of at least AAA by Standard and Poors, Inc., and a maturity of no more than five years. 66 Not more than ten percent of the total funds of the Commonwealth available for investment may be invested in the manner described in this section. (1988, c. 461, § 2.1-328.11; 2001, c. 844.) § 2.2-4513. Investments by transportation commissions. Transportation commissions that provide rail service may invest in, if required as a condition to obtaining insurance, participate in, or purchase insurance provided by, foreign insurance companies that insure railroad operations. (1988, c. 834, § 2.1-328.12; 2001, c. 844.) § 2.2-4514. Commonwealth and its political subdivisions as trustee of public funds; standard of care in investing such funds. Public funds held by the Commonwealth, public officers, municipal corporations, political subdivisions, and any other public body of the Commonwealth shall be held in trust for the citizens of the Commonwealth. Any investment of such funds pursuant to the provisions of this chapter shall be made solely in the interest of the citizens of the Commonwealth and with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. (1996, c. 437, § 2.1-328.14; 2001, c. 844.) § 2.2-4515. Collateral and safekeeping arrangements. Securities purchased pursuant to the provisions of this chapter shall be held by the public official, municipal corporation or other political subdivision or public body or its custodial agent who may not otherwise be a counterparty to the investment transaction. Securities held on the books of the custodial agent by a custodial agent shall be held in the name of the municipal corporation, political subdivision or other public body subject to the public body's order of withdrawal. The responsibilities of the public official, municipal corporation, political subdivision or other public body shall be evidenced by a written agreement that shall provide for delivery of the securities by the custodial agent in the event of default by a counterparty to the investment transaction. As used in this section, "counterparty" means the issuer or seller of a security, an agent purchasing a security on behalf of a public official, municipal corporation, political subdivision or other public body or the party responsible for repurchasing securities underlying a repurchase agreement. The provisions of this section shall not apply to (i) investments with a maturity of less than thirty-one calendar days or (ii) the State Treasurer, who shall comply with safekeeping guidelines issued by the Treasury Board or to endowment funds invested in accordance with the provisions of the Uniform Investment of Institutional Funds Act, Article 1.1 (§ 55-268.1 et seq.) of Chapter 15 of Title 55. (1988, c. 834, § 2.1-329.01; 2001, c. 844.) § 2.2-4516. Liability of treasurers or public depositors. When investments are made in accordance with this chapter, no treasurer or public depositor shall be liable for any loss therefrom in the absence of negligence, malfeasance, misfeasance, or nonfeasance on his part or on the part of his assistants or employees. (1979, c. 135, § 2.1-329.1; 2001, c. 844.) § 2Z-4517. Contracts on interest rates, currency, cash flow or on other basis. A. Any state entity may enter into any contract or other arrangement that is determined to be necessary or appropriate to place the obligation or investment of the state entity, as represented by bonds or investments, in whole or in part, on the interest rate cash flow or other basis desired by the state entity. Such contract or other u..angemeat ma-y include conuacts Yroviding for payments based on levels of, or changes in, ir?terest rates. These contracts or arrangements may be entered into by the state entity in connection with, or incidental to, entering into, or maintaining any (i) agreement that secures bonds or (ii) investment, or 67 contract providing for investment, otherwise authorized by law. These contracts and arrangements may contain such payment, security, default, remedy, and other terms and conditions as determined by the state entity, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by a nationally recognized rating agency, and any other criteria as may be appropriate. The determinations referred to in this subsection may be made by the Treasury Board, the governing body of the state entity or any public funds manager with professional investment capabilities duly authorized by the Treasury Board or the governing body of any state entity authorized to issue such obligations to make such determinations. As used in this section, "state entity" means the Commonwealth and all agencies, authorities, boards and institutions of the Commonwealth. B. Any money set aside and pledged to secure payments of bonds or any of the contracts entered into pursuant to this section may be invested in accordance with this chapter and may be pledged to and used to service any of the contracts or other arrangements entered into pursuant to this section. (2002, c. 407.) § 2.2-4600. Short title; definitions. This chapter may be cited as the "Local Government Investment Pool Act." (1980, c. 538, §§ 2.1-234.1, 2.1-2343; 1996, c. 77; 2001, c. 844.) § 2.2-4601. Findings and purpose. A. The General Assembly finds that the public interest is served by maximum and prudent investment of public funds so that the need for taxes and other public revenues is decreased commensurately with the earnings on such investments. In selecting among avenues of investment, the highest rate of return, consistent with safety and liquidity, shall be the objective. B. The purpose of this chapter is to secure the maximum public benefit from the investment of public funds, and, in furtherance of such purposes to: 1. Establish and maintain a continuing statewide policy for the deposit and investment of public funds; 2. Establish a state-administered pool for the investment of local government funds; and 3. Authorize treasurers or any other person collecting, disbursing, or otherwise handling public funds to invest such public funds either in accordance with Chapter 45 (§ 2.2-4500 et seq.) of this title or through the local government investment pool created by the chapter. C. The General Assembly finds that the objectives of this chapter will best be obtained through improved money management, emphasizing the primary requirements of safety and liquidity and recognizing the different investment objectives of operating and permanent funds. (1980, c. 538, § 2.1-234.2; 2001, c. 844.) § 2.2-4602. Local government investment pool created. A. A local government investment pool is created, consisting of the aggregate of all funds from local officials handling public funds that are placed in the custody of the State Treasurer for investment and reinvestment as provided in this chapter. B. The Treasury Board or its designee shall administer the local government investment pool on behalf of the participating local officials subject to regulations and guidelines adopted by the Treasury Board. C. The Treasury Board or its designee shall invest moneys in the local government investment pool with the degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Specifically, the types of authorized investments for local government investment pool assets shall be limited to those set forth for local officials in Chapter 45 (§ 2.2-4500 et seq.) of this title. D. A separate account for each participant in the fund shall be kept to record individual transactions and totals of all investments belonging to each participant. A monthly report showing the changes in investments made during the preceding month shall be furnished to each participant having a beneficial interest in the local government investment pool. Details of any investment transaction shall be furnished to any participant upon request. 68 E. The Treasury Board or its designee shall administer and handle the accounts in the same manner as bond and sinking fund trust accounts. F. The principal and accrued income, and any part thereof, of each and every account maintained for a participant in the local government investment pool shall be subject to payment at any time from the local government investment pool upon request, subject to applicable regulations and guidelines. Accumulated income shall be remitted or credited to each participant at least quarterly. G. Except as provided in this section, all instruments of title of all investments of the local government investment pool shall remain in the custody of the State Treasurer. The State Treasurer may deposit with one or more fiscal agents or banks, those instruments of title he considers advisable, to be held in safekeeping by the agents or banks for collection of the principal and interest or other income, or of the proceeds of sale. The State Treasurer shall collect the principal and interest or other income from investments of the investment pool, the instruments of title to which are in his custody, when due and payable. (1980, c. 538, § 2.1-234.8; 1984, c. 320; 1988, c. 834; 2001, c. 844.) § 2.2-4603. Investment authority. Subject to the procedures set forth in this chapter, any local official handling public funds may invest and reinvest any money subject to his control and jurisdiction in the local government investment pool established by § 2.2-4602. (1980, c. 538, § 2.1-234.4; 1988, c. 834; 2001, c. 844.) § 2.2-4604. Interfund pooling for investment purposes. Local officials handling public funds may effect temporary transfers among separate funds for the purpose of pooling amounts available for investment. This pooling may be accomplished through interfund advances and other appropriate means consistent with recognized principles of governmental accounting provided that (i) moneys are available for the investment period required; (ii) the investment fund can repay the advance by the time needed; (iii) the transactions are fully and promptly recorded; and (iv) the interest earned is credited to the loaning or advancing jurisdiction. (1980, c. 538, § 2.1-234.6; 1981, c. 583; 2001, c. 844.) § 2.2-4605. Powers of Treasury Board relating to the administration of local government investment pool. A. The Treasury Board shall have power to: 1. Make and adopt regulations necessary and proper for the efficient administration of the local government investment pool hereinafter created, including but not limited to: a. Specification of minimum amounts that may be deposited in the local government investment pool and minimum periods of time for which deposits shall be retained in such pool; b. Creation of a reserve for losses; c. Payment of administrative expenses from the earnings of such pool; d. Distribution of the earnings in excess of such expenses, or allocation of losses, to the several participants in a manner that equitably reflects the differing amounts of their respective investments and the differing periods of time for which such amounts were in the custody of the pool; and e. Procedures for the deposit and withdrawal of funds. 2. Develop guidelines for the protection of the local government investment pool in the event of default in the payment of principal or interest or other income of any investment of such pool, such guidelines to include the following procedures: a. Instituting the proper proceedings to collect the matured principal or interest or other income; b. Accepting for exchange purposes refunding bonds or other evidences of indebtedness at appropriate interest rates; c. Making compromises, adjustments, or disposition of matured principal or interest or other income as considered advisaoie ior tne purpose of proteciing tne moneys invested; d. Making compromises or adjustments as to future payments of principal or interest or other income considered advisable for the purpose of protecting the moneys invested. 69 3. Formulate policies for the investment and reinvestment of funds in the local government investment pool and the acquisition, retention, management, and disposition of investments of the investment pool. B. The Treasury Board may delegate the administrative aspects of operating under this chapter to the State Treasurer, subject to the regulations and guidelines adopted by the Treasury Board. C. Such regulations and guidelines may be adopted without complying with the Administrative Process Act (§ 2.2-4000 et seq.) provided that input is solicited from local officials handling public funds. Such input requires only that notice and an opporiunity to submit written comments be given. (1980, c. 538, § 2.1-234.7; 2001, c. 844.) § 2.2-4606. Chapter controlling over inconsistent laws; powers supplemental. Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, the provisions of this chapter shall be controlling and the powers conferred by this chapter shall be in addition and supplemental to the powers conferred by any other law. (1980, c. 538, § 2.1-234.9; 2001, c. 844.) 70 As Approved by Board of Trustees, 9113113 VIRGINIA INVESTMENT POOL TRUST FUND AGREEMENT THIS AGREEMENT (the "Agreement"), is made by and among the Participating Political Subdivisions that execute Trust Joinder Agreements to participate in the Virginia Investment Pool Trust Fund, their duly elected Treasurers or other Chief Investment Officers empowered by law to invest the public funds of such Participating Political Subdivisions, and the individuals named as Trustees pursuant to Section 106 hereof and their successors (the "Board of Trustees"). The Participating Political Subdivisions and their Treasurers or Chief Investment Officers hereby establish with the Board of Trustees, and the Board of Trustees hereby accepts, under the terms of this Agreement, a trust for the purpose of investing moneys belonging to or within the control of the respective Participating Political Subdivisions as allowed by law. WITNESSETH: WHEREAS, Section 15.2-1500 of the Virginia Code provides, in part, that every locality shall provide for all the governmental functions of the locality, including, without limitation, the organization of all departments, offices, boards, commissions and agencies of government, and the organizational structure thereof, which are necessary to carry out the fiznctions of government; and WHEREAS, Section 2.2-4501 of the Virginia Code provides that all municipal corporations and other political subdivisions may invest any and all moneys belonging to them or within their control, other than sinking funds, in certain authorized investments; and WHEREAS, Section 15.2-1300 of the Virginia Code provides that any power, privilege or authority exercised or capable of exercise by any political subdivision of the Commonwealth of Virginia may be exercised and enjoyed jointly with any other political subdivision of the Commonwealth having a similar power, privilege or authority pursuant to agreements with one another for joint action pursuant to the provisions of that section; and WHEREAS, the City of Chesapeake and the City of Roanoke have adopted ordinances approving participation in the Virginia lnvestment Pool for each such locality; and WHEREAS, the Participating Political Subdivisions and their Treasurers or Chief Investment Officers and the Board of Trustees of the Virginia lnvestment Pool Trust Fund (herein referred to as the "Trust Fund") hereby establish a trust for the purpose of investing monies belonging to or within the control of the Participating Political Subdivisions, respectively, other than sinking funds, in investments authorized under Section 2.2-4501 of the Virginia Code; and WHEREAS, the parties intend that the Trust Fund hereby established shall constitute a tax-exempt governmental trust under Section 115 of the Internal Revenue Code of 1986, as amended; As Approved by Board of Trustees, 9113113 NOW, THEREFORE, the parties hereto mutually agree as follows: PART 1- GENERAL PROVISIONS Section 100. APPLICATION. The provisions of Part 1 are general administrative provisions applicable to each Part of this Ageement and provisions applicable to the Board of Trustees. Section 101. DEFINITIONS. The following definitions shall apply to this Agreement, unless the context of the term indicates otherwise, and shall govern the interpretation of this Agreement: A. Administrator. The term "Administrator" means the Virginia Local Government Finance Corporation (d/b/a "VML/VACo Finance") or any successor designated by the Board of Trustees to administer the Trust Fund. B. Beneficial Interest. The right of a party to some distribution or benefit from the Trust Fund; a vested interest in the Trust Fund's assets. C. Code. The term "Code" means the Internal Revenue Code of 1986, as amended, and, as relevant in context, the Internal Revenue Code of 1954, as amended. D. Custodian. The term "Custodian" means the banks, mutual funds, insurance companies or other qualified entities selected by the Board of Trustees, under a separate written document with each, to accept contributions from Participating Political Subdivisions and to hold the assets of the Trust Fund. E. Effective Date. The term "Effective Date" means the date coinciding with the last to occur of each of the following events: (i) passage of an ordinance by each of the City of Chesapeake and the City of Roanoke approving such governmental entities as Participating Political Subdivisions in the Trust Fund; (ii) execution by the authorized officer of each such governmental entity of the Trust Joinder Agreement; (iii) execution of this Agreement by all members of the initial Board of Trustees and the Administrator; and (iv) any contribution of cash to the Trust by a Participating Political Subdivision. F. Participating Political Subdivision. The term "Participating Political Subdivision" means any county, city, town, or other political subdivision within the State whose governing body has passed an ordinance or resolution to participate in the Trust Fund, and whose Treasurer or Chief Investment Officer, serving as trustee for such Participating Political Subdivision, executes a Trust Joinder Agreement, as provided in Section 301 hereof. G. Treasurer. The term "Treasurer" means an officer described in Article VII, Section 4, of the Constitution of Virginia who shall serve as the trustee and representative of its Participating Political Subdivision for purposes of this Agreement. Treasurers shall vote the 2 As Approved by Board of Trustees, 9113113 beneficial interest of such Participating Political Subdivision in the Trust Fund, as prescribed in Part 3 of this Agreement. Nothing in this agreement shall be construed to limit the discretion of a duly elected Treasurer to invest the public funds of his or her political subdivision in any manner otherwise permitted by law, not shall the decision of any local governing body to become a Participating Political Subdivision under this agreement compel any duly elected Treasurer having responsibility for such investments of public funds to invest any the locality's funds in the Trust Fund created under this Agreement. H. Chief Investment Officer. The term "Chief Investment Officer" means an officer designated by the governing body of a Participating Political Subdivision to invest public funds on behalf of the political subdivision and to serve as the trustee of such Participating Political Subdivision with respect to the Trust Fund, but only in a political subdivision that does not have an elected treasurer empowered by law to perform those functions. The term "Chief Investment Officer" may include certain individuals holding the title of "treasurer" for the political subdivision but who are not included in the definition in Subsection F. Each Treasurer or Chief Investment Officer, as the case may be, shall be the trustee and representative of his or her Participating Political Subdivision for purposes of this Agreement and shall vote the beneficial interest of such Participating Political Subdivision in the Trust Fund, as prescribed in Part 3 of this Agreement. 1. Fiscal Year. The first fiscal year of the Trust Fund shall be a short fiscal year beginning on the Effective Date of this Agreement and ending on June 30, 2014. Each subsequent fiscal year of the Trust Fund shall begin on the first day of July and end on the thirtieth day of June. J. Investment Policv. The term "Investment Policy" means the Virginia lnvestment Pool Trust Fund Investment Policy, as established by the Board of Trustees, as amended from time to time. K. Prudent Person. A person who conducts himself faithfully, with intelligence, and exercising sound discretion in the management of his affairs, not in regard to speculation, but in regard to the perxnanent disposition of his funds, considering the probable income, as well as the probable safety of capital to be invested. L. State. The term "State" means the Commonwealth of Virginia. M. Trust Fund. The term "Trust Fund" means the Virginia lnvestment Pool Trust Fund, comprised of all of the assets set aside hereunder. N. Trust Joinder Agreement. The term "Trust Joinder Agreement" means the agreement, in the form attached hereto as Exhibit A, pursuant to which the Participating Political Subdivision joins in the Trust Fund, with the Treasurer or Chief Investment Officer, as the case may be, serving as the trustee of such Participating Political Subdivision, and agrees to be bound by the terms and conditions of the Virginia lnvestment Pool Trust Fund Agreement, as provided in Section 301 hereof. As Approved by Board of Trustees, 9113113 0. Trustees. The term "Trustees" means the individuals who serve on the Board of Trustees of the Trust Fund pursuant to Section 106 hereof and their successors. P. Virginia Code. The term "Virginia Code" means the laws embraced in the titles, chapters, articles and sections designated and cited as the "Code of Virginia," under the laws of the State. Section 102. GENERAL DUTIES AND MEETINGS OF THE BOARD OF TRUSTEES. A. General Duties. The Board of Trustees and each Investment Manager appointed pursuant to this Agreement shall discharge their respective duties under this Agreement solely as follows: (i) except as otherwise provided by any applicable provision of any statute, regulation, ordinance, or resolution, for the exclusive purpose of fulfilling the investment objectives of the Participating Political Subdivisions and defraying the reasonable expenses of administering the Trust Fund; (ii) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims; and (iii) by diversifying the investments of the Trust Fund so as to minimize the risk of large losses unless under the circumstances, it is clearly prudent not to do so. However, the duties and obligations of the Board of Trustees and each Investment Manager, respectively, as such, shall be limited to those expressly imposed upon them, respectively, by this Agreement. The Board of Trustees shall administer the Trust Fund in compliance with Chapter 45 of the Virginia Code (2.2-4500 et. seq.) 1. Authority of the Trustees. The Trustees shall have the power and authority and shall be charged with the duty of general supervision and operation of the Trust Fund, and shall conduct the business and activities of the Trust Fund in accordance with this Agreement, the Trust Joinder Agreements, rules and regulations adopted by the Board of Trustees and applicable law. 2. Trustees' Liabilities. No Trustee shall be liable for any action taken pursuant to this Agreement in good faith or for an omission except bad faith or gross negligence, or for any act of omission or commission by any other Trustee. The Trustees are hereby authorized and empowered to obtain, at the expense of the Trust Fund, liability insurance fully protecting the respective Trustees, the Administrator, and the Trust Fund from any loss or expense incurred, including reasonable attorney's fees, for all acts of the Trustees except bad faith or gross negligence. The Trust Fund shall save, hold harmless and indemnify the Trustees and Administrator from any loss, damage or expense incurred by said persons or entities while acting in their official capacity excepting bad faith or gross negligence. 3. Standard of Review. In evaluating the performance of the Trustees, compliance by the Trustees with this Agreement must be determined in light of the facts and circumstances existing at the time of the Trustees' decision or action and not by hindsight. 4 As Approved by Board of Trustees, 9113113 4. Limitations on Liabilities. The Trustees' responsibilities and liabilities shall be subject to the following limitations: (a) The Trustees shall have no duties other than those expressly set forth in this Agreement and those imposed on the Trustees by applicable laws. (b) The Trustees shall be responsible only for money actually received by the Trustees, and then to the extent described in this Agreement. (c) The Trustees shall not be responsible for the correciness of any determination of payments or disbursements from the Trust Fund. (d) The Trustees shall have no liability for the acts or omissions of any predecessor or successor in office. (e) The Trustees shall have no liability for (i) the acts or omissions of any Investment Advisor or Advisors, or Investment Manager or Managers; (ii) the acts or omissions of any insurance company; (iii) the acts or omissions of any mutual fund; or (iv) following directions that are given to the Trustees by the Treasurer or Chief Investment Officer in accordance with this Agreement. B. Reliance on CounseL The Board of Trustees may employ, retain or consult with legal counsel, who may be counsel for the Administrator, concerning any questions which may arise with reference to the duties and powers or with reference to any other matter pertaining to this Agreement; and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by the Trustees in good faith in accordance with the opinion of such counsel, and the Trustees shall not be individually or collectively liable therefor. C. Meetings. The Board of Trustees shall meet at least three times per year, and more frequently if called, at the principal office of the Trust Fund or at such other location as may be acceptable to a majority of the Trustees. One such meeting of the Board of Trustees shall be held as soon as practicable after the adjournment of the annual meeting of Treasurers or Chief Investment Officers of Participating Political Subdivisions at such time and place as the Board of Trustees may designate. Other meetings of the Board of Trustees shall be held at places within the Commonwealth of Virginia and at times fixed by resolution of the Board of Trustees, or upon call of the Chairperson of the Board or a majority of the Trustees, on not less than ten (10) days' advance notice. Such notice shall be directed to the Trustees by mail to the respective addresses of the Trustees as recorded in the office of the Trust Fund. The notice of any special meetings of the Board of Trustees shall state the purpose of the meeting. A majority of the number of Trustees elected and serving at the time of any meeting shall constitute a quorum for the transaction of business. Each Trustee shall be entitled to cast a single vote of equal weight on each question coming before the Board. Proxy voting is not allowed. The act of a majority of Trustees present at a meeting at which a quorum is present, As Approved by Board of Trustees, 9113113 shall be the act of the Board of Trustees unless otherwise specified in this agreement. Less than a quorum may adjourn any meeting. Robert's Rules of Order Newly Revised (11t1i edition) shall be the parliamentarv authoritv for the Board of Trustees. D. Office of the Trust Fund. The Administrator shall establish, maintain and provide adequate funding for an office for the administration of the Trust Fund. The address of such office is to be made known to the parties interested in or participating in the Trust Fund and to the appropriate governmental agencies. The books and records pertaining to the Trust Fund and its administration shall be kept and maintained at the office of the Trust Fund. E. Execution of Documents. A certificate signed by a person designated by the Board of Trustees to serve as Secretary shall be evidence of the action of the Trustees, and any such certificate or other instrument so signed shall be kept and maintained at the office of the Trust Fund and may be relied upon as an action of the Trustees. F. Appointment and Removal of Administrator. The Virginia Local Government Finance Corporation is hereby initially designated the Administrator pursuant to an administrative services agreement between the parties. The Board of Trustees shall provide compensation for the Administrator to administer the affairs of the Trust Fund. Any three (3) Trustees may call for a vote of the Board of Trustees to remove the Administrator by providing no less than 30 days' notice to the other Trustees and to the Administrator. A vote will be scheduled at the next meeting of the Board of Trustees, for which sufficient notice can be given, at which meeting the Administrator may be removed on a majority vote of the Trustees then serving . Upon removal of the Administrator, the Board of Trustees shall designate a successor Administrator. G. Duty to Furnish Information. The Treasurers or Chief Investment Officers and the Board of Trustees shall furnish to each other any document, report, return, statement or other information that the other reasonably deems necessary to perform duties imposed under this Agreement or otherwise imposed by law. H. Reliance on Communications. The Board of Trustees may rely upon a certification of a Treasurer or Chief Investment Officer with respect to any instruction, direction, or approval of its Participating Political Subdivision and may continue to rely upon such certification until a subsequent certification is filed with the Trustees. The Trustees shall have no duty to make any investigation or inquiry as to any statement contained in any such writing but may accept the same as fully authorized by the Treasurer or Chief Investment Officer and its Participating Political Subdivision. Section 103. ADMINISTRATIVE POWERS AND DUTIES. A. Trustees. The Board of Trustees, in addition to all powers and authorities under common law or statutory authority, including Chapter 45 of Title 2.2 of the Virginia Code (§§ 22-4500 et seq.), and subject to the requirements and limitations imposed by the common 6 As Approved by Board of Trustees, 9113113 law or statutory authority, including Chapter 45 of Title 2.2 of the Virginia Code (§§ 2.2-4500 et seq.), shall have and in its sole and absolute discretion may exercise from time to time and at any time, either through its own actions, delegation to the Administrator, or through a Custodian selected by the Board of Trustees, the following administrative powers and authority with respect to the Trust Fund: 1. To receive for the purposes hereof all cash contributions paid to it by or at the direction of the Participating Political Subdivisions or their Treasurers or Chief Investment Officers. 2. To hold, invest, reinvest, manage, administer and distribute cash balances as shall be transferred to the Trustees from time to time by the Participating Political Subdivisions or their Treasurers or Chief Investment Officers and the increments, proceeds, earnings and income thereof for the exclusive benefit of Participating Political Subdivisions. 3. To continue to hold any property of the Trust Fund that becomes otherwise unsuitable for investment for as long as the Board of Trustees in its discretion deems desirable; to reserve from investment and keep unproductive of income, without liability for interest, cash temporarily awaiting investment and such cash as it deems advisable, or as the Administrator from time to time may specify, in order to meet the administrative expenses of the Trust Fund or anticipated distributions therefrom. 4. To hold property of the Trust Fund in the name of the Trust Fund, or in the name of a nominee or nominees (e.g., registered agents), without disclosure of the trust, or in bearer form so that it will pass by delivery, but no such holding shall relieve the Board of Trustees of its responsibility for the safe custody and disposition of the Trust Fund in accordance with the provisions of this Agreement; the books and records of the Board of Trustees shall show at all times that such property is part of the Trust Fund and the Board of Trustees shall be absolutely liable for any loss occasioned by the acts of its nominee or nominees with respect to securities registered in the name of the nominee or nominees. 4. To employ in the management of the Trust Fund suitable agents, without liability for any loss occasioned by any such agents, so long as they are selected with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. 5. To make, execute and deliver, as trustee, any deeds, conveyances, leases, mortgages, contracts, waivers or other instruments in writing that it may deem necessary or desirable in the exercise of its powers under this Agreement. 6. To do all other acts that it may deem necessary or proper to carry out any of the powers set forth in this Section 103 or Section 202, to administer or carry out the purposes of the Trust Fund, or as otherwise is in the best interests of the Trust Fund; As Approved by Board of Trustees, 9113113 provided, however, the Board of Trustees need not take any action unless in its opinion there are sufficient Trust Fund assets available for the expense thereof. 7. To adopt rules and regulations governing the Trustees' operations and procedures. 8. To contract with municipal corporations, political subdivisions and other public entities of State or of local government and private entities for the provision of Trust Fund services and for the use or furnishing of services and facilities necessary, useful, or incident to providing Trust Fund services. 9. To advise the Administrator on the establishment of expectations with regard to the provision of administrative services and the establishment of appropriate fee levels. 10. To establish and charge fees for participation in the Trust Fund and for additional administrative services provided to a Participating Political Subdivision in addition to any fees charged by other administrative service providers. 11. To collect and disburse all funds due or payable from the Trust Fund, under the terms of this Agreement. 12. To provide for and promulgate all rules, regulations, and forms deemed necessary or desirable in contracting with Treasurers and Chief Investment Officers and their Participating Political Subdivisions, in fulfilling the Trustees' purposes and in maintaining proper records and accounts. 13. To employ insurance companies, banks, trust companies, investment brokers, investment advisors, or others as agents for the receipt and disbursement of funds held in trust for Participating Political Subdivisions. 14. To determine, consistent with the applicable law and the procedures under the Trust Fund, all questions of law or fact that may arise as to investments and the rights of any Participating Political Subdivision to assets of the Trust Fund. 15. Subject to and consistent with the Code and the Virginia Code, to construe and interpret the Trust Agreement and to correct any defect, supply any omissions, or reconcile any inconsistency in the Agreement. 16. To contract for, purchase or otherwise procure insurance and investment products. B. Administrator. Pursuant to an administrative services agreement between the Board of Trustees and the Administrator, the Administrator shall have the power and authority to implement policy and procedural matters as directed by the Board of Trustees as they relate to the ongoing operation and supervision of the Trust Fund and the provisions of this Agreement As Approved by Board of Trustees, 9113113 and applicable law. The Administrator shall immediately make application for a fidelity bond, to any company designated by the Board of Trustees, in such amount as may be specified by the Board of Trustees. The premium on such bond shall be paid from the Trust Fund, which bond shall be continued in force in such amount as the Board of Trustees may from time to time require. If the Administrator's bond is refused, or is ever cancelled, the Administrator may be removed on a majority vote of the Trustees then serving. Section 104. TAXES EXPENSES AND COMPENSATION OF TRUSTEES. A. Taxes. The Administrator, without direction from the Board of Trustees, shall pay out of the Trust Fund all taxes, if any, properly imposed or levied with respect to the Trust Fund, or any part thereof, under applicable law, and, in its discretion, may contest the validity or amount of any tax, assessment, claim or demand respecting the Trust Fund or any part thereof. B. Expenses and Compensation. The Board of Trustees is authorized to set aside from Participating Political Subdivision contributions received and the investment income earned thereon a reasonable sum for the operating expenses and administrative expenses of the Trust Fund including but not limited to, the employment of such administrative, legal, accounting, and other expert and clerical assistance, and the purchase or lease of such materials, supplies and equipment as the Board of Trustees, in its discretion, may deem necessary or appropriate in the performance of its duties, or the duties of the agents or employees of the Trust Fund or the Trustees. All remaining funds coming into the Trust shall be set aside, managed and used only for the benefit of Participating Political Subdivisions. Section 105. COMMUNICATIONS. Until notice is given to the contrary, communication to the Trustees or to the Administrator shall be sent to them at the Trust Fund's office in care of the Administrator. The Administrator's address is VML/VACo Finance at 919 E. Main Street, Suite 1100 Richmond, VA 23219. Section 106. APPOINTMENT. RESIGNATION OR REMOVAL OF TRUSTEES. A. Appointment of Trustees and Length of Appointment. The number of Trustees serving on the Board of Trustees shall be fourteen (14). 1. The initial group of Trustees to establish the Trust Fund will be comprised as follows: (a) the Treasurer of the City of Chesapeake, (b) the Treasurer of the City of Roanoke, (c) five (5) individuals designated by the Board of Directors of the Virginia Association of Counties ("VACo"), (d) five (5) individuals designated by the Board of Directors of the Virginia Municipal League ("VML"), (e) the Executive Director of VACo, who shall serve as a non-voting ex officio trustee, and (f) the Executive Director of VML, who shall serve as a non-voting ex officio trustee. VACo and VML shall give priority for appointment to Treasurers and Chief Investment Officers. The appointees of 9 As Approved by Board of Trustees, 9113113 VACo and VML shall serve until successor trustees are elected at the first annual meeting of the Treasurers and Chief Investment Officers. 2. With the first annual meeting of the Treasurers and Chief Investment Officers, the Board of Trustees shall be divided into three classes, A, B, and C. Class A will include the Treasurers of the two founding Participating Political Subdivisions, who shall continue to serve for two 3-year terms until successor trustees are elected at the annual meeting of the Treasurers and Chief Investment Officers to be held in Fiscal Year 2021 (the "Fiscal Year 2021 annual meeting"), and two trustees to be elected to serve until successor trustees are elected at the annual meeting to be held in Fiscal Year 2018 . Class B, will serve for a transitional period until successor trustees are elected at the annual meeting to be held in Fiscal Year 2017. Class C will serve for a transitional period until successor trustees are elected at the annual meeting to be held in Fiscal Year 2016. One of the Class B seats and one of the Class C seats will be designated to be filled by a Treasurer or Chief Investment Officer of a locality with a population of 75,000 or less, according to the latest decennial census. Individuals who do not meet this requirement may not be nominated for a seat so designated. 3. On or after July 1, 2014, the Trustees shall solicit nominations from the Treasurers and Chief Investment Officers of Participating Political Subdivisions for two Class A, four Class B, and four Class C Trusteeships, and such nominees, along with any nominations from the floor, shall constitute the candidates for the election of Trustees by vote at the Fiscal Year 2015 annual meeting of the Treasurers and Chief Investment Officers as provided in Section 307. In the event that there are not a sufficient number of eligible nominees from among Participating Political Subdivisions, nominations will be provided by the Executive Directors of the Virginia Association of Counties and the Virginia Municipal League. VACo and VML shall give priority for nomination, firstly, to Treasurers and Chief Investment Officers of Participating Political Subdivisions and, secondly, to treasurers and chief investment officers of non-participating political subdivisions. 4. On or after July 1, 2015, the Trustees shall solicit nominations from Treasurers and Chief Investment Officers of Participating Political Subdivisions for Class C Trusteeships, and such nominees, along with any nominations from the floor, shall constitute the candidates for the election of Trustee by vote at the Fiscal Year 2016 annual meeting of the Treasurers and Chief Operating Officers as provided in Section 307. In the event that there are not a sufficient number of eligible nominees from among Participating Political Subdivisions, nominations will be provided by the Executive Directors of the Virginia Association of Counties and the Virginia Municipal League. VACo and VML shall give priority for nomination, firstly, to Treasurers and Chief Investment Officers of Participating Political Subdivisions and, secondly, to treasurers and chief investment officers of non-participating political subdivisions. 10 As Approved by Board of Trustees, 9113113 5. At each annual meeting of Treasurers and Chief Investment Officers following the transitional period, the successors to the class of Trustees whose terms shall then expire shall be identified as being of the same class as the trustees they succeed and elected to hold office for a term expiring at the third succeeding annual meeting of Treasurers and Chief Investment Officers. Trustees shall hold their offices until the next annual meeting of Treasurers and Chief Investment Officers for such Trustee's respective Class and until their successors are elected and qualify. 6. At each annual meeting of the Treasurers and Chief Investment Officers, the incumbent Trustees will present all nominations received for each class of Trustees (A, B, and/or C) for which an election is to be held and entertain nominations from the floor. If a Treasurer or Chief Investment Officer does not designate a particular class for its nominee(s), such names will be included on the lists of eligible nominees for each class for which an election is to be held unless the individual named is elected to another seat. 7. No individual Trustee may be elected or continue to serve as a Trustee after becoming an owner, officer or employee of the Administrator, an Investment Advisor, an Investment Manager or a Custodian. Beginning with the FY 2017 annual meeting, no Trustee may be elected or continue to serve as a Trustee unless he or she is a Treasurer or Chief Investment Officer of a Participating Political Subdivision. In the event that there are not a sufficient number of eligible nominees as of the date of the annual meeting, the position will be declared vacant. 8. Each Trustee and each successor Trustee shall acknowledge and consent to lus or her election as a Trustee at the annual meeting at which he/she is elected or, if subsequent to the annual meeting, by giving written notice of acceptance of such election to the Chairperson of the Trustees. B. Resignation of a Trustee. 1. A Trustee may resign from all duties and responsibilities under this Agreement by giving written notice to the Chairperson of the Trustees. The Chairperson may resign from all duties and responsibilities under this Agreement by giving written notice to all of the other Trustees. Such notice shall state the date such resignation shall take effect and such resignation shall take effect on such date but not later than sixty (60) days after the date such written notice is given. 2. Any Trustee, upon leaving office, shall forthwith turn over and deliver to the Administrator at the principal office of the Trust Fund any and all records, books, documents or other property in his or her possession or under his or her control which belong to the Trust Fund. C. Removal of a Trustee. Each Trustee, unless due to resignation, death, incapacity, removal, or conviction of a felony or any offense for which registration is required as defined in 11 As Approved by Board of Trustees, 9113113 Virginia Code § 9.1-902, shall serve and shall continue to serve as Trustee hereunder, subject to the provisions of this Agreement. A Trustee shall relinquish his or her office or may be removed by a majority vote of the Trustees then serving or ipso facto when the Employer which he/she represents is no longer a Participating Political Subdivision in the Trust Fund. Notice of removal of a Trustee shall be furnished to the other Trustees by the Chairperson of the Trustees and shall set forth the effective date of such removal. Notice of removal of the Chairperson shall be furnished to the other Trustees by the Administrator and shall set forth the effective date of such removal. D. Appointment of a Successor Trustee. Except as otherwise provided in part A.1 of this Section with respect to the initial term of Class A Trustees, in the event a Trustee shall die, resign, become incapacitated, be removed from office, or convicted of a felony or any offense for which registration is required as defined in Virginia Code § 9.1-902, a successor Trustee shall be elected forthwith by the affirmative vote of the majority of the remaining Trustees though less than a quorum of the Board of Trustees. The notice of the election of a successor Trustee shall be furnished to the other Trustees by the Chairperson. In case of the removal, death, resignation, etc. of the Chairperson, notice of the election of a successor Trustee, and the new Chairperson, shall be furnished to the other Trustees by the Administrator. Nominations for interim replacement of vacant positions may be made by any member of the Board of Trustees. The term of office of any Trustee so elected shall expire at the next Annual Meeting of Treasurers and Chief Investment Officers at which Trustees are elected. The successor Trustee shall be elected to complete the term for the Class to which such Trustee has been assigned. In the event that a vacancy occurs in the office of either the Treasurer of Chesapeake or the Treasurer of Roanoke prior to the FY 2021 annual meeting, the newly assigned Treasurer of the founding Participating Political Subdivision will automatically assume the vacant position. E. Trustees' Rights. In case of the death, resignation or removal of any one or more of the Trustees, the remaining Trustees shall have the powers, rights, estates and interests of this Agreement as Trustees and shall be charged with the duties of this Agreement; provided in such cases, no action may be taken unless it is concurred in by a majority of the remaining Trustees. However, if such vacancies leave less than a quorum of Trustees, the remaining trustees may only act to appoint successors. Only after a quorum has been established may the trustees take the other actions established in this subsection. Section 107. BONDING. All Trustees shall immediately make application for a fidelity bond, to any company designated by the Board of Trustees, in such amount as may be specified by the Board of Trustees. Premiums on such bonds shall be paid from the Trust Fund, which bonds shall be continued in force in such amount as the Board of Trustees may from time to time require. If a Trustee's bond is refused, or is ever cancelled, except with the Board of Trustees' approval, such Trustee may be removed from office by majority vote of the Trustees then serving. 12 As Approved by Board of Trustees, 9113113 PART 2- PROVISIONS APPLICABLE TO INVESTMENTS Section 200. APPLICATION. The provisions of Part 2 apply to the investments of the Trust Fund. Section 201. ADMINISTRATION OF TRUST. A. General. All such assets shall be held by the Trustees in the Trust Fund. B. Contributions. The Board of Trustees hereby delegates to the Custodian the responsibility for accepting cash contributions to the Trust Fund, and the Custodian shall have the responsibility for accepting cash contributions by Participating Political Subdivisions. Assets held in the Trust Fund shall be dedicated to the benefit of each Participating Political Subdivision, respectively, or to defraying reasonable expenses of the Trust Fund. All contributions by a Participating Political Subdivision shall be transferred to the Trust Fund to be held, managed, invested and distributed as part of the Trust Fund by the Trustees in accordance with the provisions of this Agreement and applicable law. C. Applicable Laws and Regulations, The Board of Trustees shall be authorized to take the steps it deems necessary or appropriate to comply with any laws or regulations applicable to the Trust Fund. D. Accumulated Share. No Participating Political Subdivision shall have any right, title or interest in or to any specific assets of the Trust Fund, but shall have an undivided beneficial interest in the Trust Fund; however, there shall be a specific accounting of assets allocable to each Participating Political Subdivision. Section 202. MANAGEMENT OF INVESTMENTS OF THE TRUST FLTND. A. Authority of Trustees. Except as set forth in subsections C, D, F, or G of this Section, and except as otherwise provided by law, the Board of Trustees shall have exclusive authority and discretion to manage and control the assets of the Trust Fund held by them pursuant to the guidelines established by the Board of Trustees in the Investment Policy. B. Investment Policv. The Board of Trustees, as its primary responsibility under this Agreement, shall develop a written Investment Policy establishing guidelines applicable to the investment of the assets of the Trust Fund, and from time to time shall modify such Investment Policy, in light of the short and long-term financial interests of the Participating Political Subdivisions and the Trust Fund. The Investment Policy shall serve as the description of the funding policy and method for the Trust Fund. C. Investment Advisor. From time to time, the Administrator may, pursuant to approval of the Board of Trustees, appoint one (1) or more independent Investment Advisors ("Investment Advisor"), pursuant to a written investment advisory agreement with each, describing the powers and duties of the Investment Advisor with regard to the management of all 13 As Approved by Board of Trustees, 9113113 or any portion of any investment or trading account of the Trust Fund. The Investment Advisor shall review, a minimum of every calendar quarter, the suitability of the Trust Fund's investments, the performance of the Investment Managers and their consistency with the objectives of the Investment Policy with assets in the portion of the Trust Fund for which the Investment Manager has responsibility for management, acquisition or disposition. If the Administrator contracted with a lead Investment Advisor prior to the establishment of this Agreement, the Board of Trustees may ratify such contract. The lead Investment Advisor will serve at the pleasure of the Board of Trustees and will be compensated for its recurring, usual and customary services. Subject to the approval of the Board of Trustees, the Investment Advisor shall recommend an asset allocation for the Trust Fund that is consistent with the obj ectives of the Investment Policy. If the Board of Trustees shall approve a separate Investment Policy with respect to assets in a segregated portion of the Trust Fund, the Investment Advisor shall recommend an asset allocation for such segregated portion of the Trust Fund that is consistent with the objectives of such Investment Policy. At least annually, the Investment Advisor shall review the Investment Policy and asset allocation with the Board of Trustees. The Investment Advisor shall also advise the Board of Trustees with regard to investing in a manner that is consistent with applicable law, based on majority vote of the Board of Trustees, and in consideration of the expected distribution requirements of the Plans. D. Investment Mana ers. The Board of Trustees, from time to time, may appoint one (1) or more independent Investment Managers ("Investment Manager"), pursuant to a written investment management agreement with each, describing the powers and duties of the Investment Manager to invest and manage all or a portion of the Trust Fund. The Investment Manager shall have the power to direct the management, acquisition or disposition of that portion of the Trust Fund for which the Investment Manager is responsible. The Board of Trustees shall be responsible for ascertaining that each Investment Manager, while acting in that capacity, satisfies the following requirements: 1. The Investment Manager is either (i) registered as an investment advisor under the Investment Advisors Act of 1940, as amended; (ii) a bank as defined in that Act; or (iii) an insurance company qualified to perform the services described herein under the laws of more than one state; and 2. The Investment Manager has acknowledged in writing to the Board of Trustees that it is a fiduciary with respect to the assets in the portion of the Trust Fund for which the Investment Manager has responsibility for management, acquisition or disposition. If the Administrator contracted with a lead Investment Manager prior to the establishment of this Agreement, the Board of Trustees may ratify such contract. The lead Investment Manager will serve at the pleasure of the Board of Trustees and will be compensated for its recurring, usual and customary services. 14 As Approved by Board of Trustees, 9113113 E. Custodians. The Custodian(s) shall provide monthly statements to each participant and at the request of the Board of Trustees certify the value of any property of the Trust Fund managed by the Investment Manager(s). The Trustees shall be entitled to rely conclusively upon such valuation for all purposes under the Trust Fund. F. Absence of Trustees' Responsibility for Investment Advisor and Manager. Except to the extent provided in paragraph A of Section 102 above, the Board of Trustees, collectively and individually, shall not be liable for any act or omission of any Investment Manager and shall not be under any obligation to invest or otherwise manage the assets of the Trust Fund that are subject to the management of any Investment Manager. Without limiting the generality of the foregoing, the Board of Trustees shall be under no duty at any time to make any recommendation with respect to disposing of or continuing to retain any such asset. Furthermore, the Board of Trustees, collectively and individually, shall not be liable by reason of its taking or refraining from taking the advice of the Investment Advisor any action pursuant to this Section, nor shall the Board of Trustees be liable by reason of its refraining from taking any action to remove or replace any Investment Manager on advice of the Investment Advisor; and the Trustees shall be under no duty to make any review of an asset acquired at the direction or order of an Investment Manager. G.. Reporting. The Board of Trustees shall be responsible for and shall cause to be filed periodic audits, valuations, reports and disclosures of the Trust Fund as are required by law or agreements. Notwithstanding anything herein to the contrary, the Board of Trustees shall cause the Trust Fund to be audited by a certified public accounting firm retained for this purpose at least once each year. The Board of Trustees may employ professional advisors to prepare such audits, valuations, reports and disclosures and the cost of such professional advisors shall be borne by the Trust Fund. H. Commingling Assets. Except to the extent prohibited by applicable law, the Board of Trustees may commingle the assets of all Participating Political Subdivisions held by the Board of Trustees under this Agreement for investment purposes in the Trust Fund and shall hold the Trust Fund in trust and manage and administer the same in accordance with the terms and provisions of this Agreement. However, the assets of each Participating Political Subdivision shall be accounted for separately. Section 203. ACCOIJNTS. The Trustees shall keep or cause to be kept at the expense of the Trust Fund accurate and detailed accounts of all its receipts, investments and disbursements under this Agreement, with the Trustees causing the Investment Advisor to account separately for each Inveshnent Manager's portion of the Trust Fund. 15 As Approved by Board of Trustees, 9/13113 Section 204. DISBURSEMENTS FROM THE TRUST. A. Trust Payments. The Board of Trustees hereby delegates to the Administrator the responsibility for making payments from the Trust Fund. In accordance with rules and regulations established by the Board of Trustees, the Administrator shall make payments from the Trust Fund as directed by the Treasurer or Chief Investment Officer of each Participating Political Subdivision. Payments shall be made in such manner, in such amounts and for such purposes as may be directed by the respective Treasurer or Chief Investment Officer. Payments from the Trust Fund shall be made by electronic transfer or check (or the check of an agent) for deposit to the order of the payee. Payments or other distributions hereunder may be mailed to the payee at the address last furnished to the Administrator. The Trustees shall not incur any liability on account of any payrnent or other distribution made by the Trust Fund in accordance with this Section. Such payment shall be in full satisfaction of claims hereunder against the Trustee, Administrator or Participating Political Subdivision. B. Allocation of Expenses. The Trustees shall pay all expenses of the Trust Fund from the assets in the Trust Fund. All expenses of the Trust Fund, which are allocable to a particular investment option or account, may be allocated and charged to such investment option or account as determined by the Trustees. All expenses of the Trust Fund which are not allocable to a particular investment option or account shall be charged to each such investment option or account in the manner established by the Trustees. Section 205. INVESTMENT OPTIONS. The Trustees shall initially establish one (1) investment option within the Trust Fund pursuant to the Investment Policy, for communication to, and acceptance by, Treasurers and Chief Investment Officers. Following development of the initial "investment option" pursuant to the Investment Policy, the Board of Trustees may develop additional investrnent options, reflecting different risk/return objectives and corresponding asset mixes, for selection by Treasurers and Chief Investment Officers, as alternatives to the initial investment option. The determination to add alternative investment options to the Investment Policy, and the development of each such investment option, are within the sole and absolute discretion of the Board of Trustees. The Trustees shall transfer to any deemed investment option developed hereunder such portion of the assets of the Trust Fund as appropriate. The Trustees shall manage, acquire or dispose of the assets in an investment option in accordance with the directions given by each Treasurer or Chief Investment Officer. All income received with respect to, and all proceeds received from, the disposition of property held in an investment option shall be credited to, and reinvested in, such investment option. If multiple investment options are developed, from time to time, the Board of Trustees may eliminate an investment option, and the proceeds thereof shall be reinvested in the remaining investment option having the shortest duration of investments unless another investment option is selected in accordance with directions given by the Treasurer or Chief Investment Officer. 16 As Approved by Board of Trustees, 9113113 Notwithstanding anything in this agreement to the contrary, the Board of Trustees, in its sole discretion, may establish a separate, short-term investment option or fund, to facilitate contributions, disbursements or other short-term liquidity needs of the Trust or of particular Participating Political Subdivisions. Separate investment funds within the Trust Fund and varying percentages of investment in any such separate investment fund by the Participating Political Subdivisions, to the extent so determined by the Board of Trustees, are expressly permitted. PART 3- PROVISIONS APPLICABLE TO PARTICIPATING POLITICAL SUBDIVISIONS Section 300. APPLICATION. The provisions of Part 3 set forth the rights of Participating Political Subdivisions. Section 301. PARTICIPATING POLITICAL SUBDIVISIONS. A. Approval. The Board of Trustees or its designee shall receive applications from Treasurers and Chief Investment Officers of Participating Political Subdivisions for membership in the Trust Fund and shall approve or disapprove such applications for membership in accordance with the terms of this Agreement, the Trust Joinder Agreement, and the rules and regulations established by the Board of Trustees for admission of new Participating Political Subdivisions. The Board of Trustees shall have total discretion in determining whether to accept a new member. The Board of Trustees may delegate the authority for membership approval to the Administrator. B. Execution of Trust Joinder Agreement. Once the governing body of a political subdivision has approved an ordinance or resolution to participate in the Trust Fund, its Treasurer or Chief Investment Officer, serving as trustee for such political subdivision, may execute a Trust Joinder Agreement in such form and content as prescribed by the Board of Trustees. By the execution of the Trust Joinder Agreement, the Participating Political Subdivision agrees to be bound by all the terms and provisions of this Agreement, the Trust Joinder Agreement, and any rules and regulations adopted by the Trustees under this Agreement. The Treasurer or Chief Investment Officer of each Participating Political Subdivision, serving as such Participating Political Subdivision's trustee shall represent such Participating Political Subdivision's interest in all meetings, votes, and any other actions to be taken by a Participating Political Subdivision hereunder, provided that a Treasurer who elects not to invest public funds pursuant to the Joinder Agreement shall have no obligation to serve as a trustee for his or her locality. C. Continuing as a Participating Political Subdivision. Application for participation in this Agreement, when approved in writing by the Board of Trustees or its designee, shall constitute a continuing contract for each succeeding fiscal year unless terminated by the Trustees or unless the Participating Political Subdivision resigns or withdraws from this Agreement by written notice sent by its duly authorized official. The Board of Trustees may terminate a Participating Political Subdivision's participation in this Agreement for any reason by vote of a 17 As Approved by Board of Trustees, 9113113 three-fourths (3/4) majority of the voting members of the Board of Trustees present at a duly called meeting. If the participation of a Participating Political Subdivision is ternunated, the Board of Trustees and the Administrator shall effect the withdrawal of such Participating Political Subdivision's beneficial interest in the Trust in accordance with its usual withdrawal policies. Section 302. MEETINGS OF PARTICIPATING POLITICAL SUBDIVISIONS. A. Places of Meetings. All meetings of the Treasurers and Chief Investment Officers shall be held at such place, within the Commonwealth of Virginia, as from time to time may be fixed by the Trustees. B. Annual Meetings. The annual meeting of the Treasurers and Chief Investment Officers of Participating Political Subdivisions, for the election of Trustees and for the transaction of such other business as may come before the annual meeting, shall be held at such time on such business day between September lst and October 31St as shall be designated by resolution of the Board of Trustees. C. Special Meetings. Special meetings of the Treasurers or Chief Investment Officers for any purpose or purposes may be called at any time by the Chairperson of the Board of Trustees, by the Board of Trustees, or if Treasurers and Chief Investment Officers together holding at least twenty percent (20%) of all votes entitled to be cast on any issue proposed to be considered at the special meeting sign, date and deliver to the Trust Fund's Secretary one or more written demands for the meeting describing the purpose or purposes for which it is to be held. At a special meeting no business shall be transacted and no action shall be taken other than that stated in the notice of the meeting. D. Notice of Meetings. Written notice stating the place, day and hour of every meeting of the Treasurers and Chief Investment Officers and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be given not less than ten (10) nor more than sixty (60) days before the date of the meeting to each Participating Political Subdivision's Treasurer or Chief Investment Officer of record entitled to vote at such meeting, at the address which appears on the books of the Trust Fund. Such notice may include any rules established by the Board of Trustees governing the nomination and election of candidates, determination of vote allocations, and other such matters. E. uorum. Any number of Treasurers and Chief Investment Officers together holding at least a majority of the outstanding beneficial interests entitled to vote with respect to the business to be transacted, who shall be physically present in person at any meeting duly called, shall constitute a quorum of such group for the transaction of business. If less than a quorum shall be in attendance at the time for which a meeting shall have been called, the meeting may be adjourned from time to time by a majority of the Treasurers and Chief Investment Officers present. Once a beneficial interest is represented for any purpose at a meeting of Treasurers and Chief Investment Officers, it shall be deemed present for quorum purposes for the remainder of the meeting and for any adjournment of that meeting unless a new record date is, or shall be, set for that adjourned meeting. 18 As Approved by Board of Trustees, 9113113 F. Voting. At any meeting of the Treasurers and Chief Investment Officers, each Treasurer or Chief Investment Officer entitled to vote on any matter coming before the meeting shall, as to such matter, have one vote, in person, for each two hundred fifty thousand ($250,000) dollars, or fraction thereof, invested in its name in the Trust Fund, based upon an annual weighted average during the previous fiscal year ending June 30. Notwithstanding the preceding sentence, at any meeting held after the date the tenth (10`h) Participating Political Subdivision joins the Trust, no one Treasurer or Chief Investment Officer may vote more than twenty percent (20%) of the total votes cast. A Treasurer or Chief Investment Officer may, by written and signed proxy, designate another employee or elected official of his/her Participating Political Subdivision to cast his/her votes in person at the meeting. If a quorum is present at a meeting of the Treasurers and Chief Investment Officers, action on a matter other than election of Trustees shall be approved if the votes cast favoring the action exceed the votes cast opposing the action, unless a vote of a greater number is required by this Agreement. If a quorum is present at a meeting of the Treasurers and Chief Investment Officers, nominees for Trustees for all open seats for each class of Trustees on the Board of Trustees shall be elected by a plurality of the votes cast by the beneficial interests entitled to vote in such election. Treasurers and Chief Investment Officers at the annual meeting will vote at one time to fill all open positions within a single class of Trustees. Elections will be held by class, in the order of the length of the terms to be filled, beginning with the longest term. Each Treasurer ar Chief Investment Officer will cast up to the full number of its votes for each open position within a class of Trustees but may not cast votes for more than the number of open positions in such class. Those nominees receiving the largest plurality of votes, up to the number of positions to be filled, will be declared elected. Subsequent votes may be held to break any ties, if necessary, in order to elect the correct number of Trustees. PART 4- PROVISIONS APPLICABLE TO OFFICERS Section 401. ELECTION AND REMOVAL OF OFFICERS. A. Election of Officers; Terms. The Board of Trustees shall appoint the officers of the Trust Fund. The officers of the Trust Fund shall consist of a Chairperson of the Board, a Vice-Chairperson, and a Secretary. The Secretary need not be a member of the Board of Trustees and may be the Administrator. Other officers, including assistant and subordinate officers, may from time to time be elected by the Board of Trustees, and they shall hold office for such terms as the Board of Trustees may prescribe. All officers shall hold office until the next annual meeting of the Board of Trustees and until their successors are elected. B. Removal of Officers; Vacancies. Any officer of the Trust Fund may be removed summarily with or without cause, at any time, on a three-fourths (3/) vote of the Board of Trustees present at a duly called meeting. Vacancies may be filled by the Board of Trustees. 19 As Approved by Board of Trustees, 9113113 Section 402. DUTIES. A. Duties, generally. The officers of the Trust Fund shall have such duties as generally pertain to their offices, respectively, as well as such powers and duties as are prescribed by law or are hereinafter provided or as from time to time shall be conferred by the Board of Trustees. The Board of Trustees may require any officer to give such bond for the faithful performance of such officer's duties as the Board of Trustees may see fit. B. Duties of the Chairperson. The Chairperson shall be selected from among the Trustees. Except as otherwise provided in this Agreement or in the resolutions establishing such committees, the Chairperson shall be ex officio a member of all Committees of the Board of Trustees. The Chairperson shall preside at all Board meetings. The Chairperson may sign and execute in the name of the Trust Fund stock certificates, deeds, mortgages, bonds, contracts or other instruments except in cases where the signing and the execution thereof shall be expressly delegated by the Board of Trustees or by this Agreement to some other officer or agent of the Trust Fund or as otherwise required by law. In addition, he/she shall perform all duties incident to the office of the Chairperson and such other duties as from time to time may be assigned to the Chairperson by the Board of Trustees. In the event of any vacancy in the office of the Chairperson, the Vice-Chairperson shall serve as Chairperson on an interim basis until such vacancy is filled by subsequent action of the Board of Trustees. C. Duties of the Vice-Chairperson. The Vice-Chairperson, if any, shall be selected fi•om among the Trustees and shall have such powers and duties as may from time to time be assigned to the Vice-Chairperson. The Vice-Chairperson will preside at meetings in the absence of the Chairperson. D. Duties of the Secretarv. The Secretary shall act as secretary of all meetings of the Board of Trustees and of the Treasurers and Chief Investment Officers. When requested, the Secretary shall also act as secretary of the meetings of the Committees of the Board of Trustees. The Secretary shall keep and preserve the minutes of all such meetings in permanent books. The Secretary shall see that all notices required to be given by the Trust Fund are duly given and served. The Secretary may, at the direction of the Board of Trustees, sign and execute in the name of the Trust Fund stock certificates, deeds, mortgages, bonds, contracts or other instruments, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Trustees or by this Agreement. The Secretary shall have custody of all deeds, leases, contracts and other important Trust Fund documents; shall have charge of the books, records and papers of the Trust Fund relating to its organization and management as a trust; and shall see that all reports, statements and other documents required by law are properly filed. PART 5 - MISCELLANEOUS PROVISIONS Section 501. TITLES. The titles to Parts and Sections of this Agreement are placed herein for convenience of reference only, and the Agreement is not to be construed by reference thereto. 20 As Approved by Board of Trustees, 9113113 Section 502. SUCCESSORS. This Agreement shall bind and inure to the benefit of the successors and assigns of the Trustees, the Treasurers and Chief Investment Officers, and the Participating Political Subdivisions. Section 503. COITNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original but all of which together shall constitute but one instrument, which may be sufficiently evidenced by any counterpart. Any Participating Political Subdivision that formally applies for participation in this Agreement by its execution of a Trust Joinder Agreement which is accepted by the Trustees shall thereupon become a party to this Agreement and be bound by all of the terms and conditions thereof, and said Trust Joinder Agreement shall constitute a counterpart of this Agreement. Section 504. AMENDMENT OR TERMINATION OF THIS AGREEMENT; TERMINATION OF PLANS. A. Duration. The Trust shall be perpetual, subject to the termination provisions contained in Section 504, Subsection C below. B. Amendment. This Agreement may be amended in writing at any time by the vote of a two-thirds (2/3) majority of the Trustees. Notwithstanding the preceding sentence, this Agreement may not be amended so as to change its purpose as set forth herein or to permit the diversion or application of any funds of the Trust Fund for any purpose other than those specified herein. The Board of Trustees, upon adoption of an amendment to this Agreement, shall provide notice by sending a copy of any such amendment to each Treasurer and Chief Investment Officer within 15 days of adoption of such amendment. If a Treasurer or Chief Investment Officer objects to such amendment, the Treasurer or Chief Investment Officer must provide written notice of its objection and intent to ternunate its participation in the Trust Fund by registered mail delivered to the Administrator within ninety (90) days of such notice, and if such notice is given, the amendments shall not apply to such Participating Political Subdivision for a period of 180 days from the date of adoption of such amendments. The Participating Political Subdivision's interest shall be terminated in accordance with the provisions of paragraph B of this section. C. Withdrawal and Termination. Any Participating Political Subdivision may at any time in its sole discretion withdraw and terminate its interest in this Agreement and any trust created hereby by giving written notice from the Participating Political Subdivision's Treasurer or Chief Investment Officer to the Trustees in the manner prescribed by this Section. The Trust Fund may be terminated in its entirety when all participation interests of all Participating Political Subdivisions have been terminated in their entirety. This Agreement and the Trust Fund will then be terminated in its entirety pursuant to Virginia law. 21 As Approved by Board of Trustees, 9113113 In case of a termination of this Agreement, either in whole or in part by a Participating Political Subdivision, the Trustees shall hold, apply, transfer or distribute the affected assets of the Trust Fund in accordance with the applicable provisions of this Agreement and as directed by the Treasurer or Chief Investment Officer of each Participating Political Subdivision. Upon any termination, in whole or in part, of this Agreement, the Trustees shall have a right to have their respective accounts settled as provided in this Section 504. In the case of the complete or partial termination of this Agreement as to one or more Participating Political Subdivisions, the affected assets of the Trust Fund shall continue to be held pursuant to the direction of the Trustees, for the benefit of the Participating Political Subdivision, until the Trustees, upon recommendation of the Administrator, distribute such assets to a Participating Political Subdivision, or other suitable arrangements for the transfer of such assets have been made. This Agreement shall remain in full effect with respect to each Participating Political Subdivision that does not terminate or withdraw its participation in the Trust Fund, or whose participation is not terminated by the Trustees. However, if distributions must be made, the Treasurer or Chief Investment Officer of each Participating Political Subdivision shall be responsible for directing the Administrator on how to distribute the beneficial interest of such Participating Political Subdivision. In the absence of such direction, the Administrator may take such steps as it determines are reasonable to distribute such Participating Political Subdivision's interest. A Participating Political Subdivision must provide written notice of its intent to terminate its participation in the Trust Fund by registered mail signed by the appropriate official of the subdivision and delivered to the Administrator. Notwithstanding the foregoing, the Trustees shall be required to pay out any assets of the Trust Fund to Participating Political Subdivisions upon termination of this Agreement or the Trust Fund, in whole or in part, upon receipt by the Trustees of written certification from the Administrator that all provisions of law with respect to such ternunation have been complied with. The Administrator shall provide the required written certification to the Trustees within three (3) working days of receiving a written notice of intent to terminate as described above. The Trustees shall rely conclusively on such written certification and shall be under no obligation to investigate or otherwise determine its propriety. When all of the assets of the Trust Fund affected by a termination have been applied, transferred or distributed and the accounts of the Trustees have been settled, then the Trustees and Administrator shall be released and discharged from all further accountability or liability respecting the Trust Fund, or portions thereof, affected by the termination and shall not be responsible in any way for the further disposition of the assets of the Trust Fund, or portions thereof, affected by the termination or any part thereof so applied, transferred or distributed; provided, however, that the Trustees shall provide full and complete accounting for all assets up through the date of final disposition of all assets held in the Trust. 22 As Approved by Board of Trustees, 9113113 Section 505. SPENDTHRIFT PROVISIONS• PROHIBITION OF ASSIGNMENT OF 1NTEREST. The Trust Fund shall be exempt from taxation and execution, attachment, garnishment, or any other process. No Participating Political Subdivision or other person with a beneficial interest in any part of the Trust Fund may commute, anticipate, encumber, alienate or assign the beneficial interests or any interest of a Participating Political Subdivision in the Trust Fund, and no payments of interest or principal shall be in any way subject to any person's debts, contracts or engagements, nor to any judicial process to levy upon or attach the interest or principal for payment of those debts, contracts, or engagements. Section 506. VIRGINIA FREEDOM OF INFORMATION ACT. The Administrator shall give the public notice of the date, time, and location of any meeting of the Board of Trustees' or of the Treasurers and Chief Investment Officers in the manner and as necessary to comply with the Virginia Freedom of Information Act (Va. Code §§ 2.2-3700 et seq.). The Secretary or its designee shall keep all minutes of all meetings, proceedings and acts of the Trustees and of Treasurers and Chief Inveshnent Officers, but such minutes need not be verbatim. Copies of all minutes of the Trustees and of Treasurers and Chief Investment Officers shall be sent by the Secretary or its designee to the Trustees. All meetings of the Board of Trustees and of Treasurers or Chief Investment Officers shall be open to the public, except as provided in § 2.2-3711 of the Virginia Code. No meeting shall be conducted through telephonic, video, electronic or other communication means where the members are not physically assembled to discuss or transact public business, except as provided in §§ 2.2-3708 or 2.2-3708.1 of the Virginia Code. Section 507. JURISDICTION. This Agreement shall be interpreted, construed and enforced, and the trust or trusts created hereby shall be administered, in accordance with the laws of the United States and of the Commonwealth of Virginia, excluding Virginia's law governing the conflict of laws. Section 508. SITUS OF THE TRUST. The situs of the trust or trusts created hereby is the Commonwealth of Virginia. All questions pertaining to its validity, construction, and administration shall be determined in accordance with the laws of the Commonwealth of Virginia. Venue for any action regarding this Agreement is the City of Richmond, Virginia. Section 509. CONSTRUCTION. Whenever any words are used in this Agreement in the masculine gender, they shall be construed as though they were also used in the feminine or neuter gender in all situations where they would so apply and whenever any words are used in this Agreement in the singular form, they shall be construed as though they were also used in the plural form in all situations where 23 As Approved by Board of Trustees, 9113113 they would so apply, and whenever any words are used in this Agreement in the plural form, they shall be construed as though they were also in the singular form in all situations where they would so apply. Section 510. CONFLICT. In resolving any conflict among provisions of this Agreement and in resolving any other uncertainty as to the meaning or intention of any provision of the Agreement, the interpretation that (i) causes the Trust Fund to be exempt from tax under Code Sections 115 and 501(a), and (ii) causes the participating Plan and the Trust Fund to comply with all applicable requirements of law shall prevail over any different interpretation. Section 511. NO GUARANTEES. Neither the Administrator nor the Trustees guarantee the Trust Fund from loss or depreciation or for the payment of any amount which may become due to any person under any participating Plan or this Agreement. Section 512. PARTIES BOIJND• NO THIRD PARTY RIGHTS. This Agreement and the Trust Joinder Agreements, when properly executed and accepted as provided hereunder, shall be binding only upon the parties hereto, i.e., the Board of Trustees, the Administrator and the Participating Political Subdivisions. Neither the establishment of the Trust nor any modification thereof, nor the creation of any fund or account shall be construed as giving to any person any legal or equitable right against the Trustees, or any officer or employee thereof, except as may otherwise be provided in this Agreement. Under no circumstances shall the term of employrnent of any Employee be modified or in any way affected by this Agreement. Section 513. NECESSARY PARTIES TO DISPUTES. Necessary parties to any accounting, litigation or other proceedings relating to this Agreement shall include only the Trustees and the Administrator. The settlement or judgment in any such case in which the Trustees are duly served or cited shall be binding upon all Participating Political Subdivisions and upon all persons claiming by, through or under them. Section 514. SEVERABILITY. If any provision of this Agreement shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of the Agreement shall continue to be fully effective. If any provision of the Agreement is held to violate the Code or to be illegal or invalid for any other reason, that provision shall be deemed to be null and void, but the invalidation of that provision shall not otherwise affect the trust created by this Agreement. [SIGNATURE PAGE FOLLOWS] 24 TRUST JOINDER AGREEMENT FOR PARTICIPATING POLITICAL SUBDIVISIONS IN THE VACo/VML VIRGINIA INVESTMENT POOL THIS TRUST JOINDER AGREEMENT is made by and between the City Treasurer of the City of Virginia Beach, Virginia (herein referred to as the "Treasurer"), the City of Virginia Beach, Virginia (herein referred to as the "Participating Political Subdivision"), and the Board of Trustees (herein collectively referred to as the "Trustees") of the VACo/VML Virginia Investment Pool (herein referred to as the "Trust Fund"). WITNESSETH: WHEREAS, the governing body of the Participating Political Subdivision desires to participate in a trust for the purpose of investing monies belonging to or within its control, other than sinking funds, in investments authorized under Section 2.2-4501 of the Virginia Code; and WHEREAS, the governing body of the Participating Political Subdivision has adopted an ordinance (a certified copy of which is attached hereto as Exhibit A) to authorize participation in the Trust Fund and has designated the Treasurer to serve as the trustee of the Participating Political Subdivision with respect to the Trust Fund and to determine what funds under the Treasurer's control shall be invested in the Trust Fund, and has authorized the Treasurer to enter into this Trust Joinder Agreement; and WHEREAS, the Trust Fund, in accordance with the terms of the VACo/VML Virginia Investment Pool Trust Fund Agreement (the "Agreement"), provides administrative, custodial and investment services to the Participating Political Subdivisions in the Trust Fund; and WHEREAS, the Treasurer, upon the authorization of the governing body of City of Virginia Beach, Virginia, desires to submit this Trust Joinder Agreement to the Trustees to enable the City to become a Participating Political Subdivision in the Trust Fund and a party to the Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements flowing to each of the parties hereto, it is agreed as follows: 1. Pursuant to the Board of Trustees' acceptance of this Trust Joinder Agreement, the City of Virginia Beach, Virginia, is a Participating Political Subdivision in the Trust Fund, as provided in the Agreement, and the Treasurer is authorized to enter into this Trust Joinder Agreement, and to represent and vote the beneficial interest of the City of Virginia Beach in the Trust Fund in accordance with the Agreement. 2. Capitalized terms not otherwise defined in this Trust Joinder Agreement have the meaning given to them under the Agreement. 3. The Treasurer shall cause funds for deposit on behalf of the Participating Political Subdivision in the Trust Fund to be deposited into a depository designated by the Trustees. 4. The Treasurer shall timely remit, or timely approve the remittance of, subject to appropriation by the City Council, administrative fees as may be due and payable by the Participating Employer under the Agreement into a depository designated by the Trustees. 5. The Participating Political Subdivision shall have no right, title or interest in or to any specific assets of the Trust Fund, but shall have an undivided beneficial interest in the Trust Fund; however, there shall be a specific accounting of assets allocable to the Participating Political Subdivision. 6. The Treasurer shall provide to the Administrator designated by the Trustees all relevant information reasonably requested by the Administrator for the administration of the Participating Political Subdivision's investment, and shall promptly update all such information. The Treasurer shall certify said information to be correct to the best of his knowledge, and the Trustees and the Administrator shall have the right to rely on the accuracy of said information in performing their contractual responsibilities. 7. The Trust Fund provides administrative, custodial and investment services to the Participating Political Subdivision in accordance with the Agreement. 8. The Trustees and the Administrator, in accordance with the Agreement and the policies and procedures established by the Trustees, shall periodically report Trust activities to the Participating Political Subdivision on a timely basis. 9. The Treasurer and the Participating Political Subdivision agree to abide by and be bound by the terms, duties, rights and obligations as set forth in the Agreement, as may be amended by the Trustees, which is attached hereto and is made a part of this Trust Joinder Agreement. 10. The Treasurer, in fulfillment of his duties as the trustee of the Participating Political Subdivision, retains the services of the Investment Manager ar Managers selected by the Trustees pursuant to the Agreement. ll. The term of this Trust Joinder Agreement shall be indefinite. The Treasurer may terminate this Trust Joinder Agreement on behalf of the Participating Political Subdivision by giving notice in writing to the Trustees. Termination shall be governed by the provisions of the Agreement. IN WITNESS WHEREOF, the Treasurer has caused this Trust Joinder Agreement to be executed this day of 12014. 2 CITY TREASURER, John T. Atkinson Approved as to Legal Sufficiency: Office of the City Attorney ACCEPTANCE: VACo/VML VIRGINIA INVESTMENT POOL Virginia Local Government Finance Corporation By: Administrator City of VirgirZia Beach • ?, ?7. py 2, r' OF DUR NAS1ON WILLIAM D. SESSOMS, JR. MAYOR In Reply Refer to 0051325 Februaiy 25, 2014 Mrs. Ruth Hodges Fraser, MMC City Clerk Municipal Center Virginia Beach, Virginia 23456 VBgOV.C0171 MUNICIPAL CENTER BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH, VA 23456-9000 (757) 385-4581 FAX (757) 385-5699 wsessoms@vbgov.com Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115 (F) Dear Mrs. Fraser: Yursuant to the State and Local Government Conflict of Interests Act, I make the following declaration: I am executing this written disclosure regarding City Council's discussion and vote on (1) A Resolution to Adopt a Revised Policy for ihe Investment of City Funds; and (2) An Ordinance to Adopt the VACo/VML Virginia lnvestment Pool Trust Fund for the Purpose of Investing Certain City Funds within the City Treasurer's Control. 2. I am an off'icer of Towne Financial Services, which is an aff liate of TowneBank and is located at 600 22°d Street in Virginia Beach. 3. Although the City Attorney has advised me that the Conflict of Interests Act provides that I have no conflict and may participate in this transaction without restriction, 1 nevertheless wish to voluntarily abstain from voting on these two items. Accordingly, I respectfully request that you record this declaration in the official records of City Council. Mrs. Ruth Hodges Fraser -2- February 25, 2014 Re: Abstention Pursuant to Conllict of Interests Act § 2.2-31 15 (F) "I'hank you for your assistance and cooperatioil in this matter. Sinccrcly, i Ai ? W iam D. Ses )ms Mayor WDS/RRI -54- Itena -V-K.10a/b ORDINANCES/RESOL UTIONS ITEM #63540 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, re LESNER BRIDGE replacement: a. Resolution to REQUEST the Virginia Department of Transportation (VDOT) designate the Lesner Bridge replacement as a Revenue Sharing Program project b. Ordinance to ACCEPT and APPROPRIATE state and federal ficnding from the Virginia Department of Transportation (VDOT) and TRANSFER those funds within the roadway program Voting: I1-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay.• None Council Members Absent: None February 25, 2014 1 A RESOLUTION TO REQUEST THAT THE VIRGINIA 2 DEPARTMENT OF TRANSPORTATION DESIGNATE THE 3 LESNER BRIDGE REPLACEMENT (CIP # 2-168) AS A 4 REVENUE SHARING PROGRAM PROJECT 5 6 WHEREAS, the bids received for the construction of the Lesner Bridge 7 Replacement came in above the budgeted amount; and 8 9 WHEREAS, the City must request that VDOT designate the Lesner Bridge 10 Replacement project (CIP # 2-168) as a Revenue Sharing project to be eligible to 11 transfer funding. 12 13 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 14 VIRGINIA BEACH, VIRGINIA: 15 16 1. That the City of Virginia Beach City Council hereby requests that the Virginia 17 Department of Transportation designate the Lesner Bridge Replacement project (CIP # 18 2-168) as a revenue sharing project to be eligible to transfer Revenue Sharing funding 19 from other existing Revenue Sharing projects. 20 21 2. That the City Manager is hereby authorized to execute on behalf of the City of 22 Virginia Beach all necessary project agreements for project development and 23 construction. Adopted by the Council of the City of Virginia Beach, Virginia on the 2 5 t hday of February , 2014. APPROVED AS TO CONTENT: Budget and Management Services APPROVED AS TO LEGAL SUFFICIENCY: Ci r s0'e CA12887 R-2 February 13, 2014 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE STATE 2 AND FEDERAL FUNDING FROM THE VIRGINIA 3 DEPARTMENT OF TRANSPORTATION AND TO 4 TRANSFER STATE AND LOCAL FUNDING WITHIN THE 5 ROADWAY PROGRAM TO CIP 2-168 6 7 WHEREAS, the City Council was presented with a resolution to designate the 8 Lesner Bridge Replacement as a state revenue sharing project at the same meeting as 9 this ordinance; 10 11 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 12 VIRGINIA: 13 14 1. That $2,587,807 in additional pass-through federal funding from the Virginia 15 Department of Transportation is hereby accepted and appropriated, with federal 16 sources increased accordingly, to CIP # 2-168 -"Lesner Bridge Replacement;" 17 18 2. That $326,327 in state revenue sharing funding is hereby transferred from CIP # 19 2-018 -"Major Intersection Improvements" to CIP # 2-168 -"Lesner Bridge 20 Replacement;" and 21 22 3. That $5,000,000 in state revenue sharing funding and $5,326,327 in local funding 23 is hereby transferred from CIP # 2-409 -"Centerville Turnpike - Phase II" to CIP # 2- 24 168 - "Lesner Bridge Replacement." Adopted by the Council of the City of Virginia Beach, Virginia on the 25th day of February 2014. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: Budget and Management ervices APPROVED AS TO LEGAL SUFFICIENCY: City ce CA12894 R-1 February 13, 2014 ?r i• ? ??.`A' V . ?.'', ? y? /, •?. v.? ? ? ?.. 4K (a t U C ?C ,L 'C ? ?-] t.. ?. k ? ( ? ; `-• l ?? 1NO`dr ".ur ? .? ? ? ?V-? Q ? ? Z LLI 2 , U ? 1 r? ; ? ? ? 'ML W L N ? o co Q O aco Z•?a..r, Om dN o E a 0 ?,aj t?n t?i U N ? 0 ,.;.. ? . . . . ? N d > i ? ? ? C ? J a ? 1\1 '- 0 >?- ? / 1 Y N U ? ? ? ? ? ? -55- Item -V-K.ll ORDINANCES/RESOL UTIONS ITEM #63541 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to AUTHORIZE a temporary encroachment into a portion of City property at "the Boat Basin " in Murray's Creek for SHEILA P. ELDRIDGE re gazebo, bulkhead, landscape buffer and open pile timber pier at 1138 Milissa Court BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance to AUTHORIZE a temporary encroachment into a portion of City property at "the Boat Basin " in Murray's Creek for SHEILA P. ELDRIDGE re gazebo, bulkhead, landscape buffer and open pile timber pier at 1138 Milissa Court The following conditions shall be required: 1. The Temporary Encroachments will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach and in accordance with the City's specifications and approval. 2. Nothing herein shall prohibit the City from immediately removing, or ordering the Grantee to remove, all or any part of the Temporary Encroachments from the Encroachment Area in the event of an emergency or public necessity and Grantee shall bear all costs and expenses of such Yemoval. 3. It is further expressly understood and agreed that the Temporary Encroachments herein authorized terminates upon notice by the City to the Grantee and that within thirty (30) days after the notice is given, the Temporary Encroachments must be removed from the Encroachment Area by the Grantee and that the Grantee will bear all costs and expenses of such removal. 4. It is further expressly understood and agreed that the Grantee shall indemnify, hold harmless, and defend the City, its agents and employees, from and against all claims, damages, losses and expenses, including reasonable attorney's fees, in case it shall be necessary to file or defend an action arising out of the construction, location or existence of the Temporary Encroachments. 5. It is further expressly understood and agreed that nothing herein contained shall be construed to enlarge the permission and authority to permit the maintenance or construction of any encroachinent other than that specified herein and to the limited extent specified herein, nor to permit the maintenance and construction of any encroachment by anyone other than the Grantee. 6 It is further expressly understood and agreed that the Grantee agrees to maintain the Temporary Encroachments so as not to become unsightly or a hazard. 7. It is further expressly understood and agreed that the Grantee must obtain a permit from the Civil Inspections Division of the Department of Planning prior to commencing any construction within the Encroachment Area (the "Permit' ). February 25, 2014 -56- Item -V-K.Il ORDINANCES/RESOL UTIONS ITEM #63541(Continued) 8. It is further expressly understood and agreed that the Grantee shall establish and maintain a Riparian Buffer, as shown on Exhibit "A ", dated July 15, 2013. The Buffer shall consist of a mulched planting bed and contain a mixture of shrubs, miscellaneous ground cover and perennial plants of a size and species of the Grantee 's choice, to be planted fifteen (15) feet landward of the bulkhead (the `Buffer'). The Buffer shall not be established during the months of June, July or August so that it has the greatest likelihood of survivability. Prior to the City issuing a Permit, the Grantee must post a bond, or other security, in an amount equal to the estimated cost of the required Buffer plantings to the Department of Planning/Environment and Sustainability Office to insure completion of the required Buffer. The Grantee shall notify the Department of Planning/Environment and Sustainability Office when the Buffer is complete and ready for inspection. Upon satisfactory completion of the Buffer, as determined by the City, the bond shall be released. An access path, stabilized appropriately to prevent erosion through the Buffer to the shoreline, is allowed. 9. It is further expressly understood and agreed that the Grantee must obtain and keep in effect liability insurance with the City as a named insured in an amount not less than $500, 000.00, per person injured and property damage per incident combined with the City listed as an additional insured. The company providing the insurance must be registered and licensed to provide insurance in the Commonwealth of Virginia. The Grantee will provide endorsements providing at least thirty (30) days written notice to the City prior to the cancellation or termination of, or material change to, any of the insurance policies. The Grantee assumes all responsibilities and liabilities, vested or contingent, with relation to the construction, location and/or existence of the Temporary EncYOachments. 10. It is further expressly understood and agreed that the Temporary Encroachments must conform to the minimum setback requirements, as established by the City. 11. It is further expressly understood and agreed that the Grantee must submit for review and approval, a survey of the Encroachment Area, certified by a Registered Professional Engineer or a Licensed Land Surveyor, and/or "as built" plans of the Temporary Encroachments sealed by a Registered Professional Engineer, if required by either the Department of Public Works City Engineer's Office or the Engineering Division of the Department of Public Utilities. 12. It is further expressly understood and agreed that the City, upon revocation of such authority and permission so granted, may remove the Temporary Encroachments, charge the cost thereof to the Grantee, collect the cost in any manner provided by law for the collection of local or state taxes and may require the GYantee to remove the Temporary Encroachments. Pending such removal, the City may charge the Grantee for the use of the Encroachment Area the equivalent of what would be the real property tax upon the land so occupied if it were owned by the GYantee. If such removal shall not be made within the time ordered hereinabove by this Agreement, the City may impose a penalty in the sum of One Hundred Dollars ($100.00) per day for each and every day the Temporary Encroachments are allowed to continue thereafter and may collect such compensation and penalties in any manner provided by law for the collection of local or state taxes. February 25, 2014 -57- Item -V-K.ll ORDINANCES/RESOL UTIONS Voting: I1-0 Council Members Voting Aye: ITEM #6354I (Continued) Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None FebYUary 25, 2014 1 Requested by Department of Public Works 2 3 AN ORDINANCE TO AUTHORIZE 4 TEMPORARY ENCROACHMENTS 5 INTO A PORTION OF CITY 6 PROPERTY KNOWN AS "THE BOAT 7 BASIN" IN MURRAY'S CREEK, 8 LOCATED AT THE REAR OF 1138 9 MILISSA COURT, FOR PROPERTY lo OWNER SHEILA P. ELDRIDGE 11 12 WHEREAS, Sheila P. Eldridge desires to maintain an existing gazebo and 13 bulkhead, to install and maintain a proposed landscape buffer and to remove, 14 reconstruct and maintain an open pile timber pier upon a portion of City property known 15 as "the Boat Basin" in Murray's Creek, located at the rear of 1138 Milissa Court, in the 16 City of Virginia Beach, Virginia; and 17 18 WHEREAS, City Council is authorized pursuant to §§ 15.2-2009 and 15.2-2107, 19 Code of Virginia, 1950, as amended, to authorize temporary encroachments upon the 20 City's property subject to such terms and conditions as Council may prescribe. 21 22 NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 23 VIRGINIA BEACH, VIRGINIA: 24 That pursuant to the authority and to the extent thereof contained in §§ 15.2- 2s 2009 and 15.2-2107, Code of Virginia, 1950, as amended, Sheila P. Eldridge, her heirs, 26 assigns and successors in title are authorized to maintain temporary encroachments for 27 an existing gazebo and bulkhead, to install and maintain a proposed landscape buffer 28 and to remove, reconstruct and maintain an open pile timber pier in a portion of existing 29 City property known as "the Boat Basin" in Murray's Creek, as shown on the map 30 marked Exhibit "A" and entitled: "EXHIBIT A ENCROACHMENT DRAWING SHOWING 31 OPEN PILE TIMBER PIER LOCATED IN MURRAY'S CREEK FOR SHEILA 32 ELDRIDGE 1138 MILISSA COURT VIRGINIA BEACH, VA 23464 LOT 18A, 33 SUBDIVISION OF LOT 18, BLOCK G, "SHERRY PARK", SECTION 3 MAP BOOK 30, 34 PAGE 5 SCALE: 1" = 50'-0" JULY 15, 2013," a copy of which is on file in the 35 Department of Public Works and to which reference is made for a more particular 36 description; and 37 38 BE IT FURTHER ORDAINED that the temporary encroachments are expressly 39 subject to those terms, conditions and criteria contained in the Agreement between the 40 City of Virginia Beach and Sheila P. Eldridge (the "Agreement"), which is attached 41 hereto and incorporated by reference; and 42 43 BE IT FURTHER ORDAINED that the City Manager or his authorized designee is 44 hereby authorized to execute the Agreement; and 45 46 BE IT FURTHER ORDAINED that this Ordinance shall not be in effect until such 47 time as Sheila P. Eldridge and the City Manager or his authorized designee execute the 4 $ Agreement. 49 ?dopted by the Council of the City of Virginia Beach, Virginia, on the 25th day 50 Of Fe ruary , 2014. CA-12739 R-1 PREPARED: 02/07/2014 APPROVED AS TO CONTENTS ?PUB?LIC WORKS, REAL ESTATE APPROVED AS TO LEGAL SUFFICIENCY AND FORM .._ . _. ., ITY ATTORNEY a- \C- DATE PUBLIC WORKS / REAL ESTATE DEPARTMENT / DIVISION PREPARED BY VIRGINIA BEACH CITY ATTORNEY'S OFFICE (BOX 31) EXEMPTED FROM RECORDATION TAXES UNDER SECTION 58.1-811(C) (4) THIS AGREEMENT, made this 8th day of February, 2014, by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a municipal corporation of the Commonwealth of Virginia, Grantor, "City", and SHEILA P. ELDRIDGE, HER HEIRS, ASSIGNS AND SUCCESSORS IN TITLE, "Grantee", even though more than one. W ITNESSETH: WHEREAS, the Grantee is the owner of that certain lot, tract, or parcel of land designated and described as "Lot 18-A, Block G, Section 3", as shown on that certain plat entitled: "SUBDIVISION OF LOT 18, BLOCK "G" "SHERRY PARK" SECTION-3 KEMPSVILLE MAG. DIST., PRINCESS ANNE CO., VA. Scale: 1" = 100' June, 1960", prepared by FRANK D. TARRALL, Jr., a certified land surveyor for FRANK D. TARRALL, JR. & ASSOCIATES SURVEYORS & ENGINEERS NORFOLK, VA. - VIRGINIA BEACH, VA., and said plat is recorded in the Clerk's Office of the Circuit Court of the City of Virginia Beach, Virginia in Map Book 50, at page 25, and being further designated, known, and described as 1138 Milissa Court, Virginia Beach, Virginia 23464; WHEREAS, it is proposed by the Grantee to maintain an existing gazebo and bulkhead and to remove, reconstruct and maintain an open pile timber pier, collectively, the "Temporary Encroachments", in the City of Virginia Beach; and GPIN: (NO GPiN REQUIRED OR ASSIGNED TO CITY PROPERTY KNOWN AS "THE BOAT BASIN" IN MURRAY'S CREEK) 1456-18-6039-0000; (1138 Milissa Court) WHEREAS, in constructing and maintaining the Temporary Encroachments, it is necessary that the Grantee encroach into a portion of City property known as "the Boat Basin" in Murray's Creek, located at the rear of 1138 Milissa Court, the "Encroachment Area"; and WHEREAS, the Grantee has requested that the City permit the Temporary Encroachments within the Encroachment Area.. NOW, THEREFORE, for and in consideration of the premises and of the benefits accruing or to accrue to the Grantee and for the further consideration of One Dollar ($1.00), cash in hand paid to the City, receipt of which is hereby acknowledged, the City hereby grants to the Grantee permission to use the Encroachment Area for the purpose of constructing and maintaining the Temporary Encroachments. It is expressly understood and agreed that the Temporary Encroachments will be constructed and maintained in accordance with the laws of the Commonwealth of Virginia and the City of Virginia Beach, and in accordance with the City's specifications and approval and is more particularly described as follows, to wit: Temporary Encroachments into the Encroachment Area as shown on that certain exhibit plat entitled: "EXHIBIT A ENCROACHMENT DRAWING SHOWING OPEN PILE TIMBER PIER LOCATED IN MURRAY'S CREEK FOR SHEILA ELDRIDGE 1138 MILISSA COURT VIRGINIA BEACH, VA 23464 LOT 18A, SUBDIVISION OF LOT 18, BLOCK G, "SHERRY PARK", SECTION 3 MAP BOOK 30, PAGE 5 SCALE: 1" = 50'-0" JULY 15, 2013," a copy of which is attached hereto as Exhibit "A" and to which reference is made for a more particular descriptior. Providing however, nothing herein shall prohibit the City from immediately removing, or ordering the Grantee to remove, all or any part of the Temporary Encroachments from the Encroachment Area in the event of an emergency or public necessity, and Grantee shall bear all costs and expenses of such removal. 2 It is further expressly understood and agreed that the Temporary Encroachments herein authorized terminates upon notice by the City to the Grantee, and that within thirty (30) days after the notice is given, the Temporary Encroachments must be removed from the Encroachment Area by the Grantee; and that the Grantee will bear all costs and expenses of such removal. It is further expressly understood and agreed that the Grantee shall indemnify, hold harmless, and defend the City, its agents and employees, from and against all claims, damages, losses and expenses, including reasonable attorney's fees, in case it shall be necessary to file or defend an action arising out of the construction, location, or existence of the Temporary Encroachments. It is further expressly understood and agreed that nothing herein contained shall be construed to enlarge the permission and authority to permit the maintenance or construction of any encroachment other than that specified herein and to the limited extent specified herein, nor to permit the maintenance and construction of any encroachment by anyone other than the Grantee. It is further expressly understood and agreed that the Grantee agrees to maintain the Temporary Encroachments so as not to become unsightly or a hazard. It is further expressly understood and agreed that the Grantee must obtain a permit from the Civil Inspections Division of the Department of Planning prior to commencing any construction within the Encroachment Area (the "Permit"). It is further expressly understood and agreed that the Grantee shall establish and maintain a riparian buffer, as shown on Exhibit "A", dated July 15, 2013. The Buffer shall consist of a 15-foot-wide vegetated riparian buffer area, consisting of shrubs, miscellaneous ground cover and perennial plants in a mulched planting bed runring the er#irety cf the shoreline, ad;oining the applicants property of a size and 3 species of the Grantee's choice, (the "Buffer"). The Buffer shall not be established during the months of June, July, or August, so that it has the greatest likelihood of survivability. Prior to the City issuing a Permit, the Grantee must post a bond or other security, in an amount equal to the estimated cost of the required Buffer plantings, to the Department of Planning/Environment and Sustainability Office to insure completion of the required Buffer. The Grantee shall notify the Department of Planning/Environment and Sustainability Office when the Buffer is complete and ready for inspection; upon satisfactory completion of the Buffer as determined by the City, the bond shall be released. An access path, stabilized appropriately to prevent erosion, through the Buffer to the shoreline is allowed. It is further expressly understood and agreed that the Grantee must obtain and keep in effect liability insurance with the City as a named insured in an amount not less than $500,000.00, per person injured and property damage per incident combined with the City listed as an additional insured. The company providing the insurance must be registered and licensed to provide insurance in the Commonwealth of Virginia. The Grantee will provide endorsements providing at least thirty (30) days written notice to the City prior to the cancellation or termination of, or material change to, any of the insurance policies. The Grantee assumes all responsibilities and liabilities, vested or contingent, with relation to the construction, location, and/or existence of the Temporary Encroachments. It is further expressly understood and agreed that the Temporary Encroachments must conform to the minimum setback requirements, as established by the City. It is further expressly understood and agreed that the Grantee must submit for rsv;ew and approval, a survey of the Encroachmer.t Are?, certified by a 4 registered professional engineer or a licensed land surveyor, and/or "as built" plans of the Temporary Encroachments sealed by a registered professional engineer, if required by either the Department of Public Works City Engineer's Office or the Engineering Division of the Department of Public Utilities. It is further expressly understood and agreed that the City, upon revocation of such authority and permission so granted, may remove the Temporary Encroachments and charge the cost thereof to the Grantee, and collect the cost in any manner provided by law for the collection of local or state taxes; may require the Grantee to remove the Temporary Encroachments; and pending such removal, the City may charge the Grantee for the use of the Encroachment Area, the equivalent of what would be the real property tax upon the land so occupied if it were owned by the Grantee; and if such removal shall not be made within the time ordered hereinabove by this Agreement, the City may impose a penalty in the sum of One Hundred Dollars ($100.00) per day for each and every day that the Temporary Encroachments are allowed to continue thereafter, and may collect such compensation and penalties in any manner provided by law for the collection of local or state taxes. IN WITNESS WHEREOF, Sheila P. Eldridge, the said Grantee, has caused this Agreement to be executed by her signature. Further, that the City of Virginia Beach has caused this Agreement to be executed in its name and on its behalf by its City Manager and its seal be hereunto affixed and attested by its City Clerk. (THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK) 5 CITY OF VIRGINIA BEACH By (SEAL) City Manager/Authorized Designee of the City Manager STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: The foregoing instrument was acknowledged before me this day of , 2014, by , CITY MANAGER/AUTHORIZED DESIGNEE OF THE CITY MANAGER OF THE CITY OF VIRGINIA BEACH, VIRGINIA, on its behalf. He/She is personally known to me. Notary Public Notary Registration Number: My Commission Expires: (SEAL) ATTEST: City Clerk/Authorized Designee of the City Clerk STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: (SEAL) The foregoing instrument was acknowledged before me this day of , 2014, by , CITY CLERK/AUTHORIZED DESIGNEE OF THE CITY CLERK OF THE CITY OF VIRGINIA BEACH, VIRGINIA, on its behalf. She is personally known to me. Notary Public Notary Registration Number: My Commission Expires: 6 (SEAL) ?? ?? BZ Sheila P. Eldri ge, Owner STATE OF t/! /` l? ?-- CITY/COUNTY O tAzcA# , to-wit: The foregoing instrument was acknowledged before me this 84 day of ?, 2014, by Sllella P. EICICIdg@. ALIAKSANDR HUSEU Notary Public Commonwealth of Virginia , 7-, 7364171 My Commission Expires Sep 30, 2014 / - Notary Public Notary Registration Number: 7-3 61? /76 My Commission Expires: ?ZO Iq APPROVED AS TO CONTENTS SIGNATURE ?jr_.-)4 DATE PtJBLIC WORKS / REAL ESTATE DEPARTMENT / DIVISION 7 APPROVED AS TO LEGAL SUFFICIENCY AND FORM EXHIBIT A ENCROACHMENT DRAWING SHOWING OPEN PILE TIMBER PIER LOCATED IN MURRAY'S CREEK ALL WORK TO BE COMPLETED BY BARGE EXISTING EXISTING GAZEBO-1 F BULKHEAD , FOR SHEILA ELDRIDGE 1138 MILISSA COURT 20 VIRGINIA BEACH, VA 23464 LOT 18A, SUBDIVISION OF LOT 18, BLOCK G, "SHERRY PARK", SECTION 3 MAP BOOK 30, PAGE 5 SCALE: I" = 50'-0" JULY 15, 2013 0 50' 100' 15A' CHARLES J. JOHNSON 1136 Miussa CT. GPiN: 1456185156 M.B. /144 PG. 39 INSTRUMENT N0. - 200501110005591 ? O\ ' ^- 3 ? P L10, ? ?G ? ? - EXISTING? s OPEN PILE TIMBER PIER TO BE REMOVED "y< ? -SALI,? .BUSH, SPARTINA AND URLAND WETLAND G RASSES? PROPOSE? OPEN PILE , IMBER PIER? ' NEW 1200 S. F. ? \ ? \\ C? \ ON . PROPERTY IS ZONED RIO N / _ , \0 1132 MiussA CT ? 1133 Miussa CT. FRANCISCUS & KATHLEEN ROLAF . RoBERTA J. ADAMS GPIN: 1456176924 5b GPiN: 1456184025 M.B. 59 / M.B. PAGE: 25 PG. I DB. 3148 PG.381 DB. 2250 PG.121 ?A 00? EXISTING SALT BUSHES TREES SHALL BE LIMBED ? UP / TRIMMED AS REQUIRED ? FOR MORE SUN EXPOSURE IN R= 50'/ / L THE NEW BUFFER AREA. = 24?2' , MILISSA COURT @mi 9 igY Ibu I CN DCm °V= 1138 Milissa Court z ._ - ? ? H tA W W ? H LL o ? a aCl co N ul 10 Q ? ? ov E- w co r Owatl?co f o ? Q= J J ? ? a a a= a ? o 00a ? O ? M ? a U ? Z? o LL ? W a a _ S?tH 1?. ti ? 0) M O co c& ? c? ? ? f ? f ..., . L? ? . ..; , , , ; '•.. ? ? ?? `4 O m l J L a a ? -58- Item -V-K.l2a ORDINANCES/RESOL UTIONS ITEM #63542 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT, APPROPRIATE and TRANSFER: a. $523, 003 from various buildings rehabilitation and renewal, Phase III, to Economic Development and the Strategic Growth Area Offices Voting: 10-1 Coaincil Members YotingAye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Poting Nay: John D. Moss Council Members Absent: None February 25, 2014 1 AN ORDINANCE TO TRANSFER FUNDS FROM CAPITAL 2 PROJECT #3-137, VARIOUS BUILDINGS 3 REHABILITATION AND RENEWAL - PHASE III, TO PAY 4 FOR COSTS ASSOCIATED WITH THE RELOCATION OF 5 THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND 6 THE STRATEGIC GROWTH AREA OFFICE 7 8 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 9 VIRGINIA, THAT: 10 11 That $523,003 is hereby transferred from Capital Project #3-137, Various 12 Buildings Rehabilitation and Renewal - Phase III, to the FY 2013-14 Operating Budget 13 of the Department of Economic Development ($379,085) and the Strategic Growth Area 14 Office ($143,918) to pay for costs associated with the relocation of offices. Adopted by the Council of the City of Virginia Beach, Virginia on the 25th day of February 2014. , APPROVED AS TO CONTENT: f ? Budget and Management Services APPOROVED AS TO LEGAL SUFFICIENCY: City tt ' ice CA12893 R-1 February 10, 2014 -59- Item -V-K.12b ORDINANCES/RESOL IITIONS ITEM #63543 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT, APPROPRIATE and TRANSFER: b. $513,050 from the School Site Landscaping Internal Service to Parks and Recreation re landscape projects Voting: 11-0 Council Members Yoting Aye: Robert M. Dyer, BaYbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE TO APPROPRIATE $513,050 2 IN FUND BALANCE FROM THE SCHOOL SITE 3 LANDSCAPING INTERNAL SERVICE FUND 4 TO THE DEPARTMENT OF PARKS AND 5 RECREATION 6 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 7 VIRGINIA: 8 That $513,050 is hereby appropriated from the fund balance of the School Site 9 Landscaping Internal Service Fund, with specific fund reserves increased accordingly, 10 to the Parks and Recreation Department's Landscape Management Division to execute 11 landscape projects at various school locations. Adopted by the Council of the City of Virginia Beach, Virginia on the 25th day of February 2014. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: .?-..._._ ? Budget and_Management Servic s Ci y Att s ice CA12876 R-2 February 14, 2014 -60- Item -V-K.I2c ORDINANCES/RESOL UTIONS ITEM #63544 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT, APPROPRIATE and TRANSFER: c. $ 90, 000 interest free loan to the Plaza Rescue Squad re a new ambulance Yoting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 AN ORDINANCE TO APPROPRIATE FUNDS TO PROVIDE AN INTEREST-FREE LOAN TO THE PLAZA RESCUE SQUAD FOR THE PURCHASE OF A NEW AMBULANCE WHEREAS, the Plaza Volunteer Fire Company and Rescue Squad, Inc. ("Plaza Rescue Squad") has requested an interest free loan of $90,000 to purchase a replacement ambulance with estimated cost of $209,500. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. That $90,000 is hereby appropriated from the fund balance of the General Fund for an interest-free loan to the Plaza Rescue Squad for a portion of the purchase price of a new ambulance; and 2. That this loan is to be repaid by Plaza Rescue Squad over three (3) years, pursuant to the terms of the attached agreement and promissory note. Adopted by the Council of the City of Virginia Beach, Virginia on the 25th day of February ,2014 Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT ?k-d a . "i ?? Budget and Management Servi es APP GAL SUFFICIENCY: CA12888 R-2 February 17, 2014 Agreement between the City of Virginia Beach and the Plaza Volunteer Fire Company and Rescue Squad, Inc. THIS AGREEMENT is made and entered into this day of , 2014, by and between the CITY OF VIRGINIA BEACH, VIRGINIA ("CITY") and the Plaza Volunteer Fire Company and Rescue Squad Inc., a Virginia nonstick corporation ("RESCUE SQUAD"), in accordance with the provisions of Code of Virginia §§ 27-15.2 and 27-23.6. WHEREAS, the RESCUE SQUAD maintains equipment and personnel for emergency medical services within the City of Virginia Beach; and WHEREAS, the RESCUE SQUAD desires to provide the CITY with qualified and certified volunteer personnel and equipment to provide emergency medical services, and WHEREAS, the CITY hereto desires to support the volunteer emergency medical services in Virginia Beach provided by the RESCUE SQUAD; and WHEREAS, it is mutually deemed sound, desirable, practicable, and beneficial for the parties to enter into this agreement to render support and services to one another in accordance with these terms. WITNESSETH For and in consideration of the mutual promises and covenants set forth herein, and for other valuable consideration related to the acquisition of a vehicle, the parties enter into the following agreement as defined below: RESPONSIBILITIES OF THE CITY A. Provide a no interest loan for the purchase of the vehicle. B. Provide standardized equipment required for operations within the City including, but not limited to mobile communications devices, pagers, and map books. C. Provide or pay for insurance covering emergency service and support vehicles owned by the RESCUE SQUAD. D. Provide fuel for the vehicle. E. Provide all vehicle maintenance and inspection services, including payment of the annual maintenance fee, in support of the vehicle through the CITY's Division of Automotive Services, so long as the vehicle remains a CITY-insured vehicle. The Division of Automotive Services shall maintain maintenance records and allow the RESCUE SQUAD's officers access to those records. RESPONSIBILITIES OF THE RESCUE SQUAD A. The RESCUE SQUAD shall repay the loan far the vehicle according to the Promissory Note. The RESCUE SQUAD shall have the ability to request reasonable relief on the due date/amount should extenuating circumstances occur. This request shall be made to the EMS Chief no less than 30 days prior to the payment due date, and the EMS Chief may provide an extension not to exceed six months upon a written determination that the extension is the result of extenuating circumstances. No more than one extension shall be granted without authorization from the City Council. B. If the vehicle is sold, after satisfying all conditions of the loan, including repayment, the CITY-owned equipment shall be removed and returned to the CITY prior to the sale of the vehicle, unless prior arrangements have been made to reimburse the CITY for the fair market value of the CITY-owned equipment. C. If, notwithstanding the provisions of subsection E in the prior section, the RESCUE SQUAD elects not to use the services of the CITY's Division of Automotive Services for any and all maintenance and inspection services, it shall be the responsibility of the RESCUE SQUAD to maintain the vehicle in accordance with the manufacturer's recommended maintenance schedule and procedures. The RESCUE SQUAD shall pay for all necessary maintenance and repairs and shall only use repair shops that are acceptable to the EMS Chief. DEFAULT AND MODIFICATION A. In the event that the RESCUE SQUAD defaults on the loan, the CITY may in its sole discretion agree to a modification of this agreement, in accordance with the modification procedure set forth in the next subsection. If the parties do not agree in writing to a modification of this agreement, then, upon default of the loan, ownership of the vehicle shall revert to the CITY. The CITY shall provide a rebate to the RESCUE SQUAD based on the net difference between the fair market value of the vehicle and the unpaid portion of the loan. If the CITY and the RESCUE SQUAD are unable to agree upon the fair market value of the vehicle, the parties shall select a third party who is acceptable to both the CITY and the RESCUE SQUAD to determine the vehicle's fair market value. B. This agreement may be reviewed at any time upon the direction of the City Manager. Each party must agree in writing to any subsequent modifications. IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. CITY OF VIlZGINIA BEACH PLAZA VOLUNTEER FIRE COMPANY AND RESCUE SQUAD, INC. City Manager/Authorized Designee ATTEST: City Clerk APPROVED AS TO CONTENT: Virginia Beach EMS Chief APPROVED AS TO RISK MANAGEMENT: Virginia Beach Risk Management By: _ Title: Date APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office 2 PROMISSORY NOTE $90,000 Virginia Beach, Virginia February 26, 2014 FOR VALUE RECEIVED, Plaza Volunteer Fire Company and Rescue Squad, Inc. ("Maker") promises to pay, without offset, to the order of the City of Virginia Beach, ("Noteholder") at Municipal Center, Virginia Beach, VA, or such other place as Noteholder may designate in writing, the principal sum of NINETY THOUSAND DOLLARS ($90,000) together with interest thereon. From the date of this Note, interest on the unpaid principal balance shall accrue at the rate of ZERO Percent (0%) per annum. Payment on principal shall be as follows: On or before March 1, 2015 -$30,000 On or before March 1, 2016 -$30,000 On or before March 1, 2017 -$30,000 This note may be prepaid in whole or in part without penalty. Any such prepayments shall be applied to principal. If the Noteholder has not received the full amount of the annual payment by the end of 15 calendar days after the date it is due, Maker will pay a late charge to the Noteholder. The amount of the charge will be 15% of any overdue payment of principal. Maker will pay this late charge promptly but only once on each late payment. If Maker does not pay the full amount of each annual payment on the date it is due, Maker will be in default, and the entire principal amount hereof, together with all accrued interest and late charges, shall become immediately due and payable at the option of the Noteholder. Failure to exercise this option upon any default shall not constitute or be construed as a waiver of the right to exercise such option subsequently. Presentment, demand, protest, notices of dishonor and of protest, and all defenses and pleas on the ground of any extension or extensions of the time for payrnent or of the due dates of this note, the release of any parties who are or may become liable heron, in whole or in part, before or after maturity, with or without notice, are waived by the Maker and are jointly and severally waived by any endorsers, sureties, guarantors and assumers hereof. It is further agreed by each of the foregoing parties that they will pay all expenses incurred in collection this obligation, including reasonable attorney's fees, if this obligation or any part hereof is not paid when due. WITNESS the following signature(s). Plaza Volunteer Fire Company and Rescue Squad, Inc. (SEAL) Title: Date: Pla,?a Valunteer Rescue Squad Posr o, ffice Bc?x 2I28 rtrgtJ#lt,i BFClCI7, ?rginta 23450 RESCGrE 16 385-2864 Fa-v (7-57) 431-5379 ,5ervitrg tfte £irnentunity Sirrce 1962 January 31, 2014 Div[sion Chief Jason Stroud Virginia Beach Department caf EMS 477 Viking Drive, Suite 130 Virginia Beach, VA 23452 Chief Stroud: Enclosed is a letter addressed to Chief Edwards requesting an interest free loan from the City of Virginia Beach. We are requesting assistance v+rith the purchase of an additional ambulance for the Plaza Volunteer Rescue Squad. Please note that our request daes not include funding for an additionai Physio-Cantroi LifePak 15 (12 lead), ar a Stryker Power-Pro KT stretcher. We wilt utilize the LifePak 15 (3 lead) from Squad 16 and a surplus PrQ-MX stretcher an fhe new addition to the fleet. V`le have secured a Virginia Rescue Squad Assistance Fund grant to con#ribution ta the purchase of the ambufance, Stryker Stair-Pro and the required communicationslcamputer equipmertt. Piease reach out ta us for any additional information regarding the loan request. Respectfully, Z9? Christopher FIorio, NREMfi-B Rescue Captain Plaza Volunteer Rescue Squad, Inc. .,l'laza Volunteer R'escue Squa,d pasr CIffice Box 2128 i-Irginia Beach, Virginia 23450 RESCL:fE 16 383-2864 Fat (75 7) 43I-53 79 .Setving the Crrrarnrrarit}=S,ince 1962 January 31, 2014 Ghief Bruce Edwards Virginia Beach Department of EMS 477 VikEng Drive, Suife 130 Virginia Seach,l/A 23452 Chief Edwards: I am writing on behaIf of the Plaza Volunteer Rescue Squad to request a no-interest loan from the Ci#y of Virginia Beach, The foan wiJl be ussd #ar #he purchase of a new ambulance for our rescue squad. This ambulance will be a new additian ta aur current fleet a# four arnbufances and is vital to the expansion and staffing of our sqtaad. Back round • In 2012 we were dispatched to 6008 calls for sencice and fransported Qver 4000 patients, a Each ambulance was dispatched to an average of 1500 calls for 2012 adding to increased down time fvr prevent'rve maintenance and mechanieal issues. 0 Our aging fleet of ambuCances averaged over 200 days of down-time in 2012, whieh necessitated the rescheduling a# volunteers who were otherwise wiAing and abEe to provide pre-hospital emergency care. * Increased call volume in the city of Virginia Beach has prompted Virginia Beach EMS to provide EMS correrage at non-EMS fire stations add'sng mileage and the accompanying wear and tear on aur flee#. • Plaza Rescue volunteers provide increasec! EMS coverage at three Virginia Beach Fire Department stations which da not have resident ambulance companies. As a result, our volunteers in 2012 staffed an add'rtional 265 seeand orthird run ambulances, creafing complicated shift change logistics when spare ambulances are no# available for our first run area. The addition of a fifth ambulance would decrease the number o# cal[s per unit per year, allow for a"reserve" ambulance to accvmmodate increased staffing or unit maintenance, .PZuza Vol'unteer Rescue Squad Posr Office Bax 2128 Lirgiraia Beaelx, Hirgiriia 23450 RESCC<E 16 385-2864 Fax (75 7) 431-53 79 .4erulrrg the C'an:mutritF Siiree 7962 Chie# Bruce Edwards January 31, 2014 and allow for a better unit rotation to mirtimize wear and tear on each unit. Due to the increase in members' staffing of additional trucks, we are unable to consistently provide dedicated day, night, second-run and reserve units, further exacerbating maintenance requirements and comp[icating shift changes, `fiorcing crews coming on duty to wait for ambulances that were assigned remote locations during the previous shift. At best, this deiays response time; at warst, it forces a quafified voiunteer crew out of service dtae an Ottt-0f-5eNiC@ UCIIt. An additional ambulance woufd allow Plaza to grow to meet aur members' and pa#i+ents` needs by al[owing continuous statfing during times of heavy demand while maintaining a maintenance schedu[e that extends the service fife of afl of our ambulances. With the cfeac need fox an additianal unit, the membership of Plaza has moved to purchase a fifth ambulance. Plaza Rescue anticipates having the new unit in senrice by the end of the 2014 if this prvject is fulty funded. !t is understood that the new uni# wilf have to meet certain standards promulgated by both fihe Virginia Beach Departrnent of Emergency MedicaE Services and the Virginia Office of Emergency hJledical Services. Recognizing the cost of adding an additional unit to the fleet, we have #ound a funding gap and utilized several grant opportunities to help complete this project. On January 1, 2014 our agency was awarded a Rescue Squad Assistance Fund grant from the Virginia Clffice of Emergency Medical Services in the amaurrt 4f $117,878.50 to apply tn the purchase of the new ambulance ancf we haue included a copy of the award notifica#ion with this request. In addition, The Virgirtia Beach Rescue Sqttad Faundatian, lnc. on December 12, 2013, awarded our agency a$10,OO0.QO grant ta be used toward the purchase of s#ate required equipment ta equip the new ambulance. The rernainder of the estimated expense wauld be paid from this requested grant and from the rescue squad danatians dErectly. Reguest We are requesfing a na-interest loan in the amQUnt of ninety-thousarrd dollars ($90,000.00), to assist in funding this project. Plaza would repay this loan in three annual installments of thirty thousand dollars ($30,000.00), The reques#ed amount is based on the following: Page 2 Plazza Volunteer l?escue S'quad Po;sr office Bax 2128 Firginia Beac Jr, U"trgrtaia 23450 RESGU'E 16 385-2864 FcLr (757) 431-53 74 Sen+ing tJre ['rrmntrtttitl= Simm•e 1962 Chief Bruce Edwards January 31, 2014 Estimated price of new ambulance $209,500.00 Estima#ed price of communication/radia equipment $23,572.00 Estimated price of supplies and Stryker stair chair $13,685.00 Balance (estimated casts) $246,757.00 UA OEMS RSAF grant ($117,878.50) Vi?ginia Beach Rescus Squad Foundation grant ($10,040.00) Baiance (less current grants) $118,878.50 City of l/irginia Beach no-interest loan request $905000.0a Pfaza Reseue donatian monies ta be used (approximate) $28,87$.50 Qther Obli ations PEaza VQlunteer Rescue Squad has anly an in#erest-free seventy-five thousand dQllar {$75,000.00} loan for the re-chassis of ambulance number 1623. This loan is current and will be satisfied in fufl in 2015. Thank you far the consideration af our request and sponsoring it for actiQn by the Virginia Beach Gity Gauncil. Should you require any further infarmation, please con#act us with any questions. Respectfuily, Christopher F[orio, NREMT-B Rescue Captain Plaza Valunteer Rescue Squad, Inc. Page 3 -61- Iteni -V-K.l2d ORDINANCES/RESOL UTIONS ITEM #63545 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Ordinance to ACCEPT, APPROPRIATE and TRANSFER: d. $ 74,842 from the Virginia Department of Health, Office of Emergency Medical Services (EMS) re purchase of cardiac monitor upgrades, Lucas CPR devices and automatic external Defibrillators TTOting: 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 AN ORDINANCE TO ACCEPT AND APPROPRIATE GRANT FUNDS AND TO TRANSFER FUNDS FOR THE PURCHASE OF CARDIAC MONITOR UPGRADES, LUCAS CPR DEVICES, AND AUTOMATIC EXTERNAL DEFIBRILLATORS APPROVED AS TO LEGAL SUFFICIENCY: BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA THAT: 1) $74,842 is hereby accepted from the Virginia Department of Health, Office of Emergency Medical Services, and appropriated, with estimated state revenues increased accordingly, to the FY 2013-14 Operating Budget of the Department of Emergency Medical Services for costs of cardiac monitor upgrades, LUCAS CPR devices and related accessories, and automatic external defibrillators; and 2) $74,842 is hereby transferred from the General Fund Reserve for Contingencies to the FY 2013-14 Operating Budget of the Department of Emergency Medical Services to provide the local grant match. Adopted by the Council of the City of Virginia Beach, Virginia on the 25th day of February , 2014. Requires an affirmative vote by a majority of all member of the City Council. APPROVED AS TO CONTENT ...,M.. . ( \ Budget and Management Services City Attorn ' ' e CA12890 R-1 February 5, 2014 -62- Item -V-K.12e ORDINANCES/RESOL UTIONS ITEM #63546 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, Ciry Council ADOPTED, BY CONSENT, Ordinance to ACCEPT, APPROPRIATE and TRANSFER: e. $20, 000 fYOm Smart Beginnings South Hampton Roads to Economic Development re Early Learning Challenge Grant Initiative Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members VotingNay. None Council Members Absent: None February 25, 2014 1 2 3 4 5 6 7 8 9 10 11 12 AN ORDINANCE TO ACCEPT AND APPROPRIATE GRANT FUNDS FROM SMART BEGINNINGS SOUTH HAMPTON ROADS FOR THE EARLY LEARNING CHALLENGE GRANT INITIATIVE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That $20,000 is hereby accepted from Smart Beginnings South Hampton Roads and appropriated, with estimated revenue increased accordingly, to the FY 2013-14 Operating Budget of the Department of Economic Development for the Early Learning Challenge Grant Initiative. Adopted by the Council of the City of Virginia Beach, Virginia, on the 25th day Of February , 2014. Requires an affirmative vote by a majority of all of the members of City Council. APPROVED AS TO CONTENT: W l V?. Budget and Management Servic s CA12891 R-1 February 6, 2014 APPROVED AS TO LEGAL SUFFICIENCY: -63- Item ADD ON ORDINANCES/RESOL UTIONS ITEM #63547 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council ADOPTED, BY CONSENT, Resolution NAMING the Volunteer Recognition Garden at the Municipal Center as the "MAR Y C. R USSO VOL UNTEER RECOGNITION GARDEN" Yoting: I1-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Yoting Nay: None Council Members Absent.• None February 25, 2014 REQUESTED BY CITY COUNCIL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A RESOLUTION NAMING THE VOLUNTEER RECOGNITION GARDEN AT THE MUNICIPAL CENTER AS "THE MARY C. RUSSO VOLUNTEER RECOGNITION GARDEN" WHEREAS, Mary C. Russo has served 46 years as a Volunteer with the City of Virginia Beach, including City Council appointed Chair and Founding Director of The City of Virginia Beach Office of Volunteer Resources; WHEREAS, Mary Russo was appointed by past Governors Holton and Godwin to the Drug Advisory Council as well as the Education and Grant Review Committees; WHEREAS, Mary Russo founded local programs: First Steps Virginia Beach, Virginia Beach Citizen Corps and the Virginia Beach Volunteer Council; WHEREAS, Mary Russo served as the Chair of various state and local initiatives, including the United Drug Abuse Council, Virginia Beach Drug Focus Committee, Community Services Board, the Francis Land House Board of Governors, the Mayor's Committee on Aging, Citizen's Advisory Committee to the President of Virginia Wesleyan College, the Advisory Board of the Virginia Beach Vocational Technical Schooi, Sentara Bayside Hospital Ethics Committee, Project Link Implementing Committee for perinatal substance abuse prevention, United Way Agency, Virginia Beach YWCA, Pendleton Child Service Center, United Way Family Center, Virginia Federation of Women's Clubs, Virginia Correctional Facility Statewide Volunteer Task Force, Tidewater Women's Club, Virginia Beach Safety Council, Virginia Beach City Public Schools Council on Drug Abuse, Virginia Beach Interfaith Committee, Virginia Beach Crime Prevention Steering Committee, and many more; WHEREAS, Mary Russo's contributions to her community have been recognized through numerous awards: First Citizen of Virginia Beach, Knights of Columbus Layman Award, B'NAI B'RITH Salute to Women, Virginia Council of Social Welfare Outstanding Citizenship, Virginia Beach Bar Association First Liberty Bell Award, City of Virginia Beach City Manager's Award, Cox Cable Great Citizens of Tidewater, Sons of Italy Outstanding Community Volunteer, Princess Anne Rotary Club Outstanding Citizen Award, Virginia Beach City Peer Award, Southeastern Virginia Notre Dame Club Outstanding Community Volunteer, Virginia Beach Rotary Club Outstanding Volunteer, American Legion Community Servant of the Year, WAVY 10 Who Care Award, Volunteer Hampton Roads Achievement Award, Japan Education Culture Center International Service Award, Honorary Deputy Sheriff of Virginia Beach, America Butoku Sai Lifetime Service Award in Volunteerism, and the Hampton Roads Chamber of Commerce Virginia Beach Volunteer Leadership Award; 43 WHEREAS, Mary Russo has generously and tirelessly worked to recognize all 44 who give their most precious gift-their time-by volunteering in all aspects of local 45 government; 46 47 WHEREAS, the Volunteer Recognition Garden at the Municipal Center was 48 created in 1998 as a project of the Volunteer Council to honor past and present 49 Volunteers who gave, and continue to give, their time and talents to make Virginia 50 Beach the greatest city in the worid. The Volunteer Recognition Garden was paid for 51 through the generosity of private citizens and businesses, The Garden is tended year- 52 round by municipal employees as a symbol of unity between the City and Volunteers; 53 and, 54 55 WHEREAS, naming The Garden for Mary C. Russo recognizes her contributions 56 to the City over many decades and will highlight her unfaltering dedication to the 57 recognition of Volunteers and ensuring Virginia Beach is a"Community for a Lifetime". 58 59 NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 60 VIRGINIA BEACH, VIRGINIA: 61 62 That the Volunteer Recognition Garden at the Municipal Center is hereby 63 renamed, and shall henceforth be known as, "The Mary C. Russo Volunteer 64 Recognition Garden." 65 25th 66 Adopted by the City Council of the City of Virginia Beach, Virginia, this 67 day of February , 2014. APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA12895 R-4 February 20, 2014 -64- Item -V-L PLANNING 1. GRAHAMREAL ESTATE, LLC/ KCLB, LLC 2. CROWN CASTLE USA, INC. 3. R&JRETAIL INVESTMENTS, INC. 4. ADVENTURE SPORTS PARK, LLC/ KAMPGROUNDS OFAMERICA, INC. 5. MAHESH GOPINATH/KELHAM PROPERTIES, LLC 6. L UCILA A. FIGUEREO 7. WITCHDUCK COURT, LLC ITEM #63548 8. HOME ASSOCIATES OF VIRGINIA, INC. 9. HIF, LLC; HIC, LLC; MACH ONE, LLC 10. HOFD ASHVILLE PARK, LLC/ELBOW FARMS ASSOCIATES 11. CITY OF VIRGINIA BEACH AMEND GREENRUNPDH VARIANCE RELOCATION OF NONCONFORMING USE MODIFICATION OF CONDITIONS MODIFICATION OF CONDITIONAL USE PERMIT CONDITIONAL USE PERMIT CONDITIONAL IISE PERMIT MODIFICATION OF CONDITIONAL CHANGE OF ZONING CONDITIONAL CHANGE OF ZONING MODIFICATION OF CONDITIONAL CHANGE OF ZONING CONDITIONAL CHANGE OF ZONING & MODIFICATION OF PROFFERS February 25, 2014 -65- Item -V-L PLANNING ITEM #63549 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED IN ONE MOTION, BY CONSENT, Items 1u/b, 2(DEFER TO MARCH 11, 2014), 3, 6, 7, 9, I0a1b(DEFER INDEFINATELY) and 11a16/c/d1e/f/g/h of the PLANNINGAGENDA. Voting: I1-0 Coasncil Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 -66- Item -V-L.la/b PLANNING ITEM #63550 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED/ CONDITIONED, BY CONSENT, Application of GRAHAM REAL ESTATE, LL / KCLB, LLC DISTRICT 1- CENTERVILLE a. Amendment to Green Run PDH Plan to allow development of a mini-warehouse (self-storage) b. Variance to the Subdivision Ordinance Section 4.4(b), to create a new parcel at 1545 Lynnhaven Parkway BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of GRAHAMREAL ESTATE, LL /KCLB, LLC (portion of GPIN 1485582232) DISTRICT 1- CENTERVILLE a. Amendment to Green Run PDH Plan to allow development of a mini-warehouse (self-storage) b. Variance to the Subdivision Ordinance Section 4.4(b), to create a new parcel at 1545 Lynnhaven PaYkway The following conditions shall be requiYed: Except as modified by any other conditions of this Land Use Plan Amendment or as necessary to comply with applicable City development Ordinances and Standards when the property is developed, it shall be in substantial conformance with the Site Layout entitled, "Conceptual Layout for Amendment to the Land Use Plan for Parcel CM-2 at 1545 Lynnhaven Parkway, " prepared by MSA, PC, dated 12-2-12, including the increased buffer of twenty (20) feet along the rear of the property and noting that the ingress/egress shall comply with the Public Works Standards and Specifications and the proposed driveway shall either be located entirely on this site or the encroachment depicted on said Plan be formalized by recordation of a plat. Said Plan has been exhibited to the Virginia Beach City Council and is on file in Planning Department. 2. Except as modified by any other conditions of this Use Permit or as necessary to comply with applicable City Ordinances and Building Codes, the self-storage building shall be constructed in substantial conformance with elevations depicted on the exhibits in this report titled, "Lynnhaven Self Storage, " prepared by GMF Architects, dated October 31, 2013. Said elevations have been exhibited to the Virginia Beach City Council and are on file in the Planning Department. 3. Existing plant material along the northern property line shall remain intact. In the event it is removed due to decline, disease or hazard, the buffer shall be replanted as required by the City of Virginia Beach Landscaping Guide within a twenry (20) foot wide buffer area. February 25, 2014 -67- Item -V-L.la/b PLANNING ITEM #63550(Continued) 4. All exterior lighting shall be low intensity and residential in character and shall overlap and be uniform throughout the parking area. Per Section 237 of the City Zoning Ordinance, all outdoor lights shall be shielded to direct light and glare onto the self-storage premises. Said lighting and glare shall be deflected, shaded and focused away from all adjoining property. Any outdoor lighting fixtures shall not be erected any higher than fourteen (14) feet. A Lighting Plan and/or Photometric Diagram Plan shall be submitted during detailed Site Plan review. Said Plan shall include the location of all pole-mounted and building-mounted lighting fixtures and the listing of lamp rype, wattage and type of fixture. All lighting on the site shall be consistent with those standards recommended by the Illumination Engineering Society of North America. The Plan shall include provisions for implementing low-level securiry lighting for non-business hours. 5. No freestanding sign shall be installed without approval by the Board of Zoning Appeals of a variance allowing a freestanding sign. 6. The self-storage units shall be used only for stoYage of goods. The units shall not be used for office purposes, band rehearsals, residential dwellings or any other purpose not consistent with the storage of goods. 7. There shall be no exterior storage of motoYized vehicles or inoperable vehicles on the property. 8. No barbed wire, Yazor wire or any other fencing devices shall be installed on the Yoof or walls of the building or any fence on the property This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the Ciry of Virginia Beach, Virginia, on the Twenry-Fifth day of February, Two Thousand Fourteen February 25, 2014 -68- Item -V-L.1 a/b PLANNING Yoting: 11-0 Council Members Voting Aye. ITEM #63550(Continued) Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Tjoting Nay: None Council Members Absent: None February 25, 2014 -69- Item -V-L.2 PLANNING ITEM #63551 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council DEFERRED TO MARCH 11, 2014, BY CONSENT, Application of CROWN CASTLE USA, INC. for a Relocation of a Nonconforming Structure (communication tower) at Meadow Ridge Lane DISTRICT 7- PRINCESS ANNE Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Coiincil Members Voting Nay: None Council Members Absent: None February 25, 2014 -70- Item -V-L.3 PLANNING ITEM #63552 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED/ CONDITIONED, BY CONSENT, Application of R& J RETAIL INVESTMENTS, INC. for Modi acation of Conditions re a service station and car wash (approved December 13, 1988 and Modified August 26, 1991) at 5765 Northampton Boulevard DISTRICT 4- BAYSIDE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of R& J RETAIL INVESTMENTS, INC. for Modification of Conditions re a service station and car wash (approved December 13, 1988 and Modified August 26, 1991) at 5765 Northampton Boulevard (GPIN 1468093099) DISTRICT 4- BAYSIDE The following conditions shall be required.• 1. All conditions attached to the Modification of a Conditional Use Permit granted by the City Council on August 26, 1991, are deleted and are replaced with the conditions listed below: a. All signage shall meet the current requirements of the City Zoning Ordinance. b. Redevelopment of the site shall substantially conform to the Site Plan titled "LAUNDROMAT NORTHAMPTON" and dated 11/1/2013. c. Architectural changes made on this site shall substantially conform to the elevations titled "LAUNDROMAT NORTHAMPTON", dated 11/1/2013. d. Public restrooms shall be provided as per Section 225(a) of the City Zoning Ordinance. e. Category IV landscaping shall be provided along the Southern property line. Existing mature vegetation on the subject parcel and/or the adjacent parcel identified as GPIN 14680848790000 (1137 Baker Road) may be counted toward this condition. This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-Fifth day of February, Two Thousand Fourteen February 25, 2014 -71- Item -V-L.3 PLANNING Yoting: 11-0 Council Members VotingAye: Robert M. Dyer, Barbara M Shannon DS Kane, Brad M? Hammond, Mayor William D. Wilson and James L. Wood Council Members Yoting Nay.• ITEM #63552(Continued) Henley, Vice Mayor Louis R. Jones, rtin, John D. Moss, Amelia N. Ross- Sessoms, Jr., John E. Uhrin, Rosemary None Council Members Absent.• None February 25, 2014 -72- Item -V-L.4 PLANNING ITEM #63553 The following individual registered to speak: Don Averso, 894 Park Place Drive, Phone: 428-4356, advised he owns property adjacent to this property and expressed concern regarding the noise. Mr. Averso is not necessarily opposed to the project. Upon motion by Councilman Uhrin, seconded by Councilman Wood, Ciry Council APPROVED/ CONDITIONED, Application of ADVENTURE SPORTS PARK, LLC/KAMPGROUNDS OF AMERICA, INC. for Modi ication of a Conditional Use Permit re ADDING outdoor recreation (Paintball Park) (approved December 8,1969) at 1304 and 1252 ProspeYity Road DISTRICT 6- BEACH BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of ADVENTURE SPORTS PARK, LLC/KAMPGROUNDS OF AMERICA, INC. for Modi ication o(a Conditional Use Permit re ADDING outdoor recreation (Paintball Park) (approved December 8,1969) at 1304 and 1252 Prosperity Road (portion of GPINs 2415883309 and 2415882856) DISTRICT 6- BEACH The following conditions shall be required: 1. The hours of operation of the Paintball/Laser Tag areas shall be limited to 9.•00 A.M. to dusk. 2. The Paintball and Laser Tag areas (parking, play and otherwise) shall be located in the area depicted on the submitted Plan entitled, "Subdivision of Property belonging to W.W. McClanan, Jr. ", dated 112111970, which has been displayed to the Virginia Beach City Council and is on file with the Department of Planning. Any expansion beyond those limits depicted on the Plan shall require additional review and approval of a modification of these conditions by the City Council. 3. The applicant shall provide portable bathroom facilities on-site when the recreation area is in use. For large events and events advertised to the public, at least one ADA-compliant portable bathroom unit shall be provided. This Ordinance shall be effective in accordance with Section 107(f) of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-Fifth day of February, Two Thousand Fourteen February 25, 2014 -73- Item -V-L.4 PLANNING Voting: 11-0 Council Members Yoting Aye: ITEM #63553(Continued) Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Yoting Nay: None Council Members Absent: None February 25, 2014 -74- Item -V-L.S PLANNING ITEM #63554 The following individual registered to speak: Cara Castilloux Bunting: 5308 Sir Burton Drive, Phone: 761-6308, expressed concern regarding adequate parking. Upon motion by Council Lady Ross-Hammond, seconded by Councilman Dyer, City Council APPROVED/ CONDITIONED, Application of MAHESH GOPINATH (applicant) and KELHAM PROPERTIES, LLC (owner) for a Conditional Use Permit re Vocational (dental assisting) Training School at 405 South Parliament Drive DISTRICT 2- KEMPSVILLE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of MAHESH GOPINATH (applicant) and KELHAM PROPERTIES, LLC (owner) for a Conditional Use Permit re Yocational (dental assisting) Training School at 405 South Parliament Drive (GPIN 1466499573) DISTRICT 2- KEMPSVILLE The following conditions shall be required: 1. In accordance with the requirements of the City of Virginia Beach Landscaping Guide, streetscape landscaping shall be installed along South Parliament Drive and Sir Barton Drive to screen the parking lots from the public rights-of-way. Said plant materials shall be depicted on a Plan and be submitted to the Department of Planning / Current Planning Staff for review. 2. In accordance with the requirements of the City of Virginia Beach Landscaping Guide, Category I Landscaping shall be installed along the Western property line for the length of the building to screen the subject site from the existing residential dwelling to the West. Said plant materials shall be depicted on a Plan and be submitted to the Department of Planning / Current Planning Staff for review. 3. The exterior of the building for the Dental Office and Tjocational School shall be renovated in substantial conformance with the building elevation rendering entitled, "Proposed Elevation, " which has been exhibited to the Virginia Beach City Council and is on file in the Planning Department. This Ordinance shall be effective in accordance with Section 107(fl of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-Fifth day of February, Two Thousand Fourteen February 25, 2014 -75- Iteni -V-L.S PLANNING Voting 11-0 ITEM #63554(Continued) Council Members Voting Aye: Robert M. Dyer, Barbara M. Shannon DS Kane, Brad Ma Hammond, Mayor William D. Wilson and James L. Wood Council Members Yoting Nay: None Council Members Absent: None Henley, Vice Mayor Louis R. Jones, rtin, John D. Moss, Amelia N. Ross- Sessoms, Jr., John E. Uhrin, Rosemary February 25, 2014 -76- Item -V-L.6 PLANNING ITEM #63555 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED/ CONDITIONED, BY CONSENT, Application of LUCILA A. FIGUEREO for a Conditional Use Pef•mit for a Home Family Child Daycare at 2021 Manassas Run DISTRICT 1- CENTERVILLE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of LUCILA A. FIGUEREO for a Conditional Use Permit for a Home Family Child Daycare at 2021 Manassas Run (GPIN 1454 782902) DISTRICT 1- CENTERVILLE The following conditions shall be required: The child Daycare shall be limited to a total of twelve (12) children, other than children living in the home, and the permitted number of children based on their ages shall be as set forth by the Virginia Department of Social Services. 2. No more than one (1) person, other than the applicant and immediate family, shall assist with the operation of the Family Daycare Home at any time. 3. Hours of operation shall be 7:30 A.M. to 4:30 P.M., Monday through Friday. Additionally, the applicant may occasionally provide overnight care for children. 4. The applicant shall stagger the arrival and departure times for the children such that vehicular congestion is avoided. 5. All play equipment associated with the child Daycare business shall be located behind the front faqade of the house and within the fenced yard area when not open for business. 6 A non-illuminated sign, not more than one (1) square foot in area, identifying the home Daycare may be mounted flat against the house. 7. The applicant shall be licensed with the Commonwealth of Virginia for this use. Failure to maintain said license in good standing shall result in revocation of this Conditional Use Permit. 8. The applicant shall obtain all necessary permits and inspections from the Planning Department/ Permits and Inspections Division. The applicant shall secure a Certificate of Occupancy from the Building Official for use of the house as a Family Daycare Home. This Ordinance shall be effective in accordance with Section 107(o of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-Fifth day of February, Two Thousand Fourteen February 25, 2014 -77- Item -V-L.6 PLANNING Voting: 11-0 ITEM #63555(Continued) Council Members Voting Aye: Robert M. Dyer, Barbara M Shannon DS Kane, Brad M? Hammond, Mayor William D. Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None Henley, Vice Mayor Louis R. Jones, rtin, John D. Moss, Amelia N. Ross- Sessoms, Jr., John E. Uhrin, Rosemary February 25, 2014 -78- Item -V-L.7 PLANNING ITEM #63556 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED/ CONDITIONED, BY CONSENT, Application of WITCHDUCK COURT, LLC Modification of a Conditional Chanee o Zoning re Proffer No. 4(fencing) at 527 North Witchduck Road DISTRICT 4- BAYSIDE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of WITCHDUCK COURT, LLC Modif cation of a Conditional ChanQe of ZoninQ re Proffer No. 4 (fencing) at 527 North Witchduck Road (GPIN 1467980821) DISTRICT 4 - BAYSIDE The following condition shall be required.' An Agreement encompassing the Amended proffers shall be recorded with the Clerk of Circuit Court. This Ordinance shall be effective in accordance with Section 107(fl of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-Fifth day of February, Two Thousand Fourteen Voting: 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Shannon DS Kane, Brad Martin, John Hammond, Mayor William D. Sessoms, Wilson and James L. Wood Council Members Troting Nay: None Council Members Absent.• None Vice Mayor Louis R. Jones, D. Moss, Amelia N. Ross- Jr., John E. Uhrin, Rosemary February 25, 2014 -79- Iteni -V-L.B PLANNING ITEM #63557 The following individuals registered to speak: Eddie Bourdon, Attorney for Applicant, advised the property is just over six (6) acres and located in the Transition Area. The development will be named "Pungo Village ". The homes are anticipated to be sold for around $400, 000. The project has 3-1/z acres of open space and the community will be governed by a Homeowners Association with mandatory membership. The Homeowners Association will be in charge of the inspection of each septic system and provide results to the State Health Department in a timely mafaner. Kornell R. Davis, Phone: 804-966-9190, advised the alternative septic system must meet the new regcilations of the State Health Department, including an initial lab sample received no later than 180 days from occupancy. Mr. Davis advised a structure cannot be placed on top of this type of system; however, you can run and play on the grass that is planted over the system. Diana Hicks, 2129 General Booth Blvd., #103, Phone: 426-7066, spoke in OPPOSITION. Mrs. Hicks serves on the Interfacility Transition Area Advisory Committee, established by City Council in March 2013. The Committee has reviewed this Application and recommended City Council DENY this request. The project is not reflective of the surrounding aYea and will set a precedent if approved with one home per acre lot. There are a lot of unknowns surrounding the septic system, especially based on the variations in the water table due to tidal winds. Mrs. Hicks advised once a project like this is approved the precedent is set and small cluster developments will pop up all over the rural area. This type of development is not the intent of the Transition Area. Mary Pace, 1777 Indian River Road, Phone: 721-9770, spoke in OPPOSITION. Ms. Pack expressed concern regarding the flooding in the area and negative effects this development will have as a result of the flooding. Jennifer Olmstead, 5125 Morris Neck Road, Phone: 403-2617, spoke in OPPOSITION. Ms. Olmstead advised she moved to Pungo for the slower pace of life, just off of the "beaten path ". This development does not conform to the area as the lots are very small. The residents of Back Bay and Pungo are concerned as there is only so much rural space left in the City and which needs a comprehensive look at how to preserve it. Jeun Snead, 1780 Indian River Road, Phone: 721-2030, spoke in OPPOSITION. Ms. Snead lives four- tenths of a mile from the proposed development. She expressed concern regarding the negative impact on her property. The area floods with a heavy rain and the additional homes are only going to make this worse. Richard Brewer, 1797 Indian River Road, Phone: 426-6895, spoke in OPPOSITION. Mr. Brewer owns 17 Acres near the proposed development and has already spoken to each Member of City Council regarding his opposition. Mr. Brewer encouraged City Council to DENY this request. Stephen Mills, 1909 Indian River Road, Phone: 439-6548, spoke in OPPOSITION. Mr. Mills expressed concern regarding the amount of homes for such a small space. He paid a lot of money for his property and this development will negatively impact his property value. Doris King, 1753 Indian River Road, Phone: 426-8224, spoke in OPPOSITION. Ms. King advised this type of "cluster development" is not acceptable to the area. This property does not have Ciry Water or a fire hydrant in the area. She actually watched a house on this very property be destroyed by fire for lack of water. Road impYOVements are needed befoYe any type of development is approved on this property. Ms. King stated she moved for the rural atmosphere and this development will negatively impact the very thing she loves. February 25, 2014 -80- Item -V-L.B PLANNING ITEM #63557(Continued) Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council DEFERRED INDEFINATELY, Application of HOME ASSOCIATES OF VIRGINIA, INC. for a Conditional ChcanQe of Zoningfrom AG-1 Agricultural to Conditional R-1 S Residential at 1864 Indian River Road (Deferred December 10, 2013) DISTRICT 7- PRINCESS ANNE Yoting: I1-0 Council Members VotingAye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 -81- Item -V-L.9 PLANNING ITEM #63558 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, Ciry Council APPROVED, AS PROFFERED, BY CONSENT, Application of HIF, LLC; HIC, LLC; MACH ONE, LLC for a Modification of a Conditional Change of Zoning (approved April 11, 1995 and Modified October 11, 2011) re development of a retail building at 3877 Holland Road DISTRICT 3- ROSE HALL BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon Application of HIF, LLC; HIC, LLC; MACH ONE, LLC for a Modi acation of a Conditional ChanQe of ZoninQ (approved April 11, 1995 and Modified October 11, 2011) re development of a retail building at 3877 Holland Road (GPIN 1486246493) DISTRICT 3 - ROSE HALL The following conditions shall be required.• An Agreement encompassing proffeYS shall be recorded with the Clerk of Circuit Court. This OYdinance shall be effective in accordance with Section 107()of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Twenty-Fifth day of February, Two Thousand Fourteen Voting: I1-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Shannon DS Kane, Brad Ma Hammond, Mayor William D. Wilson and James L. Wood Henley, Vice Mayor Louis R. Jones, rtin, John D. Moss, Amelia N. Ross- Sessoms, Jr., John E. Uhrin, Rosemary Council Members Voting Nay. None Council MembeYS Absent: None February 25, 2014 -82- Item -V-L10a1b PLANNING ITEM #63559 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council DEFERRED INDEFINATELY, BY CONSENT, Applications ofHOFD ASHVILLE PARK, LLC/ELBOW FARMS ASSOCIATES, DISTRICT 7- PRINCESS ANNE: a. Conditional Change o ZoninQ from AG-1 Agricultural and AG-2 Agricultural to PD-H2 (P-1 Preservation) to preserve natural open space at 3049 New Bridge Road b. Modification of Proffers of a Conditional Chan?e of ZoninQ (approved May 10, 2005 and Modified February 14, 2012) to ADD the lot at 3049 New Bridge Road Voting: 11-D Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 -83- Iteni -V-L.ll a1b /c/d/e/f/g PLANNING ITEM #63560 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED, BY CONSENT, Applications of the City of Virginia Beach to: a. ADD Article 22, Sections 2200 through 2212 ESTABLISHING the Central Business Core District b. AMEND the Official Zoning Map re "CBC Central Business Core District " c. ADD, AMEND, REORDAIN, REPEAL or RENUMBER certain Sections to CONFORM to the provisions of Article 22 of the City Zoning Ordinance (CZO) re conformance d. AMEND the Pembroke Strategic Growth Area 4 Implementation Plan and the Policy Document of the Comprehensive Plan e. AMEND and REORDAIN Sections 5.5, 5.6B and 5.14 of the Site Plan Ordinance applicable to property within the District f. ESTABLISH Transition Rules for the review of Site Plans, Subdivision Plats and other Plans for development g. AMEND Section 33-114.3 re encroachments by outdoor cafes, etc., within certain Zoning Districts Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE TO ADD ARTICLE 22 TO THE CITY ZONING 2 ORDINANCE, CONSISTING OF SECTIONS 2200 THROUGH 3 2212, ESTABLISHING THE CENTRAL BUSINESS CORE 4 DISTRICT AND SETTING FORTH FINDINGS AND 5 REGULATIONS PERTAINING TO PERMITTED USES, 6 DEVELOPMENT (LOT AND BUILDING) STANDARDS, SIGN 7 REGULATIONS, ALTERNATIVE COMPLIANCE WITH 8 PRESCRIBED DEVELOPMENT STANDARDS, OPTIONAL 9 FORMS OF DEVELOPMENT, PUBLIC ART, PARKING 10 REQUIREMENTS AND DESIGN GUIDELINES FOR THE 11 DISTRICT 12 13 Sections Added: City Zoning Ordinance Sections 2200 through 2212 14 15 WHEREAS, the public necessity, convenience, general welfare and good zoning 16 practice so require; 17 18 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 19 VIRGINIA BEACH, VIRGINIA: 20 21 That a new Article 22 of the City Zoning Ordinance, consisting of Sections 2200 22 through 2212, establishing the Central Business Core District and setting forth 23 regulations regarding permitted uses, lot standards, building standards, alternative 24 compliance with prescribed development standards, optional forms of development, 25 public art, parking requirements and other development standards for the District is 26 hereby added to the City Zoning Ordinance, to read as follows: 27 28 29 ARTICLE 22. CENTRAL BUSINESS CORE DISTRICT. 30 31 A. General Provisions 32 33 Sec. 2200. Applicability; severability 34 Sec.2201. Purpose 35 Sec.2202. Findinqs 36 37 B. Development Requlations 38 39 Sec. 2203. Use requlations 40 Sec. 2204. Development standards 41 Sec. 2205. Alternative Compliance 42 Sec 2206. Optional Forms of Development 43 Sec 2207 Special rules for public art as an Optional Form of Development 44 Sec 2208. Nonconforminq buildings and structures 45 46 C. Siqn Requlations 47 48 Sec 2209 Intent; findinqs, establishment of special sign district 49 Sec. 2210. Requlations applicable to all signage 50 51 D. Design Guidelines 52 53 Sec 2211 Central Business Core District Desiqn Guidelines 54 55 56 E. Vehicular Parkinq Requlations 57 58 Sec. 2212. Off-street parking 59 60 61 62 A. GENERAL PROVISIONS. 63 64 Sec. 2200. Applicabilitv; severability. 65 (a) This Article sets forth the zoning requlations applicable to development 66 within the Central Business Core District. Such district shall be desiqnated on the 67 official zoning map as "CBC". 68 (b) In the event of a conflict between the provisions of this Article and any 69 other provision of the Citv Zoninq Ordinance the provisions of this Article shall applv 70 unless expresslv otherwise provided. 71 (c) The provisions of this Code shall be severable such that in the event one 72 (1) or more of the provisions of this Code shall be adiudqed to be invalid or 73 unenforceable the validity and enforceability of the remaininq provisions shall not in any 74 way be affected or impaired by such adiudication. 75 COMMENT 76 77 This section states that the Article contains the zoning regulations applicable to 78 development in the new Central Business Core District and that the City's zoning map shall 79 designate the district as "CBC." It also resolves potential conflicts with other CZO provisions in 80 favor of the provisions of this ordinance and contains a severability clause to express the intention 2 81 of the City Council that the invalidation of one or more provisions sha? not aff'ect any other 82 provision. 83 84 Sec.2201. Purpose. 85 86 (a) The purpose of this Article is to establish requlations implementinq the 87 vision of the City Council for the Central Business District/Core Area portion of the 88 Pembroke Strateqic Growth Area as expressed in the Pembroke Strateqic Growth Area 89 Implementation Plan ("SGA Plan") adopted on November 10 2009. Such requlations 90 are intended to foster the continued development of a central urban core with a vertical 91 mix of urban uses mobility and transit alternatives urban qatherinq places, 92 environmental and neiqhborhood protection, "qreen" buildinqs and infrastructure 93 opportunities providinq a varietv of civic commercial artistic and ethnicallv diverse 94 areas. 95 gg COMMENT 97 98 The section states the purpose of the Article. The descriptive language in the second 99 sentence was taken from the Vision Statement contained in the Pembroke SGA Plan. 100 101 Sec.2202. Findinqs. 102 The City Council finds that: 103 104 (a) In the 2003 Comprehensive Plan the City established Strateqic Growth 105 Areas (SGAs) including the Pembroke SGA as areas desiqned to absorb most of the 106 City's anticipated future qrowth both residential and non-residential. The SGAs were 107 planned to contain uses that are more intensive than in most other areas of the Citv but 108 are inteqrated into compact yet compatible mixes of uses includinq office, retail, 109 service hotel and where appropriate, residential, uses. 110 111 The 2003 Comprehensive Plan also set forth five common planninq principles 112 applicable to all SGAs: 113 114 (1) Efficient use of land resources; 115 116 (2) Full use of urban services; 117 118 (3) A compatible mix of uses; 119 120 (4) A range of_transportation opportunities; and 121 3 122 (5) Detailed human-scale desiqn. 123 124 (b) The 2003 Comprehensive Plan also set forth quidance concerning the 125 implementation of the vision embodied in the various SGAs. It stated: 126 127 Of equal importance will be how the SGAs develop in reqard 128 to the form that they take. The SGAs are intended to be 129 urban in form with a mixture of uses commonly found in 130 urban settinqs The areas however, that are desiqnated as 131 SGAs are larqely either undeveloped or developed in the 132 same suburban pattern found throuqhout the City. How we 133 reshape these undeveloped and suburban areas will be 134 critical if we are to create memorable urban places where 135 people desire to live work play and learn. As the various 136 implementation plans are developed for the SGAs, we must 137 develop desiqn quidelines and new zoninq tools, such as 138 Form Based Codes that provide specific direction to those 139 who own property in the SGAs reqardinq what the form of 140 those places will be. If the form of the SGAs does not match 141 our vision for the SGAs we will have lost much. This Plan, 142 therefore provides fundamental quidance reqardinq the 143 proper form of urban places and the principles of desiqn that 144 can be used as we move forward to create an active and 145 vibrant urban corridor from Newtown to the Oceanfront. 146 147 (c) The 2009 Comprehensive Plan retained the strateqv and quidinq 148 principles set forth hereinabove That strateqy has been refined and expanded by 149 means of separate plans that were specific to each of the eiqht SGAs within the City 150 and that were adopted only after an extensive public participation in each instance. The 151 plans for all of those SGAs retain the five basic planninq principles set forth in 152 subsection (a) In addition the 2009 Plan noted that the City has identified SGAs as: 153 154 (1) Providinq opportunities for continued phYsical and economic 155 rg owth; 156 157 (2) Helpinq to prevent urban sprawl; 158 159 (3) Protectinq our established residential neighborhoods and rural 160 areas from incompatible development due to qrowth pressures; 161 162 (4) Maximizinq infrastructure efficiency; and 163 164 (5) Creatinq unique and excitinq urban destinations. 165 166 (d) Traditional suburban-stvle development typically lacks siqnificant 167 connectivity to mass transit systems and bicycle or pedestrian-oriented features, instead 168 dependinq almost exclusively upon automobile traffic. Such dependence upon the 169 automobile results in larqe expanses of asphalt or other impervious parkinq surfaces 170 that are rarely if ever, fully utilized and has siqnificant undesirable impacts, includinq, 171 amonq others: 172 173 (1) Inefficient use of land; 174 175 (2) Greater adverse impacts on air and water quality notwithstandinq 176 compliance with applicable requlations than vertically-oriented, 177 mixed-use development; 178 179 (3) Incompatibility, both functional and architectural, with adiacent 180 communities; 181 182 (4) Increased traffic conqestion; and 183 184 (5) A lack of uniqueness and "sense of place" differentiatinq Virqinia 185 Beach from other cities. 186 187 (e) As stated in the Pembroke SGA Plan: 188 189 Without an urban core the City will not be able to attract the 190 kind of employers needed to provide jobs to certain 191 segments of its ever-expandinq citizenry. The time has come 192 for the Citv of Virginia Beach to embrace its urban potential 193 and take steps to create a sustainable citv form that better 194 serves its citizens now and lonq into the future. 195 196 (fl In liqht of the foreqoin fq indings it is in the best interests of the City of 197 Virginia Beach that this Article be adopted in order to promote development that 198 advances the City's vision for the Central Business District/Core Area portion of the 199 Pembroke Strateqic Growth Area. That vision was finalized only after residents, 200 business owners and other stakeholders participated with City planners and other 201 officials in an extensive public participation process in which a varietv of views and 202 o,pinions were expressed and considered. 203 5 204 (q) The zoninq requlations that currently qovern development in the Central 205 Business District/Core Area of the Pembroke SGA should be updated and refined so as 206 to allow more flexible and creative forms of development; accordinqly the requlations 207 set forth in this Article are intended to be flexible and performance-oriented, so as to 208 allow multiple forms of development that advance the qoals and obiectives of the 209 Pembroke SGA Plan. 210 211 COMMENT 212 The section sets forth the findings underlying the ordinance. Most of these findings have 213 been taken from the 2009 Comprehensive Plan or the Pembroke Strategic Growth Arca Plan. 214 Othcrs, particularly in subsection (g), have been added. 215 216 B. DEVELOPMENT REGULATIONS 217 218 Sec. 2203. Use requlations. 219 220 (a) The followinq chart lists those uses permitted within the Central Business 221 Core District Uses and structures shall be allowed either as principal uses, indicated 222 by a"P" or as conditional uses indicated by a"C " Uses and structures indicated by an 223 "X" shall be prohibited unless allowed bv special exception for Alternative Compliance 224 pursuant to Section 2205 No uses or structures other than as specified herein or as 225 allowed pursuant to subsection (b) shall be permitted. 226 227 Use Disfrict 22$ 229 cac 230 231 Adult book stores, but not within 500 feet 232 of any aqartment or residential district, 233 sinqle - or multiple-family dwellinq, church, 234 park or school X 235 236 Animal hospitals veterinarv establishments, 237 pounds shelters and commercial kennels, 238 provided that all animals shall be kept in 239 soundproofed air-conditioned buildinqs P 240 241 Assemblv uses ? 242 243 Automobile museums subiect to the provisions of 244 Section 223.1 c 245 6 246 Use District 247 248 CBC 249 250 Automobile repair qaraqes subiect to the provisions 251 of Section 224 X 252 253 Automobile service stations: sublect to the provisions 254 of Section 225 and provided that where there is an 255 adioininq Residential or Apartment district without an 256 interveninq street alley or permanent open space qreater 257 than twentv-five (25) feet in width and where lots separated 258 by a district boundarv have adiacent front yards, Cateqorv VI 259 screeninq shall separate the automobile service station use 260 from the adiacent Residential or Apartment district and 261 no freestanding siqn shall be located within fiftv (50) feet 262 of any such Residential or Apartment District C 263 264 Bakeries confectioneries and delicatessens 265 provided that products prepared or processed 266 on the premises shall be sold only at retail and 267 only on the premises except that bakeries, 268 confectioneries and delicatessens with 7,500 269 square feet or less in floor area mav prepare 270 products on the premises for retail sale at an 271 off-site location P 272 273 Bars or niqhtclubs subiect to the provisions of Section 274 225.01 c 275 276 Beveraqe manufacturinq shops ? 277 278 Bicvcle and moped rental establishments and bicvcle 279 sharinQ svstems subiect to the provisions of Section 226 c 280 281 Boat sales X 282 283 Bodv piercinq establishments X 284 285 Buildinq-mounted antennas meetinq the repuirements 286 of Section 207 P 287 288 Bulk storaqe vards and buildinq contractors vards, 289 subiect to the provisions of Section 228, and provided 290 that no sale or processinc,?of scrap salvaqe or second- 291 hand material shall be permitted? and provided further 292 that such storaqe vards shall be comqletelv enclosed 293 except for necessary openings in inaress and eqress bv 294 a fence or wall not less than six (6) feet in heiqht X 7 295 Use District 296 297 CBC 298 299 300 Business and vocational schools c 301 302 Business studios and offices ? 303 304 Car wash facilities subiect to the provisions of Section 305 228.1 c 306 307 Child care and child care education centers P 308 309 Colleqes and universities public or private c 310 311 Commercial and other surface parkinq lots, includinq 312 on-site surface parkinq parkinq qaraqes and storaqe 313 qaraqes except as provided below c 314 315 Commercial and other surface parkinq lots includinq 316 on-site parkinq located behind a buildinq or otherwise 317 screened from view from a public street P 318 319 Commercial parkinq structures which mav include 320 car wash car rental or car detailinq services when 321 wholly enclosed within a parkinq structure and 322 accessorv thereto P 323 324 Communication towers meeting the requirements of 325 Section 2320) P 326 327 Communication towers exceqt as specified above c 328 329 Craft distillerV shops C 330 331 Dwellings attached/townhouses X 332 333 Dwellinqs multiple-familv P 334 335 Fiber-oqtics transmission facilities subiect to the 336 provisions of Section 233.15 c 337 338 Financial institutions provided that drive-threuqh 339 facilities shall be located on the block interior or 340 in the qround floor of a parkinqstructure so as 341 not to be visible from a public riqht-of-wav P 342 343 Funeral homes C 8 344 Use District 345 346 CBC 347 348 Furniture repair and upholsterinq: repair services for 349 radio and television and household appliances other 350 than those with qasoline enqines: carpet and linoleum 351 lavinq tile settinq siqn shops and other small service 352 businesses within a mixed-use buildinq P 353 354 Furniture repair and upholsterin% repair services for 355 radio and television and household appliances other 356 than those with qasoline enqines: carpet and linoleum 357 lavinq: tile settinq siqn shops and other small service 358 businesses other than within a mixed-use buildinq X 359 360 Greenhouses and plant nurseries in a mixed-use 361 buildin C 362 363 Grocery stores carry-out food stores and 364 convenience stores ? 365 366 Heliports and helistops C 367 368 Home occupations c 369 370 Housinq for seniors and disabled persons subiect 371 to the provisions of Section 235: convalescent, 372 nursinq or maternitv homes c 373 374 Hospitals and sanitariums C 375 376 Hotels P 377 378 Laundrv and dry cleaninq establishments, retail ? 379 380 Liquor stores other than at wholesale ? 381 382 Medical and dental offices and clinics P 383 384 Medicallaboratories P 385 386 Mini-warehouses X 387 388 Mobile home sales X 389 390 Motor vehicle sales and rentals, subiect to 391 the provisions of Section 239, except as 392 provided below X 9 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 Use District Cac Motor vehicle sales and rentals provided that such use and any accessorv or other uses in conjunction with the principal use are fullv enclosed within a buildinq P Museums and art qalleries P Off-site parkinq facilities, subiect to the provisions of Section 2212 P Pharmacies provided that drive-throuqh facilities shall be located on the block interior or in the qround floor of a parkinq structure so as not to be visible from the public riqht-of-wav P Printinq publishinq and similar uses P Personal service establishments P Personal watercraft rentals X Public schools c Public uses except public schools P Public utilities installations and substations provided that storaqe and maintenance facilities shall not be permitted: and provided further, that utilities substations other than individual transformers shall be surrounded bv Cateqory IV screeninq except for entrances and exits: and provided also that transformer vaults for underqround utilities shall require onlv Cateqory I screeninq except for access openinqs P Public utilities offices P Public utilitv storaqe or maintenance installations X Radio and television broadcastina stations c Recreational or amusement facilities indoor, with a maximum floor area of 7,500 square feet P 10 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 Use District CBC Recreational or amusement facilities, indoor, with a maximum floor area qreater than 7,500 square feet c Recreation or amusement facilities, outdoor, other than ridinq academies and recreational campqrounds, sublect to the provisions of Section 240.1 c Reliqious uses with a floor area qreater than 4,000 square feet c Reliqious uses with a maximum floor area of 4,000 sauare feet P Restaurants inside a mixed-use buildinq except as erovided below P Restaurants whether freestandinq or in a mixed-use buildinq with a drive-throuqh window, provided that drive-throuqh facilities shall be located on the block interior or on the qround floor of a parkinq structure so as not to be visible from a public riqht-of-wav P Restaurants freestanding, without drive-throuqh windows P Retail establishments other than those listed separatelv, includinq the incidental manufacturinQ of qoods for sale at retail on the premises? provided that outdoor storaqe or display of anv items for sale shall comply with the provisions of Section 2204(c) P Storaqe or processinq of salvaqe, scrap or iunk X Satellite waqerinq facilities within a mixed-use buildinq C Single room occupancy facility X Specialtv shops P Tattoo parlors and body-piercinq establishments X Truck and trailer rentals in accordance with the provisions of Section 242.2 X 11 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 Use District cBc Wholesalinq and distribution operations provided that such operations do not involve the use of: (i) more than 2,000 square feet of floor area for storaqe of wares? (ii) any vehicle rated at more than 1'/z tons, or (iii) a total of more than five (5) delivery vehicles X Wildlife rehabilitation centers X Wind enerqv conversion systems freestandinq c Wind enerqv conversion svstems roof-mounted, except as provided below P Wind enerqv conversion svstems roof-mounted, in excess of one (1) per princiqal structure c (b) If a proposed use is not expressly permitted pursuant to subsection (a), but is similar to a listed use the Zoninq Administrator may cateqorize the proposed use as a use permitted by this section either as a principal or conditional use. In determininq whether a proposed use is similar to a listed use the Zoninq Administrator shall consider (1) the actual or proiected characteristics of the proposed use in comparison to those of the most similar listed use? and (2) the cateqorization of the proposed use in the Standard Land Use Codinq Manual (First Edition January 1965). (c) Uses other than those allowed pursuant to subsections (a) or (b) may be allowed pursuant to the Alternative Compliance provisions set forth in Section 2205 if such use conforms to the standards set forth therein. COMMENT The section sets i'orth the use regulations f'or the District. "The section also provides that uses not otherwise allowed may be permitted under the Alternative Compliance provisions in Section 2205. In addition, the Zoning Administrator may allow a use that is not expressly listed as an allowed use, but is similar to a listed use, depending on the actual or projected characteristics of the proposed use and its classification in the Standard Land Use Coding Manual (SLUCM). 12 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 Sec. 2204. Development standards. Uses and structures in the District shali conform to the development standards listed below, unless approved pursuant to the Alternative Compliance (Section 2205) or Optional Forms of Development (Section 2206) provisions of this Article: (a) Lot Standards (values expressed in feet unless otherwise indicated): Standard District --- - CBc Lot area (min.) 5,000 square feet Lot width (min.) 50 Front setback (min. 0 Side street setback (min.) 0 Side setback (min.) 0 or 5 Rear setback (min.) 0 or 5 Build-to zone 0 - 10 Alle setback (min. 5 Surface parking setback (min. 20' (on 70% of street frontage) Parking struct 3re setback min. 20' (on 50% of street frontage) Outdoor amenity s ace° min. 5% of lot area Notes: 1 Lot width shall be measured at the front property line For buildin4 sites on which one or more standalone buildinqs is located on a leased portion of a recorded lot or zonin4 lot the lot width shall be determined as if the lease lines were lot lines. 2 The build to zone is the portion of a lot in which at least the first two (2) stories of a buildina facade facinq a street must occupv no less than the percentaqe as desiqnated in subsection (b), of the distance between the lot lines abuttinq the public street faced bv the buildinq facade. The build-to requirements shall applv to all building facades facinq a qublic street. 3 The parkinq setback must be met in the desiqnated percentaqe of the street frontaqe of anV portion of the lot or leased area as the case mav be adiacent to a public street and applies to surface parkinq and parkinq structures (qround story only) Where the required setback of a parkinq structure is met in less than 70% of the street frontaqe the structure must substantiallv conform to the applicable Central Business Core District Desiqn Guidelines. Surface parkinq on corner lots including vehicular entrances and exits shall be set back at least fifteen (15) feet from each point of intersection unless a greater setback is required bv the conditional use ep rmit. 4 Outdoor amenitv space is an exterior area of an establishment that: (1) serves as an amenity for occupants of the establishment or members of the public and (2) consists of areas such as 13 564 565 566 567 568 569 570 571 572 573 574 qardens (includinq roof qardens) landscapinq beds or other yeg_eiated and maintained areas courtvards, fountains plazas parks cafes or similar areas Stormwater manaqement facilities mav be included within outdoor amenitv spaces but outdoor displav areas and areas consistinq solely of qrass and lackinq other components such as trees landscapinq or hardscape improvements shall not be included as outdoor amenity space Outdoor amenitv space shall be maintained in qood condition at all times. (b) Buildinq Form Standards (values expressed in feet unless otherwise indicated : c4?nrlnrrl District CBC Hei ht min. 25 or 2 stories, whichever is lower Hei ht max. None, suNect to Section 202 Ground floor height (min.) 12 Build-to zone 70% 4 Transparency (min.) 30% ground floor; 15% upper floors Blank wall (max.)5 30 Permitted uses in mixed-use buildings (ground floor) A, B, C, D, E, F, G, H Permitted uses in mixed-use buildin s u er floors) A, B, C, D, E, F, G, H 575 576 Ke v to permitted uses: 577 578 A: Retail and service 579 580 B: Office 581 582 C: Hotel lobbv/conference space/accessorv uses 583 584 D: Restaurants 585 586 E: Recreational assembly or institutional 587 588 F: Residential 589 590 G: Hotel 591 592 H: Commercial parkinq structures 593 594 595 Notes: 596 597 1 Permitted encroachments above the maximum heiqht shall be as set forth in Section 202. 598 599 2. Measured from finished floor to finished floor. 600 601 3 Minimum percentage of street frontaqe of the lot or leased area occupied bv buildinq 602 fnade. 603 604 4. Minimum percentaqe of windows and doors that must cover a qround story facade facing 605 a street as measured between two (2) and eiqht (8) feet above the adiacent sidewalk. The minimum 14 606 percentaae of windows and doors that must cover an upper floor facade facinq a street is measured from 607 the finished floor to the finished floor above When there is no floor above upper storv transparencV is 608 measured from the top of the finished floor to the top of the wall plate A minimum of thirtv per cent (30%) 609 of a reauired entrance must be transparent on a mixed-use or commercial buildinq. 610 611 5 "Blank wall" means a portion of the exterior street-facinq faCade of the buildinq that does 612 not include a substantial material chanqe (paint color is not considered a substantial chanqe)? windows, 613 doors columns pilasters or other articulation qreater than twelve (12) inches in depth. The above 614 requirement applies in both a vertical and horizontal direction and to both qround and upper story street- 615 facinq facades. 616 617 6 A mixed use buildinq is a buildinq containinq two (2) or more separate uses one of which 618 consists of residential dwellinq units that are qhysicaliv and functionally inteqrated within the same 619 buildinq on one zoninq lot. 620 621 7 Residential dwellinq units mav not occupv more than fifty per cent (50%) of the total floor 622 area of the qround floor of the buildinq in which it is located. 623 624 (c) Outdoor display and storaqe. 625 626 (1) Outdoor displav is the outdoor displav of inerchandise available for 627 sale at an establishment. 628 629 (2) Outdoor display of inerchandise is permitted in association with any 630 permitted commercial use in accordance with the followinq 631 provisions: 632 633 A Outdoor displays shall be limited to an area within eiqht (8) 634 feet of a buildinq farade that contains the principal customer 635 entrance for the buildinq and shall not be within anv area 636 consistinq of outdoor amenity space Outdoor displavs shall 637 occupy no more than thirtv per cent (30%) of the horizontal 638 length of such farade and the maximum heiqht of anv such 639 displav shall not exceed six (6) feet; 640 641 B Outdoor displavs shall be removed and placed inside a fully- 642 enclosed buildinq at the end of each business day; and 643 644 C Outdoor displavs mav not impair the abilitv of pedestrians to 645 use the sidewalk. 646 647 (3) Outdoor display of liquefied petroleum (LP) qas storaqe racks, ice 648 storaqe bins or similar items soft drink or other vendinq machines, 649 or items on pallets shall not be permitted. 15 650 651 (4) Outdoor storaqe is the overniqht storaqe outside of a buildinq, of 652 products or materials includinq without limitation merchandise or 653 material in boxes in crates on pallets or in shippinq containers; 654 vehicles awaitinq repair? recreational vehicles and boats; shoppinq 655 carts? qarden or buildinq supplies: shipping containers? lumber, pipe, 656 steel iunk and other similar items. 657 658 (5) Outdoor storaqe shall be allowed only as provided in Section 208 or 659 as a condition of a conditional use permit authorizinq the use at 660 which outdoor storaqe occurs. 661 662 (d) Permitted encroachments. 663 664 (1) The followinq encroachments into the area between a buildinq 665 farade and public riqht-of-way shall be permitted: 666 667 A Galleries awninqs porte cocheres stoops porches and 668 balconies; 669 670 B. Outdoor seatinq; 671 672 C Outdoor display areas in accordance with subsection (c); 673 674 D Siqns as allowed by Section 2210; 675 676 E Trash receptacles water features bicycle racks and 677 bollards; 678 679 F. Pedestrian lightinq; 680 681 G Minor structures accessory to utility facilities such as 682 hydrants manholes transformers utility boxes, meters and 683 fire suppression equipment; 684 685 H Handicapped ramps to the extent necessarv to perform their 686 proper function; 687 ggg I Buildinq eaves roof overhanqs and liqht shelves, provided 689 there is at least eiqht (8) feet in clearance above the 690 sidewalk; 16 691 692 J Cornices belt courses sills, buttresses or other similar 693 architectural features provided there is at least eiqht (8) feet 694 in clearance above the sidewalk; 695 696 K Bav windows oriels vestibules that are less than ten (10) 697 feet wide may extend up to four feet provided that such ggg extension is at least two (2) feet from the vertical plane of the ggg lot line; 700 701 L Chimneys or flues which may extend uq to two (2) feet, 702 provided that such extension is at least two feet from the 703 vertical plane of the lot line; 704 705 M Outdoor amenity space components plant material, 706 landscapinq sidewalks trees tree wells and planters; 707 708 N Sculptures and other public art in accordance with the 709 provisions of Section 2207 710 711 O. Permitted access drives; 712 713 P Walls or fences not more than four (4) feet in heiqht; 714 provided however, that walls or fences providinq required 715 screeninq or used to screen mechanical or similar equipment 716 shall not exceed eiqht (8) feet in heiqht; 717 718 Q. Subqrade foundations; 719 720 R Loadinq docks and necessary mechanical equipment; and 721 722 S Conditional uses allowed bv Section 2203 if specified in the 723 conditional use permit. 724 725 (2) Encroachments into or over public sidewalks or other 726 public riqhts-of-wav shall be permitted in accordance 727 with Article VI of Chapter 33 of the City Code, except 728 as otherwise provided in this Article. 729 730 17 731 COMMENT 732 733 The section contains the applicable development standards regarding lots and buildings in 734 the llistrict The standards are intended to result in the type of urban-style, pedestrian-oriented 735 development contemplated by the Pembroke Strategic Growth Area Plan. 736 737 738 Sec 2205. Alternative Compliance. 739 740 (a) This section sets forth the procedures and standards for Alternative 741 Compliance under which the City Council mav qrant special exceptions to allow the 742 develo ment of new uses or structures that do not conform to the uses or forms of 743 development includinq siqns otherwise permitted under this Article. 744 745 (b) Applications for special exceptions seekinq Alternative Compliance shall 746 be filed with the Plannin Director. There shall be a fee in the amount set forth in 747 Section 107.1. The Planninq Director shall review applications in liqht of the applicable 748 standards set forth in this section and may solicit the comments of the Central Business 749 District Association Desiqn Review Committee thereof in connection with such review. 750 Upon completion of such review, the Planninq Director shall report his findinas and 751 recommendations concerninq the application in writinq to the Planninq Commission. 752 Applications shall be the subiect of public hearinqs before the Planninq Commission 753 and the City Council in accordance with the procedures prescribed in Section 221. 754 755 (c) Alternative Compliance Applications shall be evaluated for consistencv 756 with the followinq standards and the City Council in decidinq whether to allow 757 Alternative Compliance shall consider the extent to which the proposed development: 758 759 (1) Advances the stated qoals and obiectives of the Pembroke 760 Strateqic Growth Area Plan and the applicable policies of the 761 Comprehensive Plan; 762 763 (2) Is consistent with or demonstrably superior in desiqn and qualitv 764 to the applicable provisions of the Central Business Core District 765 Desiqn Guidelines. 766 767 The Citv Council shall also consider the potential impacts of the proposed deviation on 768 surroundinq properties and other properties in the remainder of the Central Business 769 Core District and the extent to which anv adverse impacts from such deviation can be 770 mitiqated. 771 18 772 (d) The City Council may attach reasonable conditions of approval to an 773 application seekinq Alternative Compliance Such conditions shall be limited to those 774 intended to mitiqate any adverse visual functional or other impacts of the deviation from 775 the provisions of this Article or to promote compliance with the qoals and obiectives of 776 the Pembroke SGA Plan and this Article. 777 77$ (e) Nothinq in this section shall be construed to impair the riqht of any proper 779 party to apply to the Board of Zoninq Appeals for a variance from anv of the 780 development standards set forth in this Article. 781 782 COMMENT 783 7$4 The section establishes a procedure ("Alternative Compliance") by which a proposed 785 development may deviate in one or more respects from the provisions of this Article. The section 786 also sets forth the applicable standards to be applied in determining whether an application for 787 Alternative Compliance is to be allowed. 788 789 Subsection (e) makes it clear that the Alternative Compliance procedure is not a 790 replacement for the variance process, as it expressly preserves the right of a proper party to apply 791 to the Board of Zoning Appeals for a variance. 792 793 794 Sec 2206. Optional forms of development. 795 796 (a) Optional Forms of Development are desiqn alternatives that mav be used 797 in place of the specific requirements prescribed bv this Article if the applicable 798 conditions set forth in this section are met Generallv such conditions include: (1) 799 usaqe of a form of development or amenity that is different from the specific 800 development standard prescribed by this Article where the different form or amenity 801 serves the same or a closely-related purpose or purposes as the prescribed 802 development standard: and (2) substantial conformity to applicable provisions of the 803 Central Business Core District Desiqn Guidelines. 804 805 (b) The requirements of this Article mav be satisfied by compliance with either 806 the prescribed development standard set forth in Section 2204 or the provisions of this 807 section as applicable The provisions of this section are intended to encouraqe 808 creativity by providinq a flexible development option that will achieve the qoals and 809 objectives of this Article equally well as compliance with the specific development 810 standards set forth in Section 2204. 811 812 (c) Optional Forms of Development and Alternative Compliance shall not be 813 deemed to be mutuallv exclusive and approval as an Optional Form of Development 814 shall not preclude any application for a special exception under the Alternative 19 815 Compliance provisions of this Code? provided however that if any cnndition of approval 816 pursuant to a special exception for Alternative Compliance conflicts with an approved 817 Optional Form of Development the condition contained in the special exception shall 818 control. 819 820 (d) The followinq provisions set forth the purposes of the development 821 standards prescribed in Section 2204 and the optional means of fulfillinq those 822 purposes throuqh the use of alternative desiqn and building features: 823 824 (1) Front and side street setbacks. 825 826 Purpose: To provide additional space for improvements that 827 contribute to the public realm such as wider sidewalks, outdoor 828 amenity areas and plant material and landscaping. 829 830 Optional form of development: Provide features that contribute to 831 the public realm such as public artcourtyards surrounded bv 832 buildinqs built to the property line balconies arcades, qalleries, 833 porte cocheres or other suitable building elements. The buildinq 834 facade and any other portion. of the building encroachinq into the 835 setback shall substantially conform to the applicable Central 836 Business Core District Desiqn Guidelines. 837 838 (2) Build-to Zone 839 840 Purpose: To activate the street frontaqe and establish a street wall 841 bv locatinq building facades close to the street thereby providinq a 842 walkable pedestrian-oriented streetscape. 843 844 Optional form of development: 845 846 (i) Provide outdoor amenitv space located adiacent to the street 847 and encompassing substantially the entire area between the 848 street and the building facade alonq at least seventy per cent 849 (70%) of the street frontaqe of the lot or leased area. 850 851 (ii) Outdoor amenit y space mav consist of an outdoor cafe, 852 swimminq pool courtyard fountain park plaza, qarden or 853 similar area or a combination thereof. No vehicular parkinq 854 shall be allowed anvwhere within outdoor amenity space or 855 between the outdoor amenity space and the buildinq facade. 20 856 857 (iii) The buildinq farade shall substantially conform to the 858 applicable Central Business Core District Desiqn Guidelines. 859 860 (iv) The buildinq facade shall be located no qreater than thirty 861 (30) feet from the lot line faced by such buildinq faQade 862 unless allowed pursuant to a special exception for 863 Alternative Compliance. 864 865 (v) Where a drivewav prevents the use of outdoor amenitv 866 space in a location specified bv this section, such outdoor 867 amenity space may be placed elsewhere on the lot in such ggg location as will sufficiently activate the street frontaqe to the ggg extent contemplated by this section. 870 871 (3) Parkinq Setbacks 872 873 Purpose: To avoid "dead" space alonq the street frontaqe that 874 does not contribute to an active street presence. 875 876 Optional form of development: Enliven the street frontaqe and 877 screen the parkinq area by the creative use of public art, plant 878 material and landscapinq water features or other pedestrian 879 amenities that provide visual interest. For structured parkinq, ggp maintain continuity of the sidewalk by minimizinq the number and 881 width of curb cuts for drivewavs Where allevs do not exist, 882 concentrate curb cuts at side streets or mid-block. The optional 883 form of development shall substantially conform to applicable 884 Central Business Core District Desiqn Guidelines. 885 886 (4) Heiqht 887 Purpose: To provide an orqanized form throuqhout the Central ggg Business Core District provide qradual transitions in buildinq heiqht ggg in areas in which such transitions are contemplated bv the ggp Pembroke SGA Plan. 891 892 Optional form of development: An increase in heiqht not exceedinq 893 that permitted by Section 202(b) or reduction in the minimum heiqht 894 to no less then twenty-two (22) feet is permitted for any buildinq 21 895 that substantially conforms to Chapter 3(Buildinqs) of the Central ggg Business Core District Desiqn Guidelines. 897 ggg (5) Transparency/Blank Wall 899 900 Purpose: To contribute to an interestinq and safe pedestrian 901 environment. 902 903 Optional form of development: provide outdoor amenity space, 904 such as a courtyard outdoor cafe or water feature adiacent to the 905 street or, for upper stories balconies and qalleries. Enhance 906 materials and architectural detail on buildinq facades in substantial 907 conformitv with applicable Central Business Core District Desiqn gpg Guidelines Outdoor amenity space shall be in reasonable gpg proportion to the deqree of difference between the prescribed 910 transparency requirements and the actual transparency provided. 911 912 COMMENT 913 The section sets forth the development standards that may be altered by utilizing one or 914 more Optional Forms of llevelopment (OFD), and states the requirements for each OFD. 915 916 917 Sec 2207 Special rules for public art as an Optional Form of Development. 918 919 (a) Definition Public art as used in this Article means works of art in any 920 media whether located on public or private property, that are visible to members of the 921 general public or that have been planned and executed with the specific intention of 922 being sited or staqed on or within publiclv-owned propertv. 923 924 (b) Purpose Public art is an investment in the cultural vitalitv and economic 925 development of a communit?r Sculptures murals and other forms of public art can 926 become place makers landmarks and foster culturally dvnamic economically vibrant 927 communities by creatinq memorable urban places where people desire to live work, 928 play and learn For those reasons the provision of public art in lieu of conformitv with 929 one or more of the required forms of development prescribed in this Article accords with 930 the City Council's vision of the Town Center area as a future Arts and Cultural District, 931 the recommendations of the Pembroke SGA Plan and advances the ultimate qoals of 932 the Comprehensive Plan. 933 22 934 (c) Applicabilitv Public art mav be utilized as an Optional Form of 935 Development in place of conformity with one or more of the followinq provisions 936 reqardinq a prescribed development standard set forth in Section 2204_ 937 938 (1) Build-to zone; 939 940 (2) Front or side street setbacks; 941 942 (3) Transparency; 943 944 (4) Blank wall; or 945 946 (5) Outdoor amenity space. 947 948 (d) Location Subiect to the provisions of subsection (f) public art shall be 949 located: 950 951 (1) Outdoors so as to be readily visible and accessible to pedestrians, 952 and no further than fifty (50) feet from the nearest point on a public 953 sidewalk except under exceptional circumstances as approved by 954 the Public Art Committee; 955 956 (2) Away from siqnaqe transit stop structures or benches, utility boxes, 957 utility poles mailboxes bicycle racks or other items either on or off 958 the propertv that mav impair the public's view or diminish the 959 aesthetic value of the artwork; 960 961 (3) In such manner as not to interfere with or impede the flow of 962 pedestrian traffic on a public sidewalk; and 963 964 (4) On the same zoninq lot as the development for which the artwork 965 serves as an Optional Form of Development and to the extent 966 possible consistent with the foreqoinq criteria in such location as to 967 maximize the deqree to which the work of art offsets ggg noncompliance with the prescribed development standard. 969 970 (e) Public art provided as an Optional Form of Development shall serve as a 971 direct replacement for each prescribed development standard or standards from which 972 the sublect development deviates and if located on the same zoninq lot as the subiect 973 development shall serve the same purpose or purposes as the prescribed development 974 standard. 23 975 976 (fl Public art located on publicly-owned property Public art may be Idcated 977 on publicly owned property within the Pembroke Strateqic Growth Area includinq, 978 without limitation public streets and sidewalks Town Center qateways street corners, 979 the Fountain Plaza the Sandler Center Plaza public parkinq qaraqes and future transit 980 stations with the approval of the City Council provided that: 981 982 (1) There is no feasible location on the subiect propertv from which the 983 work of art can be plainly and wholly seen by the public; 984 985 (2) The present or any planned land use of the subiect propertv is such ggg that placement of a work of artin any media on the propertv would 987 be destructive to the work of art due to the activities related to the ggg land use; 989 ggp (3) The property is already fully developed in such a wav that there is 991 no location on the site for a work of artand the work of art is 992 approved as an Optional Form for renovation of the buildinq 993 necessitatinq use of a blank wall or reduction in transparencv; or 994 995 (4) The location of the work of art cannot physicallv meet the criteria 996 specified in subsection (d)(1 997 998 (g) Approval by Public Art Commiftee Public art and any alteration or 999 removal thereof, must be approved bv the Public Art Committee of the Virqinia Beach 1000 Arts and Humanities Commission. 1001 1002 (h) Ownership maintenance contractual provisions. Except in cases in 1003 which public art is dedicated to the City, the ownership of public art works shall be 1004 bound in perpetuity bV written covenant approved by the City Attorney, to the property 1005 for which they serve as an Optional Form of Development and unless otherwise 1006 approved by the Citv shall be maintained by the owner of the property for which it 1007 serves as an Optional Form of Development Where a work of art is to be dedicated to 1008 the City, there shall be a written aqreement between the Citv the owner of the work of 1009 art and if applicable the artist which aqreement shall include at a minimum, terms 1010 reqardinq the ownership maintenance insurance and intellectual property riqhts 1011 pertaining to the work of art Such aqreement shall be subiect to the approval of the 1012 City Council. 1013 1014 ,(i) Sipnage No letterinq svmbols or siqnage shall be permitted upon 1015 public art works except as intended bv the artist as an inteqral part of the work. 24 1016 Paintinqs or murals may be siqned by the artist and the name of the work displaved. 1017 For sculptures the artist shall desiqnate the plaque location which shall be permanently 1018 installed usinq theft-resistant techniques, in a qround location near the sculpture or on 1019 the base and list only the sculpture's title the artist's name the date of installation and 1020 the name of the donor, if applicable. 1021 1022 (i) Plantinq/landscapinq Sculptures and their bases shall be well inteqrated 1023 with the surroundinq softscape and hardscape Lonq-term maintenance should be 1024 considered when selectinq plant material Native and drouqht-resistant plants are 1025 encouraqed. 1026 1027 (k) Unacceptable art Decorative or ornamental pieces that are not 1028 conceptualized desiqned and fabricated by a qualified artist such as "off-the-shelf' 1029 decorative items such as qarden sculpture- historical markers or bells; bell towers; 1030 obelisks; architectural ornamentation or enhancements; art as advertisements or 1031 commercial siqnaqe mixed with imaqery; and busts or statuary memorials, or mass 1032 produced reproductions or replicas of oriqinal works of art shall not be accepted as an 1033 Optional Form of Development. 1034 1035 (I) Artists' pualifications Artists creatinq public art or supervisinq students 1036 creatinq public art shall be selected by the property owner or developer, subiect to 1037 approval by the Public Art Committee, and shall have the followinq qualifications: 1038 1039 (1) Artists shall be recoqnized bv critics and peers as a professional 1040 practitioner of the visual arts To assess the qualifications of an 1041 artist the Committee will consider factors such as the artist's bodv 1042 of work educational backqround formal traininq past and current 1043 larqe scale outdoor public art commissions sales of work, 1044 exhibition records publications and any other factors the 1045 Committee reasonably deems relevant; 1046 1047 (2) Artists shall also have experience in successfully collaboratinq with 1048 design teams architects art consultants developers, enqineers, 1049 fabricators and landscape architects; meetinq scheduled 1050 deadlines? neqotiatinq and contractinq their work responsibly; and 1051 conceptualizinq desiqninq fabricating and installinq larqe-scale 1052 outdoor sculpture similar in scope to the proposed sculpture; and 1053 1054 (3) Artists shall have the experience and expertise to create site 1055 specific public art after consideration of contextual issues related to 25 1056 the development site includinq architectural stvle the future use 1057 and users of the development prolect and community input. 1058 1059 (m) Applications Applications and supportinq materials shall be submitted to 1060 the Director of the Office of Cultural Affairs who shall provide the Arts and Humanities 1061 Commission members with copies thereof. The form of such application and 1062 requirements for supportinq materials shall be determined by the Director. 1063 1064 (n) Conflictinq provisions The procedures set forth in this section shall 1065 exclusively qovern the selection placement and other provisions pertaininq to public art 1066 as an Optional Form of Development such that in the event of a conflict with anv other 1067 ordinance directive or other provision concerninq public art as an Optional Form of 1068 Development the provisions of this section shall control. 1069 1070 COMMENT 1071 The section allows public art to be used as an Optional Form of Development (OFD) as an 1072 alternative to conformity with certain of the Development Standards listed in Section 2204. Yublic 1073 art not used as an OFll is not covered by the provisions of the section; only where public art is used 1074 as an OFll in place of conformity with a required development standard, such as setback, build-to, 1075 transparency, blank wall or outdoor amenity space requirements, is the section applicable. 1076 1077 The section includes, among other things: 1078 1079 • Restrictions on the location of artworks; 1080 1081 • Provisions for review and approval by the Public Art Committee of the Arts and 1082 Humanities Commission, and if located on publicly-owned property, by the City 1083 Council; 1084 1085 • Artist qualification criteria; 1086 1087 • Planting/landscaping and maintenance requirements; 1088 1089 • Commercialization prohibitions; and 1090 1091 • Originality and related requirements. 1092 1093 1094 Sec 2208 Nonconforminq buildinqs and structures, 1095 1096 (a) Notwithstandinq the provisions of Section 105(d) additions to or 1097 substantial alterations of anv buildinq or other structure rendered nonconforminq bv the 1098 adoption of this Article shall be allowed if: 1099 26 1100 (1) Not more than fifty percent (50%) of the oriqinal buildinq or 1101 structure is demolished in order to accomplish the addition or 1102 substantial alteration; 1103 1104 (2) The exterior footprint of the buildinq or structure includina the floor 1105 plate of upper stories is not increased by more than fifteen percent 1106 15% ' 1107 1108 (3) The heiqht of such buildinq or structure is not increased bv more 1109 than fifteen percent (15%) in any district in which there is a 1110 maximum heiqht limitation? provided that no structure shall be 1111 hiqher than otherwise allowed by Section 202; 1112 1113 (4) The use or uses of the buildinq or structure conform to the 1114 provisions of this Article or are allowed by special exception for 1115 Alternative Compliance pursuant to Section 2205; 1116 1117 (5) The buildinq or structure as added to or substantiallv altered, will 1118 be compatible with surroundinq properties and neiqhborhoods; and 1119 1120 (6) The portions of the buildinq or structure that are added or 1121 substantially altered substantiallv conform to the Central Business 1122 Core District Desiqn Guidelines as determined by the Planninq 1123 Director after review and recommendation bv the Central Business 1124 District Desiqn Review Committee. 1125 1126 (b) Except as provided in subsection (c) additions to or substantial alterations 1127 of nonconforminq buildinqs and other structures not allowed pursuant to subsection a 1128 shall require a special exception for Alternative Compliance in accordance with the 1129 provisions of Section 2207. 1130 1131 (c) Any nonconforminq buildinq or structure that is involuntarily damaqed or 1132 destroyed may be reconstructed or restored to its prior condition and location within two 1133 (2) vears of its beinq damaqed or destroved: provided that anv enlaraement or 1134 substantial alteration of such buildinq shall be subject to the provisions of this section. 1135 1136 COMMENT 1137 1138 The section contains rules governing additions or substantial alterations to nonconforming 1139 buildings and other structures. The rules provide an exception to the provisions of City Zoning 1140 Ordinance Section 105, which requires approval of all voluntary enlargements, substantial 1141 alterations or reconstructions, by allowing a limited number of such actions as a matter of right, so 27 1142 long as certain criteria are met. As required by state law, nonconf'orming buildings and structures 1143 that are involuntarily damaged or destroyed may be rebuilt to their prior condition without City 1144 Council approval. 1145 1146 1147 C. SIGN REGULATIONS 1148 1149 Sec 2209 Intent; findinqs, establishment of special sign district. 1150 1151 (a) Intent The intent of the sign requlations set forth in this section is to:_ 1152 1153 (1) Encourage siqnaqe that enhances the overall aesthetics of the 1154 Central Business Core District; 1155 1156 (2) Ensure that the public benefits derived from past and future 1157 expenditures of public funds for the infrastructure improvements 1158 and beautification of the streets and public spaces are protected by 1159 preventinq visual clutter caused by excessive or poorly placed 1160 si na e; 1161 1162 (3) Encouraqe siqnaqe that is reflective of the aesthetics and character 1163 of its location and compatible with and inteqrated into, the 1164 buildinq's architectural desiqn and with other siqns on the property; 1165 1166 (4) Provide incentives for hiqh-quality siqnaqe by increasinq siqnaqe 1167 allowances for siqns that conform to the Central Business Core 1168 District Design Guidelines; and 1169 1170 (5) Encourage creativity by providing flexibility to utilize siqnaqe not 1171 only as a means of identifvinq a business establishment but as a 1172 decorative feature to enhance the appearance of a buildinq as well. 1173 1174 (b) Findinqs. The City Council finds that: 1175 1176 (1) Siqns have a stronq visual impact on the character and qualitv of a 1177 communitv They are an inteqral part of the cityscape and, as such, 1178 can enhance or detract from the City's imaqe and character. As a 1179 prominent part of the cityscape they can attract or repel the viewer 1180 and affect the safety of vehicular traffic and their suitabilitv helps to 1181 define the wav in which a community is perceived. Because the 1182 City of Virqinia Beach relies on the attractiveness of the Town 1183 Center area to attract tourists and commerce aesthetic 28 1184 considerations are directly related to economic value. Apart from 1185 economic considerations however, there are intanqible benefits for 1186 a community in which siqnaqe is orderly and attractive; 1187 1188 (2) The City's current siqn requlations address characteristics such as 1189 the size and number of siqns but qenerallv do not address other 1190 characteristics such as desiqn that are equally important in 1191 promotinq an attractive urban downtown area. 1192 1193 (3) Desiqn standards for siqnaqe are used in many other localities that 1194 are known for their attractiveness and appeal to residents and 1195 visitors alike and have been well-accepted by both businesses and 1196 the qeneral public as a means of enhancinq the overall appearance 1197 and prosperity of the community? and 1198 1199 (4) Providinq incentives for businesses to display siqnaqe that 1200 conforms to voluntary desiqn quidelines is an appropriate means of 1201 encouraqinq those businesses to use well-desiqned, hiqhly 1202 attractive siqns that harmonize with the buildinqs on which they are 1203 displaved the surroundinq neiqhborhood and other siqnaqe in the 1204 area. 1205 1206 (c) Establishment of special siqn district The Central Business Core District 1207 is herebv declared a special siqn district in which the provisions of this section apply. 1208 1209 COMMENT 1210 1211 The section sets forth the intent and findings underlying the sign regulations in this Article 1212 and declares the Central Business Core District a special sign district. 1213 1214 Sec 2210 Requlations applicable to all siqnaqe. 1215 1216 The followinq requlations shall apply to all siqnaqe within the Central Business 1217 Core District All sic1naqe shall complv with the provisions of Article 2 Part B of the City 1218 Zoninq Ordinance except as otherwise expressly provided in this section. Definitions of 1219 siqn types shall be as set forth in Section 210.2. In the event of a conflict between the 1220 provisions of this section and any other provision of the City Zoninq Ordinance, the 1221 provisions of this section shall apply. 1222 1223 (a) Permitted siqn types The following siqn types shall be permitted within 1224 the Central Business Core District: 29 1225 1226 (1) Awninq sipns shall be limited to one (1) siqn per awninq and shall 1227 not exceed a maximum of two (2) square feet in area. Awninq 1228 signs conforminq to the Central Business District Desiqn Guidelines 1229 shall not be included in determininq the allowable siqnaqe of anv 1230 establishment pursuant to subsection (b). 1231 1232 (2) Banner siqns other than those allowed in connection with maior 1233 entertainment venues shall be affixed only to a vertical facade of 1234 the buildinq and not on or extendinq above the roof. No banner 1235 siqn shall exceed eiqht (8) square feet in area or be hiqher than 1236 fifteen (15) feet above street level directly below such siqn. The 1237 lonqer dimension of the siqn shall be no less than two times the 1238 shorter dimension One (1) such siqn shall be allowed for every 1239 twenty five (25) linear feet of frontaqe of the buildinq to which they 1240 are affixed. 1241 1242 (3) Buildinq identification sipns shall be mounted at least three-fourths 1243 (3/4) of the distance from qround level to the top of the buildinq, but 1244 no hiqher than the roofline Commercial buildinqs shall have a 1245 maximum of two (2) buildinq identification siqns which shall not 1246 exceed the area set forth below. Additionally, two (2) buildinq 1247 identification siqns not exceedinq twenty (20) square feet each, 1248 may be allowed at street level. 1249 1250 Blda Heiqht (in feet) Maximum area per siqn (in square feet) 1251 1252 Less than 75 75 1253 75-99 100 1254 100-149 125 1255 150-199 175 1256 200-249 225 1257 250-299 275 1258 300 or more 300 1259 1260 1261 (4) Chanqeable copV siqns shall onlv be allowed for purposes of 1262 disqlavinq information reqardinq movie theater, music, or other 1263 similar performances or events where the chanqeable copy portion 1264 of such siqns is not qreater than 40% of the total area of the siqn or 1265 20% of the total siqn area allowance of an establishments 30 1266 whichever is less. Skewed ar missing letterincl shall be promptly 1267 replaced. 1268 1269 (5) Electronic display sipns rope liqhtinq low-voltaqe strip liqhtinq or 1270 strinqs of liqhts shall be allowed only for maior entertainment 1271 venues and shall require the approval of the City Council. 1272 1273 (6) Freestandinq siqns shall be monument-style only and shall be 1274 allowed only by special exception for Alternative Compliance and 1275 only if the City Council determines that such siqns conform to the 1276 applicable Central Business Core District Desiqn Guidelines. 1277 1278 (7) Hanpinq siqns shall have a maximum of two (2) faces which shall 1279 be parallel to each other, and shall not exceed six (6) square feet 1280 per face in siqn area In addition no business establishment shall 1281 have more than one (1) hanqinq siqn and no business 1282 establishment havinq a hanqinq siqn shall also have a prolectinq 1283 siqn No hanqinq siqn shall be internally illuminated or horizontally 1284 proiect over any public sidewalk bv more than three (3) feet. 1285 Hanqinq siqns shall maintain a minimum clearance of eiqht (8) feet 1286 above qround level Any hanqinq sign that proiects over a public 1287 sidewalk shall conform to all applicable Central Business Core 1288 District Desiqn Guidelines. 1289 1290 (8) Information board siqns shall be placed within a weather-resistant 1291 closed display cabinet no qreater than eight (8) square feet in area, 1292 permanently mounted to the buildinq wall. The maximum heiqht of 1293 the letterinq on such siqns shall not exceed one (1) inch, except for 1294 letterinq comprisinq the name of the establishment. Information 1295 board signs conforminq to the Central Business Core District 1296 Desiqn Guidelines shall not be included in determininq the 1297 allowable signaqe of any establishment pursuant to subsection (b). 1298 1299 (9) Maior entertainment venue sipns shall be permitted in accordance 1300 with the provisions of Section 218. 1301 1302 (10) Marpuee sipns shall be allowed only on buildinqs occupied bv 1303 theaters cinemas performinq arts facilities or similar venues, and 1304 shall have a maximum area of one (1) square foot for each five (5) 1305 linear feet of buildinq facade to which it is attached. The top of 1306 the siqn shall be at a heiqht no qreater than eiqhteen (18) feet 31 1307 above the qround immediately adlacent to the sian and there shall 1308 be a minimum clearance of nins (9) feet above qround level. In 1309 addition such siqns mav contain one (1) chanqeable copv siqn 1310 displayinq information reqardinq movie theater, music, or other 1311 similar performances or events not to be included in the 1312 establishment's total siqn allowance so lonq as such siqn does not 1313 contain any other commercial content Marquee siqns may 1314 encroach above a public sidewalk bv a maximum horizontal 1315 distance of ten (10) feet if such marquee conforms to the Central 1316 Business Core District Desiqn Guidelines. 1317 1318 (11) Public or private parkinq structures and parkinp parapes may have 1319 one (1) siqn per vehicle entrance and two (2) additional siqns, all of 1320 which may be proiect from the buildinq to which they are affixed by 1321 a maximum of four (4) feet Such siqns shall maintain a minimum 1322 clearance of nine (9) feet above qround level. Such siqns shall be 1323 no larqer than seventv-five (75) square feet in area contain only 1324 information identifyinq the buildinq on which they are located as a 1325 parkinq structure or qaraqe and be internally illuminated. 1326 1327 (12) Proiectinp siqns shall have a maximum of two (2) faces, which shall 1328 be parallel to each other, and shall not exceed six (6) square feet 1329 per face in siqn area No proiectinq siqn shall be internally 1330 illuminated or, except for parkinq qarage siqns proiect more than 1331 three (3) feet from the wall to which it is affixed. Such sians shall 1332 maintain a minimum clearance of nine (9) feet above qround level. 1333 No business establishment shall have more than one (1) proiectinq 1334 sign and no business establishment havinq a proiectinq sian shall 1335 also have a hanqinq siqn Any prolectinq siqn that prolects over a 1336 public sidewalk shall conform to all applicable Central Business 1337 Core District Desiqn Guidelines. 1338 1339 (13) Sandwich board sipns shall be made primarilv of wood, wood 1340 composite or metal and have a professional finish. Incorporated 1341 inserts must contain a fixed messaqe or be made out of 1342 chalkboard drv eraser board or similar material. Such siqns shall 1343 be placed no farther than three (3) feet from the farade of the 1344 buildinq in which the business that is the subiect of the siqn is 1345 located and a travel width of at least eiqht (8) feet shall be 1346 maintained on public sidewalks Such siqns shall not be artificially 1347 illuminated or left out overniqht Onlv one sandwich board siqn not 32 1348 to exceed six square feet per side shall be permitted per business. 1349 No merchandise or other material shall be placed on or hanq from 1350 any such siqn Such siqns may be carried by a person on a public 1351 sidewalk so lonq as such siqn does not obstruct or impede 1352 pedestrian passaqe Sandwich board siqns conforminq to the 1353 Central Business District Desiqn Guidelines shall not be included in 1354 determininq the allowable siqnaqe of any establishment pursuant to 1355 subsection (b). 1356 1357 (14) Siqns advertisinp property for sale lease or rent shall be permitted; 1358 provided however that no such siqn shall exceed four (4 square 1359 feet in surface area Not more than two (2) such siqns shall be 1360 permitted for any property havinq more than one hundred (100) 1361 feet of lot line at the street riqht-of-way, and any property havinq 1362 less than one hundred (100) feet of such lot line shall have no more 1363 than one siqn not exceedinq sixteen (16) feet of surface area. 1364 1365 (15) Table umbrella siqns shall be limited to no more than two (2) siqns 1366 on each umbrella and no more than two (2) square feet per siqn. 1367 Table umbrella siqns conforminq to the Central Business Core District Desiqn Guidelines shall not be included in determininq the 1368 1369 allowable siqnaqe of any establishment pursuant to subsection b. 1370 1371 (16) Wall sipns shall not extend above the buildinq wall to which they 1372 are affixed and no wall siqn shall extend more than twelve (12) 1373 inches from the wall to which they are affixed. 1374 1375 (17) Window sipns shall not consist of or contain oscillatinq liqhts, rope 1376 liqhtinq low voltaqe strip liqhtinq electronic display siqns, 1377 televisions computer monitors or backlit or internallv illuminated 1378 displavs or qraphics? provided however, that holiday liqhts framinq 1379 or placed inside windows shall be allowed for a period of thirty (30) 1380 days prior to and ten (10) davs after a holidav for which the displav 1381 of such liqhts is traditional One (1) non-oscillatinq neon or similar 1382 ty e of siqn no larqer than four (4) square feet in area shall be 1383 permitted in one (1) window of each fagade visible from a public 1384 street or sidewalk. 1385 1386 (b) Sipnape allowances The requlations set forth in this subsection prescribe 1387 the number of siq ns total siqn area allowance and other characteristics of siqnage 1388 within the District Unless otherwise provided the allowances apply to each separate 33 1389 business establishment. In the event of a conflict between any of the followinq 1390 provisions and the provisions of subsection (a) the provisions of this section control 1391 unless stated otherwise. 1392 1393 (1) Mixed-use buildinqs Commercial business establishments located 1394 within mixed-use buildinqs and havinq direct inqress or earess from 1395 a public street mav have a maximum of one (1) square foot of 1396 siqnaqe per linear foot of each buildinq wall facinq a public street 1397 and occupied by such establishment and a maximum of four (4) 1398 siqns No such siqn shall exceed sixty (60) square feet in area and 1399 no sinqle use shall have more than two (2) siqns on any buildinq 1400 faQade. 1401 1402 In addition one (1) siqn identifvinq the entrance to upper-floor 1403 residential dwellinq units and not exceedinq eiqht (8) square feet 1404 shall be permitted at street level at each principal entrance. 1405 1406 (2) Other buildinps In addition to buildinq identification sians allowed 1407 by Section (a)(3) commercial business establishments located 1408 within buildinqs other than mixed-use buildinqs and havinq direct 1409 inqress or eqress from a public street or sidewalk mav have a 1410 maximum of one (1) square foot of siqnaqe per linear foot of each 1411 buildinq wall occupied by such establishment and facinq a public 1412 street Such establishment may have a maximum of one (1) siqn 1413 for each buildinq farade facinq a public street. 1414 1415 Additionallv where a commercial building is located on a zoninq lot 1416 with a parkinq structure that is used to satisfy, in whole or in part, 1417 the vehicular parkinq requirements of the commercial buildinq, such 1418 commercial buildinq may have one (1) wall siqn with a maximum 1419 area equal to one (1) square foot of siqnaqe per linear foot of the 1420 buildinq wall on which the siqn is located for each buildinq fagade 1421 facinq a public street and one (1) wall siqn located on the parkinq 1422 structure servinq the commercial buildinq with a maximum area no 1423 qreater than one (1) square foot of signaqe per linear foot of the 1424 buildinq wall of the parkinq structure on which the siqn is located. 1425 1426 Multiple-family dwellinqs mav have a total of one (1) square foot of 1427 siqnaqe per linear foot and a maximum of two (2) siqns for each 1428 buildinq facade facinq a public street. 1429 34 1430 (c) Central Business Core District Desiqn Guidelines; Bonus Siqnaqe. 1431 1432 1 Siqnaqe conforminq to the Central Business Core District Desiqn 1433 Guidelines ("Desiqn Guidelines") shall be subiect to the followinq 1434 provisions: 1435 1436 2 Where all siqnaqe displayed by an establishment conforms to the 1437 Desiqn Guidelines the maximum siqn area of each individual siqn 1438 and the total siqn area allowance of the establishment, if any, is 1439 increased by twentv-five per cent (25%) of the area otherwise 1440 allowed bv this section Any establishment that is entitled to three 1441 or more siqns may also have one additional "bonus" siqn of an 1442 allowed siqn type other than a projectinq siqn which siqn shall 1443 conform to the Desiqn Guidelines and all applicable provisions of 1444 this section• provided however, that the total siqn area of all 1445 siqnaqe shall not be further increased by reason of the "bonus" 1446 Siqn. 1447 1448 3 All siqns that are allowed to encroach into or over a public street or 1449 sidewalk shall conform to the Desiqn Guidelines, unless otherwise 1450 authorized by resolution of the City Council pursuant to Citv Code 1451 Section 33.1-114. 1452 1453 4 The Planninq Director shall determine whether or not siqnaqe 1454 conforms to the Desiqn Guidelines and mav in makinq such 1455 determination seek the advice of the Central Business District 1456 Association Desiqn Review Committee or a desiqnated 1457 subcommittee thereof. 1458 1459 COMMENT 1460 1461 The section sets forth the sign regulations applicable to the Central Business Core District. 1462 They are based upon the sign regulations currently in effect in the B-3A Pembroke Central 1463 Business Core District, but also incorporate newer features contained in the sign regulations of the 1464 Oceanfront Resort llistrict Form-Based Code (ORDFBC), such as allowing signage generally found 1465 in urban locations, such as projecting signs, sandwich board signs, banners and marquee signs. As 1466 in the ORDFBC, bonus signage is allowed if all of an establishment's signage conforms to the 1467 applicable Design Guidelines, whict? are set forth in Section 2211 below. 1468 1469 35 1470 D. DESIGN GUIDELINES. 1471 1472 Sec 2211 Central Business Core District Desiqn Guidelines. 1473 1474 The Central Business Core District Desiqn Guidelines (January 2014) appended 1475 hereto are hereby incorporated bv reference into this Article. Such Guidelines shall 1476 supersede Section V(Architectural Guidelines) and Sections VII throuqh X(Siqnaqe 1477 Guidelines/Desiqn Review Process) of the Central Business District Urban Guidelines 1478 (February 4 2004) and the Special Area Desiqn Guidelines, Urban Areas, set forth in 1479 the Reference Handbook of the Comprehensive Plan. 1480 1481 COMMENT 1482 1483 The Central Business Core District Design Guidelines set forth generally voluntary design 1484 guidelines. "They are appended to this ordinance. These Guidelines supersede the current guidelines 1485 referenced in the section. 1486 1487 E. VEHICULAR PARKING REGULATIONS. 1488 1489 Sec 2213 Off-street parkinq. 1490 1491 (a) For purposes of this section the term "parkinq requirements" shall mean 1492 the number of off street vehicular parking spaces required by this section. 1493 1494 (b) Parkinq requirements shall be determined in accordance with a parkinq 1495 analvsis prepared bv a licensed professional enqineer or other qualified professional. 1496 Such analysis shall contain at a minimum the current parkinq utilization parking 1497 demands based upon current land uses a determination of a surplus or shortaqe of 1498 parkinq and the impact of the proposed development on parking and traffic conditions. 1499 The Planninq Director shall determine the adequacy of the analysis. 1500 1501 (c) Notwithstandinq anythinq in this ordinance to the contrary, required off- 1502 street parking for anv use located within the District mav be made available for use bV 1503 the qeneral public as well as bv the customers or patrons of such use. 1504 1505 (d) Parkinq requirements for uses within the District mav be satisfied by any 1506 one or a combination of the followinq: 1507 1508 (1) On-site parkinq; 1509 36 1510 1511 1512 1513 1514 1515 1516 1517 1518 1519 1520 1521 1522 1523 1524 1525 1526 (2) Off-site parkinq facilities as set forth in Section 901 of this ordinance; or (3) Public parkinq if the Planning Director determines (i) that there is at least a sufficient number of public parkinq spaces located within the District to meet public parkinq demands- and (ii) that the use of such public parkinq spaces to satisfy the parkinq requirements of the proposed use either wholly or partially is warranted in liaht of the followinq considerations: A The extent to which the proposed use advances the qoals and obiectives of this Article; and B The extent to which the proposed use conforms to the Urban Desiqn Plan component of the Pembroke Strateqic Growth Area Plan. 1527 COMMENT 1528 1529 The parking regulations set forth in this section are substantially the same as those in the 1530 current B-3A Pembroke Central Business Core District, with the exception of a provision 1531 concerning projected revenues from the use. 1532 25th 1533 Adopted by the City Council of the City of Virginia Beach on the day 1534 of February , 2014. 1535 1536 1537 Approved as to Content: 1538 1539 1540 1541 Planning Department 1542 1543 1544 CA-12463 1545 R-29 1546 November 5, 2013 Approved as to Legal Sufficiency: . ? . City Attorney's Office 37 1 AN ORDINANCE TO AMEND THE OFFICIAL ZONING MAP 2 BY CHANGING THE ZONING DISTRICT CLASSIFICATION 3 OF CERTAIN PROPERTY TO "CBC CENTRAL BUSINESS 4 CORE DISTRICT." 5 WHEREAS, the public necessity, convenience, general welfare and good zoning 6 practice so require; 7 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 8 VIRGINIA BEACH, VIRGINIA: 9 That the official zoning map of the City of Virginia Beach be, and hereby is, 10 amended by changing the zoning district classification of all lots or parcels of land within 11 the territory described on the attached Exhibit 1, entitled "Listing of Properties to be 12 Included in `CBC Central Business Core District' by Geographic Parcel Identification 13 Number," and within the shaded area on the attached Map, marked Exhibit 2 and 14 entitled "Map of Area to be Rezoned to CBC Central Business Core District," to the 15 zoning district classification "CBC Central Business Core District,"' as shown on the 16 sheets marked and identified as "Zoning - Grids E06 and E07, Zoning, Updated: 17 January 21, 2014" on the official zoning map of the City of Virginia Beach, Virginia, 18 which sheets have been displayed before the City Council this date and are on file in 19 the Department of Planning. 20 Adopted by the Council of the City of Virginia Beach, Virginia, on the 25th day 21 of February , 2014 APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY K t I L Plannin Departmen City Attorney's Office CA-12706 R-2 November 12, 2013 EXHIBIT 1 Listing of Properties to be Included in `CBC Central Business Core District' by Geographic Parcel Identification Number LIST OF ALL AFFECTED GPINS 22 14772593470000,14772594290000,14773441220000,14773447530000, 23 14773471130000,14773497470000,14773500860000,14773504680000, 24 14773523370000,14773524370000,14773533380000,14773534270000, 25 14773537530000,14773553890000,14773563360000,14773564370000, 26 14773574060000,14773590470000,14773595690000,14774400690000, 27 14774401460000,14774402310000,14774403880000,14774411420000, 28 14774421730000, 14774425390000, 14774457290000, 14774471260000 (Town 29 Center Condominiums), 14774475100000 (Residences at Westin Condominiums), 30 14774477180000, 14774488920000 (Studio 56 Condominiums), 14774511630000, 31 14774524250000,14774526240000,14774550300000,14774551310000, 32 14774570940000, 14774673210000 (partial), 14775402230000, 14775402730000, 33 14775408700000,14775412730000,14775414290000,14775418700000, 34 14775445380000 (The Town Center Condominiums), 14775450980000, 35 14775471170000,14775479320000,14775485370000,14775488980000, 36 14775491570000, 14775510280000, 14775540310000 (The Town Center 37 Condominiums), 14775570690000, 14775591410000, 14775594250000, 38 14775620340000 (partial), 14776442620000, 14776444430000, 14776446300000, 39 14776449010000,14776510670000,14776551950000,14776554690000, 40 14776564460000, 14776630960000 (partial) 2 Exhibit 2 nnft., .,f nre-2 +., hn Rn-ynnnrl tn C_RC_ (:pntral Rusinpss Core Distr'iCt 3 ???' Central Business CQre Zoning Distriet M?p not to sca,e 1 AN ORDINANCE TO ADD, AMEND AND REORDAIN, REPEAL 2 OR REN UMBER THE FOLLOWING SECTIONS OF THE CITY 3 ZONING ORDINANCE SO AS TO CONFORM TO THE 4 PROVISI ONS OF ARTICLE 22 (ESTABLISHING THE CBC 5 CENTRA L BUSINESS CORE DISTRICT AND SETTING FORTH 6 THE REGULATIONS PERTAINING TO SUCH DISTRICT), AS 7 FOLLOWS: 8 9 SECTIONS AMENDED AND REORDAINED: 10 11 102 (ZONING DISTRICTS) 12 105 (NONCONFORMITY) 13 107.1 (ALTERNATIVE COMPLIANCE) 14 111 (DEFINITIONS) 15 201 (YARDS) 16 203 (OFF-STREET PARKING REQUIREMENTS) 17 208 (PORTABLE STORAGE CONTAINERS) 18 210 (SIGN REGULATIONS - GENERAL) 19 210.2 (SIGNS - DEFINITIONS) 20 212 (PROHIBITED SIGNS) 21 239.05 (PARKING STRUCTURES AND PARKING GARAGES) 22 244 (RETAIL DESIGN GUIDELINES - APPLICABILITY, 23 RULES OF CONSTRUCTION, MODIFICATIONS) 24 900 (BUSINESS DISTRICTS - LEGISLATIVE INTENT) 25 901 (BUSINESS DISTRICTS - USE REGULATIONS) 26 902 (BUSINESS DISTRICTS - DIMENSIONAL 27 REQUIREMENTS) 2$ 903 (BUSINESS DISTRICTS - LANDSCAPE SCREENING 29 AND BUFFERING REGULATIONS) 30 904 (BUSINESS DISTRICTS - HEIGHT REGULATIONS) 31 905 (BUSINESS DISTRICTS - SIGN REGULATIONS) 32 1001 (INDUSTRIAL DISTRICTS - USE REGULATIONS) 33 1803 (SPECIAL REGULATIONS IN AIR INSTALLATIONS 34 COMPATIBLE USE ZONES -APPLICABILITY) 35 36 SECTIO NS ADDED: 37 38 218 (MAJOR ENTERTAINMENT VENUE SIGNS) 39 228.1 (CAR WASH FACILITES) 40 41 SECTIO NS RENUMBERED: 42 43 230 (RELIGIOUS USES) (RENUMBERED TO SECTION 44 240.1) 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 233.1 (BARS OR NIGHTCLUBS) (RENUMBERED TO SECTION 225.01) SECTIONS REPEALED: 233.01 (MULTIPLE-FAMILY DWELLINGS IN THE B-3A PEMBROKE CENTRAL BUSINESS CORE DISTRICT) WHEREAS, the public necessity, convenience, generai welfare and good zoning practice so require; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: That Sections 102, 105, 107.1, 111, 201, 203, 208, 210, 210.2, 212, 239.05, 244, 900, 901, 902, 903, 904, 905, 1001 and 1803 of the City Zoning Ordinance are hereby amended and reordained; Sections 218 and 228.1 of the City Zoning Ordinance are hereby added; Sections 230 and 233.1 of the City Zoning Ordinance are hereby renumbered, and Section 233.01 of the City Zoning Ordinance is hereby repealed, to read as follows: ARTICLE 1. GENERAL PROVISIONS. Sec. 102. Establishment of districts and official zoning maps. (a) In order to carry out the purposes and provisions of this ordinance, the following districts are hereby established the numbered cateqories of which apA are hereby listed in order from most restrictive to least restrictive: (7) Business Districts. Business Districts shall consist of: B-1 Neighborhood Business District B-1A Limited Community Business District B-2 Community Business District B-3 Central Business District 2 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 B-4 Mixed Use District B-4C Central Business Mixed Use District B-4K Historic Kempsville Area Mixed Use District (13) f?irmrv"csc°Q Districts Implementinq Strateqic Growth Area Plans. The #sr^`?,^-a districts intended to implement Strateqic Growth Area Plans shall consist of: ? OR Oceanfront Resort District; and (2) CBC Central Business Core District COMMENT The amendments reflect that: (1) the new Central Business Core District, as well as future zoning districts Yhat are intended to implement Strategic Growth Area Plans, will not necessarily be form-based; and (2) that the new CBC Central I3usiness Core llistrict replaces the current 13-3A Pembroke Central Business District in its entirety. In addition, Yhe amendments Yo subsection (a) make it clear that, while the general categories of zoning district are listed in order from most restrictive to least restrictive, the specific districts within each category are not necessarily listed as such. Sec. 105. Nonconformity. (d) (1) Enlargement or extension of nonconformity. No nonconforming use shall be increased in magnitude. No nonconforming use shall be enlarged or extended to cover a greater land area than was occupied by the nonconformity on the effective date of this ordinance or amendment thereto. No nonconforming use shall be moved in whole or in part to any other portion of the lot, parcel, or structure not occupied by the nonconformity on the effective date of this ordinance or amendment thereto, and no nonconforming 3 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 structure shall be moved at all except to come into compliance with the terms of this ordinance. No nonconforming structure shall be enlarged, extended, reconstructed, or structurally altered, if the effect is to increase the nonconformity. As an exception to the above, any condition of development prohibited by this section may be permitted by resolution of the city council based upon its finding that the proposed condition is equally appropriate or more appropriate to the district than is the existing nonconformity city council may attach such conditions and safeguards to its approval as it deems necessary to fulfill the purposes of this ordinance. Applications for the enlargement, extension or relocation of a nonconforming use or structure shall be filed with the planning director. The application shall be accompanied by a fee of five hundred dollars ($500.00) to cover the cnst of processing the application. Notice shall be given as provided by Section 15.2-2204 of the Code of Virginia; provided, however, that written notice as prescribed therein shall be given at least fifteen (15) days prior to the hearing. The cost of the public notices required by Section 15.2- 2204 of the Code of Virginia shall be charged to the applicant. A sign shall be posted on the site in accordance with the requirements of section 108 of this ordinance. (2) Tae eR!aFg,e-aeRt Additions to, or substantial alterations sf FeGORStFUGtiGR of, nonconforming structures located in any--#erm- ba-sed a zoninq district intended to implement a Strateqic Growth Area Plan shall be permitted epAy either in accordance with the regulations of such district or of this section. No nonconforming use located in any form-based district may be converted to any other use except as allowed pursuant to the regulations of such district. COMMEN'T Thc amendment provides that additions to or substanYial alterations of nonconforming structures in zoning districts intended Yo implement an SGA Plans shall be allowed under either this section or the applicable regulations of'the particular zoning district in which the structare lies. 4 164 Sec. 107.1. Alternative compliance in #erm-base?-e#c-. certairs ciistricts. 165 --d+s#?+ 166 To the extent provided by the regulations of any #erm-ba-sed 167 zonin district 168 listed in Section 102(a)(13): 169 170 (a) The city council may grant special exceptions in accordance with the alternative 171 compliance provisions of the district to allow the development of new uses or structures, 172 or additions to or alterations of existing structures, that do not conform to the uses or 173 #erms-e? development standards otherwise permitted or required under the applicable 174 district regulations. 175 176 (b) The fee for applications for special exceptions pursuant to this section shall be in 177 the amount of four hundred ($400.00). 178 179 COMMENT 180 181 The amendments reflect the fact that the new Central Business Core District, as well as 182 future zoning districts that are intended to implement StraYegic Growth Area Plans, are not limited 183 to forin-basecl or overlay districts. "The amendments to subsection (a) are technical and in nature 184 and have no substantive effect. 185 186 .... 187 188 Sec.111. Definitions. 189 190 For the purpose of this ordinance, words used in the present tense shall include 191 the future; words used in the singular number include the plural and the plural the 192 singular; the use of any gender shall be applicable to all genders; the word "shall" is 193 mandatory; the word "may" is permissive; the word "land" includes only the area 194 described as being above mean sea level; and the word "person" includes an individual, 195 a partnership, association, or corporation. 196 197 In addition, the following terms shall be defined as herein indicated; provided that in the 198 event a term defined in this section is defined differently in the regulations of any form- 199 based district, the latter definition shall control if the property to which the definition 200 applies is located in the form-based district: 201 202 Automobile repair establishment . A building or 203 portion thereof, designed or used for servicing of automotive or other motorized vehicles 204 where repair services are limited to the following and no motor vehicle fuel is dispensed: 5 205 206 (a) Adjusting and repairing brakes; 207 208 (b) Emergency wiring repairs; 209 210 (c) Greasing, lubrication and oil change; 211 212 (d) Motor adjustments not involving removal of the head or crankcase; 213 214 (e) Providing and repairing fuel pumps and lines; 215 216 (fl Radiator cleaning and flushing; provision of water, antifreeze and other 217 additives; 218 219 (g) Replacement or adjustment of minor automobile accessories, to include 220 mirrors, windshield wipers and the like; 221 222 (h) Servicing of non-motorized bicycles; 223 224 (i) Sale and servicing of spark plugs, batteries, and distributors and distributor 225 parts; 226 227 (j) Servicing and repair of carburetors; 228 229 (k) Servicing, repair and sales of mufflers and exhaust systems; 230 231 (I) Tire sales, servicing and repair, but not recapping or regrooving; 232 233 (m) Washing and polishing, and sale of automotive washing and polishing 234 materials. 235 236 Uses permissible at an automobile repair establishment do not include body work, 237 straightening of frames or body parts, steam cleaning, painting, storage of automobiles 238 not in operating condition nor the operation of a commercial garage as an accessory 239 use. 240 241 Automobile service station Any establishment at which motor vehicle fuel is 242 dispensed at retail Such establishments may provide some or all of the services 243 provided b y an automobile repair establishment. 244 245 ... . 246 247 Major entertainment venue An establishment located within a Strateqic Growth 248 Area on any zoninq lot of one and one-half (1-1/2) acres or more in area and havinq 6 249 more than three hundred (300) feet of continuous street frontaqe on a public street or 250 streets the principal use of which is to provide entertainment consistinq of sportinq 251 events whether participatory or spectator, live theatre presentations or concerts, 252 conventions trade shows rides or other attractions typically found in amusement parks, 253 or similar types of entertainment. 254 255 .... 256 257 Outdoor amenity space An outdoor area of an establishment that: (1) serves as 258 an amenity for occupants of the establishment or members of the public or (2) consists 259 of qreen space such as qardens (includinq roof qardens) landscapinq beds or other 260 veqetated and maintained areas Examples of outdoor amenity sqace include, but_are 261 not limited to courtyards fountains plazas cafes and qardens but do not include 262 outdoor display areas. 263 264 .... 265 266 . An imagiRap? line, 267 etba6k 268 BaseloRe , 269 270 271 .... 272 273 Zoning lot. A lot or any portion thereof, or contiguous lots e#-r"°,am° under 274 common ownership within a single zoning district, which are to be used, developed or 275 built upon as a unit. For the purpose of this definition, lots of the same ownership 276 separated solely by an alley of no more than twenty (20) feet in width and by a distance 277 not exceeding the width of the alley shall be considered contiguous. In a Strateqic 278 Growth Area zoninq lots may include lots containinq parking structures not under 279 common ownership with the other lots provided that such parking structures are utilized 280 to satisfy in whole or in partthe vehicular parking requirements of one or more of the 281 uses on the zoninq lot and the property is developed in such manner that the uses 282 includinq the parking structures are functionally inteqrated by means such as, but not 283 limited to pedestrian connections similar buildinq materials and architecture and 284 similarly-styled siqnaqe Such siqns shall conform to the Central Business Core District 285 Siqn Desiqn Guidelines. 286 287 COMMENT 288 2$9 "The amendments: 7 290 291 (1) Differentiate between the terms "automobile repair establishment' and "automobile 292 service esYablishment or "automobile service station"; 293 294 (2) Add a definition of the term "major entertainment venue"; 295 296 (3) Add a definition of "outdoor amenity space"; 297 29$ (4) Delete the definition of "setback baseline," as the term is not used in the new 299 Central Business Core I)istrict regulations; and 300 301 (5) Update the definition of the term "zoning lot" to reflect common forms oi' 302 development in urban areas, in which a parking structure serving one or more 303 establishments is under separaYe ownership from those establishments 304 notwithstanding that the parking structure and the establishments it scrves are 305 developed as an integrated whole. 306 307 308 ARTICLE 2. GENERAL REQUIREMENTS AND PROCEDURES APPLICABLE 309 TO ALL DISTRICTS 310 311 A. REGULATIONS RELATING TO LOTS, YARDS, HEIGHTS, OFF-STREET 312 PARKING AND OFF-STREET LOADING 313 .... 314 315 Sec.201. Yards. 316 317 (a) General. All required yards shall be unobstructed by any structure or 318 other improvement which exceeds sixteen (16) inches in height as measured from 319 ground elevation; provided, however, the following improvements may be located in a 320 yard: 321 322 .... 323 324 (9) Encroachments into required setbacks allowed by, and subject to, the provisions 325 of +p n„o nfrEnt C?o E.+ n; trin+ Fnrm Q-,sod Ca zoninq district listed in Section 326 102 a 13 . 327 328 COMMENT 329 330 The amendments broaden the provisions of this section Yo include any zoning district 331 intended to implement the provisions of a Strategic Growth Area Plan. 'I'o date, such districts 332 include the Oceanfront Resort District and the new Central Business Core District. 333 8 334 .... 335 336 Sec. 203. Off-street parking requirements. 337 338 (g) Parking requirements in the _R-3 339 8-4C Central Business Mixed Use Districts. 340 ttNS-v°cviivp, chCrtJ-vA-pTCmbro1"cn ('nntr•,l Rci 341 342 professional . > > 343 UtiliZat'GR, , 344 i , . 345 m. Within the B-4C Central Business 346 Mixed Use District, there shall be provided for nonresidential uses, except hotels and 347 uses accessory to hotels, no fewer than three (3) spaces per one thousand (1,000) 348 square feet of gross floor area, and for residential uses no fewer than one and seven- 349 tenths (1.7) spaces per dwelling unit. Parking requirements for hotels and uses 350 accessory to hotels shall be as specified in subsection (a). 351 352 (h) Same; shared parking. Notwithstanding anything in this ordinance to the 353 contrary, required off-street parking for any use located on property within the B-3A 354 pemhro-o ('nTmrn?l Ba?iness?C-p-ro n,S+r,,.+ or g_4C Central Business Mixed Use District 355 may be made available for use by the general public as well as by the customers or 356 patrons of such use; provided, however, that +r?-'"° R4r ron+ral R„G;..oss nn;xod Usn 357 s+s#F+et, no parking space shall be used to satisfy the parking requirement of more than 358 one (1) establishment. The required number and dimensions of parking spaces shall be 359 as specified in this section. 360 361 (i) PubI+e Required parking in the R3o DomhrnLo ('ontral R? icinocc ?'nr ?..... o nnrl r-va.+... ?...... 362 B-4C Central Business Mixed Use Districts. Parking requirements for uses within the B- 363 Central ,,GE)Fe n,S+r;,.+ er g_4C Central Business Mixed Use 364 District may be satisfied by any one, or a combination of, the following: 365 366 (1) On-site parking; 367 368 (2) Off-site parking facilities, as set forth in section 901 of this ordinance; or 369 370 (3) Public parking, if the Planning Director determines (i) that there is at least 371 a sufficient number of public parking spaces located within the same 372 development phase of the District as the proposed use to meet public 373 parking demands; (ii) that for uses in the B-4C Central Business Mixed 9 374 Use District, such public parking spaces are not used to satisfy the parking 375 requirements of any other use, and (iii) that the use of such public parking 376 spaces to satisfy the parking requirements of the proposed use, either 377 wholly or partially, is warranted in light of the following considerations: 378 379 A. The extent to which the proposed use advances the goals and 380 objectives of the R23.4 p°mhm o rentFal g?????s Gere n,S+r,G+ .,r 381 B-4C Central Business Mixed Use District, ^s +"° ^°s° m° as 382 stated in section 900 of the City Zoning Ordinance; 383 384 B. The extent to which the proposed use conforms to the k1rhan 385 386 387 . 388 i , 389 the Mixed Use Development Guidelines; and 390 391 C. The amount of the projected tax revenue to be generated by the 392 proposed use and improvements. 393 394 (j) Any regulation pertaining to vehictalar parking in a#Fm -ba-sed zonin 395 district listed in section 102(a)(13) d+s#Fist that conflicts with a provision of this section 396 shall be deemed to control to the extent of such conflict. 397 398 For purposes of this section, the term "parking requirements" shall mean the number of 399 off-street vehicular parking spaces required by this section. 400 401 COMMENT 402 403 The amendments delete the provisions of this section that apply in the B-3A Pembroke 404 Central 13usiness Core District, as the new Central Business Core District regulations contain 405 equivalent provisions. The amendments in subsection (j) broaden the remaining provisions of this 406 section to include any zoning district intended to implement the provisions of a Strategic Growth 407 Area Plan. To date, such districts include the Oceanfront Resort District and the new Central 408 13asiness Core llistrict. 409 410 .... 411 412 10 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 Sec. 208. Portable storage containers. Portable storage containers located outside of an enclosed building or structure shall be allowed only as specified in this section and subject to the following regulations: (d) Hotel, Office, and RT-1 Resort Tourist; Districts; Strateqic Growth Areas. In the Hotel, Office; and RT-1 Resort Tourist aRd--9R Districts and districts listed in section 102(a)13), portable storage containers shall be allowed as follows: (1) When used in connection with bona fide construction activity on the site and for an additional period of twenty-four (24) hours before and after such activity, portable storage containers shall be allowed without limitation as to the number of portable storage containers; and (2) Portable storage containers shall be allowed for a period not exceeding sixteen (16) days when used in connection with the moving or relocation of a commercial establishment located, or to be located, on the site. COMMENI' The amendments broaden the provisions of this section Yo include any zoning district intended to implement the provisions of a Strategic Growth Area Plan. To date, such districts include the Oceanfront Resort District and the new Central I3usiness Core District. B. SIGN REGULATIONS. Sec. 210. General regulations. (a) The regulations set forth in this part shall apply to signs in all zoning districts, including #??m ba6ed zoning districts listed in Section 102(a)(13). 11 452 COiViMEN'r 453 454 The amendments broaden the provisions of this section to include any zoning district 455 intended to implement the provisions of a Strategic Growth Area Plan. To date, such districts 456 include the Oceanfront Resort District and the new Central I3usioess Core District. 457 458 .... 459 460 Sec.210.2. Definitions. 461 462 The following definitions shall apply to all regulations pertaining to signs in this 463 Ordinance, including regulations governing signs in f^rsed zoning districts listed in 464 Section 102(a)(13): 465 .... 466 467 Bu#dipg . 468 . 469 .... 470 COMMEN'T 471 The amendments broaden the pravisions of this section to include any zoning district 472 intended to implement the provisions of a Strategic Growth Area Plan. To date, such districts 473 include the Oceanfront Resort District and the new Central Business Core llistrict. In addition, the 474 deiinition of "building frontage" is deleted as unnecessary. 475 .... 476 Sec. 212. Prohibited signs. 477 478 The following signs shall be prohibited: 479 .... 480 (c) Signs in any public right-of-way, except as provided in section 211(a) or 481 section 211(k), or as allowed in any #r+n-based zoning district listed in Section 482 102 a 13 or Arts and Cultural District. 483 ... 12 484 (I) Signs in violation of section 33-114. 41 of this Code, except for signs that 485 are allowed to encroach into the public right-of-way under the applicable regulations of 486 any #orm based zoning district listed in Section 102(a)(13) or Arts and Cultural District. 487 488 COMMENT 489 The amendments broaden the provisions of this section to include any zoning district intended to 490 implement the provisions of a Strategic Growth Area Plan. To date, such districts include the 491 Occanfront Resort DistricY and the new Central Business Core District. 492 .... 493 Sec. 218. Major entertainment venue siqns. 494 Siqnaqe for maior entertainment venues other than siqnaqe otherwise allowed, 495 shall be allowed only with the approval of the City Council and shall be subiect to the 496 Followinq requirements: 497 498 (a) An application for such siqnaqe shall be submitted to the Planninq Director 499 by the property owner, contract purchaser with the written consent of the property 500 owner, or the duly authorized aqent for the property owner. Applications shall include a 501 fee in the amount of Eiqht Hundred Dollars ($800.00) and the required plan as 502 described in subsection (b) alonq with any othet information required by the Planning 503 Director. Applications shall be heard by the Planninq Commission and the City Council 504 in accordance with the procedures prescribed in subsections (d) and (e) of Section 221 505 of the City Zoninq Ordinance. 506 507 (b) The siqn plan shall show, in the form and manner specified by the 508 Planninq Director, the type location setback size dimensions and heiqht of all siqns, 509 and anV other characteristics of or information pertaininq to such siqnaae deemed 510 necessary bLr the Planninq Director in order to adequately evaluate the proposed siqn 511 plan accordinq to the criteria set forth subsection d. Individual banners intended to 512 display special or recurrinq events or activities shall not be required to be approved 513 separately, but it shall be sufficient that the sign plan show the number, size and 514 location of banners generally. 515 516 (c) Where a sign plan includes electronic display siqnaqe the followinq 517 additional information shall be provided: 518 519 (1) The pixel qitch of the proposed electronic display siqns; 520 13 521 (2) Whether such siqns wili dispiay static or animated text or imaqes, 522 and the dwell time for each dis la ? 523 524 (3) The maximum and minimum illumination level in candelas per 525 square meter, and the times durinq which such illumination levels 526 will be used; and 527 528 (4) In no case shall any electronic display siqn contain, or be 529 connected to audio speakers and all electrical service lines 530 providinq power to such siqns shall be underqround. 531 532 (d) The City Council shall consider the followinq criteria in acting upon an 533 application: 534 535 (1) The extent to which the proposed siqnaqe is consistent with 536 applicable Siqn Desiqn Guidelines, if any; 537 538 (2) The extent to which the proposed siqnaqe is consistent with the 539 recommendations of the Comprehensive Plan; 540 541 (3) The extent to which the scale color, materials shape, illumination 542 and landscapinq of the proposed signaqe considered as a whole, 543 is compatible with surroundinq properties; 544 545 (4) The impact of the proposed siqnage on traffic safety, takinq into 546 consideration the degree to which view obstructions are created or 547 improved avoidance of confusion with or obstruction of traffic 548 control siqns and devices and other safety-related factors; and 549 550 (5) The deqree to which the proposed siqnaqe is inteqrated into a 551 unified development concept considerinq the buildinq desiqn, other 552 siqns landscapinq traffic circulation and other development 553 features of the property. 554 555 COMMENT 556 1'he section sets f'orth regulaYions for signage for major entertainment venues, which are 557 detined in Section 111 above. The language is substantially similar to that of the corresponding 558 regulations in the Oceanfront Resort llistrict Form-Based Code (O1ZllF13C). Because this section 559 applies to all such signage within the City, it is being deleted from the ORDFI3C as no longer 560 necessary. 14 561 C. CONDITIONAL USES AND STRUCTURES 562 .... 563 Sec. 225.01. Bars or niqhtclubs. 564 565 (a) Requirements In addition to qeneral requirements bars or niqhtclubs 566 shall be subiect to the followinq requirements which shall be deemed to be conditions 567 of the conditional use permit: 568 (1) Cateqory VI landscapinq shall be installed alonq anv lot line 569 adjoininq a residential or apartment district without an intervening 570 street alley or body of water qreater than fifty (50) feet in width. 571 The fencinq element of such landscapinq shall not be less than six 572 (6) feet nor more than eiqht (8) feet in heiqht and shall be free from 573 graffiti Landscapinq and fencinq shall be maintained in qood 574 condition at all times; 575 576 (2) The operation of such establishments shall not disturb the 577 tranquility of residential areas or other areas in close proximity or 578 otherwise interfere with the reasonable use and enioyment of 579 neiqhboring property by reason of excessive noise traffic, overflow 580 parkinq and litter. Noise from any establishment located within five 581 hundred (500) feet of an rLresidential or apartment district or use or 582 hotel shall not be audible from outside the buildinq in which such 583 establishment is located or, where such establishments are located 584 in a freestanding buildinq from any location not on the same lot, 585 except when exits are opened to allow patrons emplovees or other 586 persons to exit; 587 588 (3) Operators of such establishments shall not allow loiterinq or 589 congreqations of individuals in the parkinq lot or other exterior 590 portions of the premises except for areas in which the consumption 591 of alcoholic beveraqes is specifically permitted by the terms of the 592 establishment's alcoholic beveraqe control license and shall keep 593 all entrance and exit doors closed at all times of operation, except 594 when patrons employees or other persons are actually enterinq or 595 exitinq the establishment; 596 597 (4) Such establishments shall be required to implement anv other 598 reasonable measures the citv council deems necessarv or 15 599 appropriate to miriimize noise or other potential adverse effects 600 upon neiqhborinq areas; and 601 602 (5) No increase in the combined area of the dance floor and any other 603 standinq space shall be allowed without the approval of the citv 604 council if, after such increase the combined area of the dance floor 605 and other standinq space exceeds fifteen (15) percent of the total 606 floor area of the establishment. 607 608 (b) Violafions A violation of any of the aforesaid requirements shall be 609 qrounds for revocation of the conditional use permit in accordance with the provisions of 610 section 221(h); provided however, that where a bar or niqhtclub has not previously 611 been found to be in violation of the conditional use permit the zoninq administrator shall 612 give notice of the violation to the property owner or operator of the establishment 613 alleqed to be in violation of the conditional use permit and allow a reasonable time for 614 the violation to be corrected or remedied prior to the institution of proceedinqs to revoke 615 the conditional use permit under section 221(h) Any findinq bv the zoninq administrator 616 that a bar or niqhtclub is in violation of the conditional use permit may be appealed to 617 the board of zoninq appeals in accordance with section 106. 618 619 (c) Accessory uses Bars or niqhtclubs shall not be allowed as an accessory 620 use in any zoninq district. 621 622 (d) Expansions etc Notwithstandinq any other provision of this ordinance, no 623 conditional use permit or resolution pursuant to section 105(d) shall be required for the 624 enlarqement extension reconstruction or structural alteration of a bar or niqhtclub 625 lawfully in existence as of fdate of adoption of amendmentsl, provided that: 626 627 (1) It has not previously been found to be in violation of the conditional 628 use permit authorizing it, if any; 629 630 (2) The net occupant load of the bar or niqhtclub is not increased as a 631 result of the enlarqement extension reconstruction or structural 632 alteration; 633 634 (3) The bar or niqhtclub has not been expanded or extended since fthe 635 date of adoption of this section "mondmontcl; and 636 16 637 (4) Except with resuect to structiaral alterations or reconstructions not 638 resultinq in an incrPase in occupant load such bar or niqhtclub is not 639 located within an aceident potential zone (APZ). 640 641 642 It shall be a condition of any enlarqement extension reconstruction or structural 643 alteration pursuant to this section that the bar or niqhtclub shall thereafter be subiect to 644 the standards and conditions set forth in subsection (a) hereof. Any enlarqement, 645 extension reconstruction or structural alteration of a bar or niqhtclub not meetinq the 646 criteria set forth herein may be allowed by the citv council in accordance with section 647 105(d) or by conditional use permit as the case may be. In the event any such standard 648 or condition is found by the city council to have been violated it may revoke the 649 permission to enlarqe extend reconstruct or structurally alter the establishment. Any 650 enlarqement extension reconstruction or structural alteration of a bar or niqhtclub not 651 meetinq the criteria set forth herein may be allowed by the city council in accordance 652 with section 105(d) or by conditional use permit as the case may be. 653 654 COMMENI' 655 'This section is included solely in order to renumber thc provision to maintain alphabetical 656 order of the conditional uses listed in this part of the CZO and to make a technical correction 657 having no substantive effect in subdivision (d)(3) . 658 .... 659 Sec. 228.1. Car wash facilities. 660 In addition to qeneral requirements the followinq special requirements and 661 limitations shall apply to car wash facilities in districts in which they are qenerally 662 permitted: 663 (a) No water produced by activities at the facility lot shall be permitted to fall upon or 664 drain across public streets or sidewalks or adlacent properties; and 665 (b) A minimum of three (3) off-street parkinq spaces for automobiles shall be 666 provided for each car wash space within the facility, unless otherwise provided in the 667 conditional use permit. 668 COMMENI' 669 The new section makes provision f'or car wash facilities. Currently, the same requirements 670 are set l?orth in the use regulations of the individual districts in which car wash facilities are 671 allowed; the placement of those requirements in this new section eliminates the oeed for repetition. 17 672 .... 673 SeG. . . [RESERVED] 674 675 , 676 ? 677 678 679 . Ppevmded, heweveF, 680 681 SUGh GhUwh-: 682 683 ; provided, however, , 684 685 ' 686 sUGh sign'ch II hvo mnro +h'+n finin /7\ f_an ? i 687 COMMENT 6$$ This section makes no changes from the current CZO provision and is included solely in 689 order to renumber the provision to maintain correct 3iphabetical order of the conditional uses 690 listed in this part of the CZO. 691 .... 692 693 .- [RESERVED] 694 695 ? , 696 t 697 {a}-- , 698 , 699 ieGt. 700 , 701 , 702 703 18 704 CCjMMEh'.1, 705 This section is deleted, as the new Cerriral Business Core District regulations contain none 706 of the limitations set forth in this section and rnultipie-family dwellings are principal, rather than 707 conditional, uses. 708 .... 709 Rars „r .,inh+rl.?_?? [RESERVED] ? 710 711 . in addition W geReFal requirements, 712 , 713 : 714 _ho aleng aRy-'et--l1;;A 715 716 street, . 717 718 719 graffdti. 720 sQnd}tinn ••+ •,II timoc• ?, 721 722 723 tran . 724 ethepasosG f?ere wit" t e---reaseRnhlo nd onioymoRt _of 725 ose, traffiG, eveFfiew 726 . 727 728 729 °+csrAVirJ'-ti-rr°cnt-s-ivcatCd-ei, VttPro unh o+ hliohmori+ ro Innato? 730 , from any IOGafiGR net OR the same let, 731 , 732 noronric +„ a,ot; 733 734 735 tho p^rLinn In+ nr nthor oFOE)r 736 , 737 738 establoshment's , 739 all °-?nGe aRd- ° i+ rlnnr r+ln oiJ t II +imos nf nr?ora4ien ovnor?t r 19 740 wheR ', eMp4Gy°°°?-°'-et-h 741 0 iti^^ tho oc+?hlicF.m? .,.,.?.......... , 742 743 744 745 746 ; aRd 747 748 749 750 GeUiRGdl o , , 751 752 flnnr ro nf +ho oc4Mhlichmorit 753 754 /h`?- . 755 756 6eGtien ; pFevaded, howeveF, 757 , 758 759 760 the vi 761 762 f-;"°„?? . 763 . 764 765 . 766 . 767 768 , etG. NetwothstandoRg aRy etheF PFGV;S*eR of this E)FdinaRGe, 769 770 eniargerneRt, exteRSOE)R, 771 : 772 773 774 775 776 777 , ? reGOR6tFUGtiOR ?UGtUrat 778 alterateen; 779 20 780 41as--not-- 781 ; a 782 783 4G-,# 784 , 785 786 787 , exteRSion, 788 789 . Any , 790 i , 791 792 it, as the Gase may be. 793 . 794 , exteRd, FeG()RStFLAGt OF StFUGtUrally alter the establoshmeRt. ARY 795 eRlargerneRt, i , 796 797 , as the Gase may be. 798 799 COMIVIENT 800 This section makes no changes from the current CZO provision and is included solely in 801 order to renumber the provision to maintain correct alphabetical order of the conditional uses 802 listed in this part of the CZO. 803 Sec. 239.05. Parking structures and parking garaqes. 804 (a) In addition to the general standards set forth in section 220, the city 805 council shall consider the extent to which the following standards have been met in 806 deciding applications for conditional use permits: 807 (1) Access to the parking structure is designed so as not to disrupt or gpg obstruct the flow of traffic on adjacent public streets; gpg (2) The parking structure provides adequate ingress and egress to all 810 parking spaces, ample clearance, and safe pedestrian access; 811 (3) Safety features such as glass-backed elevators, interior scanning 812 systems and alarm systems have been incorporated to ensure the 813 well being of pedestrians and vehicles; and 21 814 (4) The architecture, building materiais, signage and landscaping are 815 of high quality and conform to the design standards for parking 816 structures set forth in the Comprehensive Plan Reference 817 Handbook (Speciai Area Development Guidelines for Urban Areas 818 and Special Purpose Guidelines re: Parking Structure Standards) 819 or, in zoning districts listed in section 102(a)(13) to the desiqn 820 quidelines applicable in such district. 821 (b) In addition to the information required by section 221(a), an application for 822 a conditional use permit shall include the following: 823 (1) A site plan showing access, parking spaces, traffic control, lighting, 824 drive aisles, elevators, stairwells, pedestrian access features, 825 interior clearance and landscaping; 826 (2) Building elevations or renderings showing architectural styling, 827 building materials and colors and signage; and 828 (3) A narrative describing safety features to be employed 829 (c) Except as provided in section 1501(a)(1)(iv) or in the regulations of any 830 #orrn-base? zonin district listed in section 102(a)(13), in districts in which they are 831 aJJewed by conditional uses perm+t, parking structures and parkinq qarages shall not be 832 allowed as accessory uses. 833 (d) Parking structures and parkinq garaqes located in any #Frn-based zonin 834 district listed in section 102(a)(13) shall be subject to the applicable provisions of such 835 district in addition to the provisions of this section. 836 COMMENT 837 The amc:ndments add "parking garages" to Yhe section and eliminate potential conflicts 838 between this section and the provisions of zoning districts intended to implement Strategic Growth 839 Arca Plans. 840 .... 841 Sec. 240.1. Reliyious uses. 842 843 In addition to qeneral requirements the followinq special requirements and 844 limitations shall applv to reliqious uses in districts in which they are qenerallv permitted: 845 (a) Minimum lot area The minimum lot area shall be three (3) acres. 22 846 (b) Off-street parkinq. At Ieast one space per five (5) seats or bench seatinq 847 spaces in the main auditorium; provided: however, that the requirement for any church 848 located in a shoppinq center shall be as specified in the conditional use permit allowinq 849 such church. 850 (c) Siqns shall be permitted in accordance with the requlations of the district 851 in which the use is located; provided however, that in residential districts reliqious uses 852 shall be allowed one (1) sign per entrance not to exceed twenty-four (24) square feet 853 per face or such other siqnaqe as may be specified in the conditional use permit. No 854 such siqn shall have more than two (2) faces. 855 COMMENT 856 This section makes no changes from the current CZO provision and is included solely in 857 order to renumber Yhe provision to maintain correct alphabetical order of the conditional uses 858 listcd in this part of the CZO. 859 860 D. DESIGN, ETC. STANDARDS FOR RETAIL ESTABLISHMENTS AND 861 SHOPPING CENTERS 862 .... 863 Sec. 244. Applicability; rules of corrstruction; tnodifications. 864 (a) The provisions of this part shall apply to the construction of new retail 865 establishments, including conversions of other uses to retail use, and to additions or 866 expansions of existing retail establishments where the gross square footage of floor 867 area thereof is increased by fifty (50) percent or more; provided, however, that the 868 provisions of this part shall not apply to establishments located within O 869 a zonin district listed in section 102(a)(13). 870 COMMENT 871 $72 The amendments broaden the provisions of this section to exclude any zoning district 873 intended to implement the provisions of a Strategic Growth Area Plan. To date, such districts 874 include the Oceanfront Resort llistrict aod the new Central Business Core District. 875 876 .... 877 878 23 879 ARTICLE 9. BUSINESS DISTRICTS. 880 881 Sec. 900. Legislative intent. 882 883 The purpose of the B-1 Neighborhood Business District is to provide areas where 884 a limited range of business establishments can be located near or adjacent to 885 residential development without adversely impacting the adjacent residential area. The 886 purpose of the B-1A Limited Community Business District is to provide areas where 887 limited commercial development can be dispersed to support the needs of nearby 888 residential neighborhoods. The purpose of the B-2 Community Business District is to 889 provide land needed for community-wide business establishments. This district is 890 intended for general application in the city. It is intended that, by the creation of this 891 district, business uses will be geographically concentrated. The purpose of the B-3 892 Central Business District is to set apart that portion of the city which forms the 893 metropolitan center for financial, commercial, professional and cultural activities, 894 iricluding business, professional and cultural development in a manner that 895 complements the R2 ' 4 p°mhrnU° CBC Central Business Core District and the policies 896 identified in the City of Virginia Beach Comprehensive Plan. It is intended that any uses 897 likely to create friction with these proposed types of activities will be discouraged. This 898 district is not intended for genera{ application throughout the city. 899 ?al fer a 900 mixed , pedestFiaR , 901 tt rocirlon4iaI ni ?I?i irnl ? 902 . 903 ?UWi , 904 o ' the 905 1m-p4emeRtatiGR . 906 Co,-o n,?;St; *Gt. , jeaRne 907 Str , 908 , 909 e€ the-S+t . l 910 as-set ferth in ontieri 'I in nr . „ 105, . , ?. 911 P'e ? . The purpose of the B-4 Mixed 912 Use District is to provide for retail and commercial service facilities and residential uses, 913 including high-quality workforce housing in appropriate areas within the district, 914 including Strategic Growth Areas, in those areas of the city where a mixture of such 915 uses is desirable and recommended by the policies of the Comprehensive Plan. The 916 purpose of the B-4C Central Business Mixed Use District is to provide an area that 917 complements the 6 3A DomhrnLo Central Business Core District through quality mixed 918 use development at intensities and patterns that support multiple modes of 24 919 920 921 922 923 924 925 926 927 928 929 930 931 932 933 934 935 936 937 938 939 940 941 transportation, higher residential densities, incfuding high-quality workforce housing in appropriate areas within the district, and an integrated mix of residential and non- residential uses within the same building or on the same lot. Requests for rezonings to the B-4C Central Business Mixed Use District shall be limited to the area SUFFeURdung +???????Feke Gontral R„ ,no&s r re QiStF;ot pn4 generally bounded by Thalia Creek on the east, Interstate 264 on the south, Aragona Boulevard on the west, and Jeanne Street and Broad Street on the north. Development within the B-4C Central Business Mixed Use District should adhere to the Comprehensive Plan's Mixed Use Development Guidelines. The purpose of the B-4K Historic Kempsville Area Mixed Use District is to provide an area that complements the adjoining residential neighborhoods through quality mixed use development at intensities and patterns that support multiple modes of transportation, higher residential densities, including high-quality workforce housing in appropriate areas within the district, including Strategic Growth Areas, and an integrated mix of residential and nonresidential uses within the same building or on the same lot. Rezonings to the B-4K Historic Kempsville Area Mixed Use District shall be limited to property within the area generally bounded by Kempsville Heights and Kempsville Lake to the north, Cedar Run Canal to the south, Kempsville Gardens and Kempsville Manor to the east, and Eastern Branch of the Elizabeth River to the west. Development within the B-4K Historic Kempsville Area Mixed Use District should conform to the Comprehensive Plan's Mixed Use Development Guidelines and the Historic Kempsville Area Master Plan or, in the event of a conflict, should conform to the Historic Kempsville Area Master Plan. 942 COMMENT 943 944 The amendments delete references to the B-3A Yembroke Central Business Core District, as 945 the district will be supplanted by the new CBC Central Business Core District. 946 Sec. 901. Use regulations. 947 (a) Principal and conditional uses. The following chart lists those uses 948 permitted within the B-1 through B-4K Business Districts. Those uses and structures in 949 the respective business districts shall be permitted as either principal uses indicated by 950 a"P" or as conditional uses indicated by a"C." Uses and structures indicated by an "X" 951 shall be prohibited in the respective districts. No uses or structures other than as 952 specified shall be permitted. 953 25 954 Use Animal hospitals, veterinary establishments, pounds, shelters, commercial kennels, provided all animals shali be kept in soundproofed, air- conditioned buildings Assembly uses Automobile museums _ .......... 'Automobile repair garages and small engine repair establishments, provided that all repair work shall be performed within a building B -;B- ;B-;B-'B- ;B-;B- ;B-4K 1 (1A12 13 13Ai4 14C? P !P iP ;P ?P- ;P IP !P C iC ;C iC !S ;C ?C ;C X;C tC IC Ix FC !C !C X iX (C (X `x ;C iX ;X A, itotnob+le-?sa} ' X, IX ,.,1 3{ E axb f?ive i ? 3 t PfGV4d?r1_.? at ?+I'.M(lryl(1?'1110 ?01'-1l?0 C?i?InYL Ct1 rac,tvrrrvv. ?. ....? _ - -' "- ? t Automobile service stations; provided that, where there is an adjoining residential or apartment district without an intervening 'street, alley or permanent open space over twenty-five (25) feet in width and where lots separated by a district boundary have adjacent front yards, Category VI screening shall separate the automobile service station use from the adjacent residential district or apartment district and no ground sign shail be within fifty (50) feet of the residential district or apartment district X ix ? l.i ! lJ `= r°c C i x ix Bakeries, confectioneries and ? P! P ` P? P j42 j P? P j P delicatessens, provided that products prepared or processed on the premises shall be sold only at retail and only on the premises ; I Bars or nightclubs Bed and breakfast inns X iX liC IC iS (C IC IC X ?X `X ';X ;x EC ;X ;C 26 Body piercing establishments Borrow pits X •X ;C iX ,x X X °X X ?X ;C ;X A ;X iX IX Building-mounted antennas meeting the ?X ;X ! requirements of Section 207 i 3 __. _....._._ ___. . .._. :.... Bulk storage yards and building contractors ;X jX yards; provided that no sale or processing 'of scrap, salvage or secondhand material shall be permitted in such yards; and, , provided further that such storage yards ;shall be completely enclosed except for 'necessary openings in ingress and egress by a fence or wall not less than six (6) feet in height ? , Business and vocational schools which do ' not involve the operation of woodwork 'shops, machine shops or other similar facilities Business studios, offices and clinics ' Car wash facilities, provided . (0) ne 'vv,at aGr- , / ?,??Q\ 8rf + 004 arLinn cnonoc fe. .,r....,.,., . 4 subject to the provisions of Section 228.1. P iP ip- `;P ;P !X C iX ')( 'X IX iX X iC ;C iC 1S !C ;C ;X P :P P `:P ;42 iP !P ;P X FX !C IC ':S ';C iX jX Child care and child care education centers ; C; C `P ' P iR ; P r P ? C _.-- . , Colleges and universities, public or private ; X; C ; C; C I S; C IC ! X 27 Commercial parking lots, parking garages, iX iX I P `P p- µP ?P C ; parking structures and storage garages ? Commercial parking garages and storage 1X XIC, CR ? C? P 1X garages which include car wash, car rental or car detailing services when wholly ?enclosed within a parking structure and ? 4 ? j t accessory thereto ? Communication towers meeting the ? P? P = P? P j R ? P; P E P 'requirements of Section 2320) 3 E ? Communication towers, except as specified IX 'C ;C C ?S C(C _X above ?Dormitories for marine pilots iX fX EX EX I)( ;C ?X ?X = ? Dru9stores, beautY shoPs and barbershops; P P ?. ? PFP `P = P? P P , and other similar personal service establishments; provided that drive-through !windows shall not be allowed in the B-4K District Dwellings, Attached ? X = X X:x X ? P 'Dwellings, Multi-family iX X `X =P iC C ? E ; Eating and drinking establishments without ?X lX ;X ;X 'P XTI P ? P 'drive-through windows, when not 'freestanding and incorporated inside a mixed use building, except as otherwise ?specified in this section , Eating and drinking establishments with i X jX i P= P:X s P j X ; X drive-through windows, except as specified below Eating and drinking establishments without P? P PIX ; Pi X i X drive-through windows, except as specified below Fiber-optics transmission facilities X E C ? C i C; G € X iC ; X ; Financial institutions; provided, that drive- ; P P s P P=P `P j P ? P 'through windows shall not be allowed in tne ; ? r ? ? ? . . . _.. _ .... ?._.. _ . _ ..... ..: . _? . ..,..... `. ? ...... . .. : 28 B-4K District Florists, gift shops and stationery stores Funeral homes Furniture repair and upholstering, repair services for radio and television and household appliances other than those with 'gasoline engines; carpet and linoleum Jaying; tile setting, sign shops and other small service businesses ' Greenhouses and plant nurseries p ;p `P ;P 'P- !,P;P iP X iP IP !P )( ;P IX lX X ?P I P P -"X iP1X E_X X iP €P 'X ;P jX €X Grocery stores, carry-out food stores and i C? C E P ? P ?-x ? P; X =X ? ;convenience stores all being both 'freestanding and in a structure with a gross '.floor area of less than five thousand (5,000) i 'square feet r r Grocery stores, carry-out food stores and convenience stores whether or not ;freestanding, but in a structure of a gross 'floor area of not less than five thousand (5,000) square feet ' Grocery stores, carry-out food stores and convenience stores any of which are not ? ifreestanding but in a structure with a gross ! floor area of less than five thousand (5,000) ; 'square feet X 'X ;P ;P S ;;P iC iX E P 3P P :P 'S ;p_iC ?...C Heliports and helistops X ? X C; C S'C. C ` X ? Home-based wildlife rehabilitation facilities C_C C XiX ?X .X , _._ --------- - .. ?..___ .. _.._ ...._. Horne occupations X X ;X ;X S ;C iC ;C Housing for seniors and disabled persons C: C ; X X'S : C' C C ; 'or handicapped, including convalescent or nursing; maternity homes; child care ;centers other than covered under permotted principal uses hereinabove, provided that ? , I < < the maximum height shall not exceed one `s hundred sixty-five (165) feet; provided, 29 ,._ __ .. . ____ ..__ ._.._ .. __.. . Hotels and motels with increased lodging ' unit density and height, provided that the , maximum density shall be one hundred twenty (120) lodging units per acre, the minimum lot area shall be one (1) acre and the maximum height shall be one hundred '(100) feet; notwithstanding the above, no structure shall exceed the height limit established by section 202(b) regarding air navigation ?,,-- Laboratories and establishments for the production and repair of eye glasses, hearing aids and prosthetic devices Laundry and dry cleaning agencies Liquor stores, package only Marinas, commercial Medical and dental offices and clinics ,_ .._ _.... _. Medical laboratories Mini-warehouses X iX €^ 3„ i? i" l^ A ; ?X ?X ;P ;P `p-;P ?P 'P P ;P `P ;P i.p- P !?!P ;P X IX ;P IP 'R (P jP `P X lC iC iC ;X iC IX X Mobile home sales ?X ?X ;C rX . 'Motor vehicle sales and rental, provided the ;X ?X ?C =C ' minimum lot size is twenty thousand ; ' (20,000) square feet; and provided further, i i i that truck and trailer rentals shall comply ; 1 'with the provisions of section 242.2 ( _ _.. __._. ?. Motor vehicle sales and rental, provided ? X' X' X? X such use is wholly enclosed within a 30 X !X ?X ;X X ;C iX aX F a , p- tX ! P tX building, and further provided that no outdoor use accessory to or in conjunction ?with the principal use shall be allowed ? Museums and art galleries ? C? A P; P ?p-; P; P? P Newspaper printing and publishing, job and ? X ? P j P? P p-` P; P j P 'commercial printing , Off-site parking facilities, subject to the ' provisions of subsection {s? (d) Open-air mark2ts Outdoor cafes ' Outdoor plazas X ?X `X ;P ;P- `;X !P jX X iX C IC iS 1C ':C ;X P :P ;P IP p- I P iP ;P P !P `P ;P ?_12 ;P IP iP ....... , -----,-- ? -i---- , Passenger transportation terminals 3 X? X 1CIC ?S i C I C; X ? Passenger vessels permitted by U.S. Coast X' X ; C?X X j C; X!X Guard regulations to carry more than one ? hundred forty-nine (149) passengers and 'used for commercial purposes Personal service establishments, other , P:P P! P ;p- ? P; P? P than those listed separately ? Personal watercraft rentals ; X j C ; C'C , iXa C j XiX E '.., __.?.._ r.._ .......... .... .?e.- . ............_.............. .........._......... _..,,,,.... ..,...e._ _.,?._.. Public buildings and grounds j P P' P? P i _.... ` ........... .. . Y__...... ?-R ? P P? P ? Public utilities installations and substations ; P I P ? P` P 12 i P 1P ?P provided storage and maintenance facilities shall not be permitted; and provided further that utilities substations, other than individual transformers, shall be 'surrounded by Category IV screening solid except for entrances and exits; and provided also, transformer vaults for underground utilities and the like shall require only Category I screening, solid except for access openings Public utilities offices ? ?X_X ' P` P P P i P 31 Public utility storage or maintenance installations Radio and television broadcasting stations Recreation facilities other than those of an outdoor nature, with a floor area greater than 7,500 square feet ' Recreational and amusement facilities of an outdoor nature, which may be partially 'or temporarily enclosed on a seasonal basis with approval of city council; provided that, in the development of such properties, 'safeguards are provided to preserve and ' protect the existing character of adjacent properties, except that riding academies ' and recreational campgrounds shall not be 'allowed as a conditional use or otherwise __ ... . ... _ _ . .i .__ -,_._..... X :X :C C ?X :C ?X IX ; i ? X C'C :C S IC X X 'X `C ;C ?G P I C €X X 'C °C ;C ?c jC jC (X _- Recreational facilities other than those of IXiX i P? P p- ; P ° P?X an outdoor nature, with a maximum floor !area of 7,500 square feet Religious uses with a floor area greater !than 4,000 square feet ; Religious uses with a maximum floor area ' of 4,000 square feet Repair and sales for radio and television ' and other household appliances and small business machines C ?C ?C EC 3S C ?C IC P ?P ?P IP ;P-!P EP ;P P iP !P P 12 iiP 1P fP ' Retail establishments, other than those ' listed separately, including the incidental manufacturing of goods for sale only at retail on the premises; retail sales and ' display rooms and lots, provided that yards ` for storage of new or used building materials or yards for any scrap or salvage E operations or for storage or display of any scrap, salvage or secondhand building ' materials or automobile parts shall not be ; allowed, further provided that adult book stores shall be prohibited from locating ' _ _..... _..._. : X ;P P iP 1 -12 iP ;F ' X 32 within five hundred (500) feet of any 'apartment or residential district, single- or ; ' multiple-family dwelling, church, park, or school i ? Satellite wagering facility €X !X `C ;C ,G ;X C iX ! Single room occupancy facility 'iX ?X E ? ;X?X 'X C I C `C Specialty shops EC 1 P ? P P i p- P? P? P ; _.. ._..._.._ _ ...... ............__._...._.._.... ..?.___ ..,._..._._....,_.... Storage garages t ..._?..,,,,.. ?; ? x x ' -`..?.. ? ? P( P ._._..._._ ; _._ P F X? X Tattoo parlors ;X X `C `X A `X X FX ; I ......_ , ....... ... Wholesaling and distribution operations 3X _? ?_..... _... _ iX ?P ?C ;X ;X I X provided that such operations do not ; ? ; involve the use of: (i) more than two thousand (2,000) square feet of floor area ?for storage of wares to be sold at wholesale or to be distributed, or (ii) any vehicle rated ; 'at more than one and one-half (1'/z) tons, or ; (iii) a total of more than five (5) delivery ; vehicles ; f Wildiife rehabilitation centers ' C ; C a C X x, :X X A . ............ Wind energy conversion systems, ? P _' ? P ? P_ X K ; X; XiX freestanding, except as provided below i i , _ _........ _.... _,..... _ Wind energy conversion systems, `C ; . : _...... E ..... C; C j X ?iX XiX freestanding, in excess of one (1) Wind energy conversion systems, roof- i PiP ; PiP Ip-? P P; P i mounted, except as provided below Wind energy conversion systems, roof- 'C ? C = C' C IS? C? C? C mounted, in excess of one (1) per principal •? j ? ` ?i structure i t e ? E t 955 33 4/1 Qomhrnlia ranFrl+l R?_s 956 s ric? ho R-vi . v? .,.. ...... ......... .,. ? 957 Cor° n'o-o,°f?: 958 , GWGIGGf--?#? 959 w;+h;e B?3A Pembrek 960 , Pg-. 961 , 962 963 GFiteria; fGIIGWiRg 964 (1) - 965 , 966 , 967 . 968 969 970 971 ; and 972 urp 973 . 974 .... 975 976 (d) {Off-site parking facilities.} Off-site parking facilities shall be permitted as 977 follows: 978 (1) 8-3-,43-3A and 8-4C Districts. Off-site parking facilities for any use 979 within the B-3; B-3A or B-4C Districts, shall be permitted on any ggp zoning lot, provided all of the following requirements are met: (1) 981 structures for parking facilities shall conform to the regulations of 982 the district in which located; (2) off-site parking facilities shatl be 983 located within one thousand five hundred (1,500) feet from the use 984 they are intended to serve, but in no case shall any such facility be 985 located opposite Virginia Beach Boulevard and Independence 986 Boulevard unless grade-separated pedestrian access is provided; 987 and (3) 988 , aRd ? 989 a written agreement assuring continued availability of the number of 990 spaces indicated shall be drawn and executed, and a certified copy 991 of such agreement shall be recorded with the clerk of the court. 992 Such agreement shall stipulate that, if such space is not maintained 34 993 994 995 996 997 .... 998 COMMF.N'I' 999 The amendments delete references to the B-3A Pembroke Central Business Core District, as 1000 the district will be supplanted by the new C13C Central 13usiness Core 1)istrict. 1'he amendments 1001 delete "automobile service establishments" as a use, as the term "automobile service sYation" 1002 replaces it throughout Yhe CZO, and make technical corrections regarding car wash facilities. 1003 1004 Sec. 902. Dimensional requirements. 1005 .... 1006 (b) The following chart lists the requirements within n"° R3A p°mhrnLo 1007 oen+r I RicinoooC-er n;t, g-4C Central Business Mixed Use District and B-4K 1008 Historic Kempsville Area Mixed Use District for minimum lot area, width, and yard 1009 spacing for all uses and structures: $-3A 113-413 ; B-4K (1) ?Minimum lot area in square feet: i 1 -8;898 ? 10,000 110,000 (2) 3 Minimum lot width in feet:* 100 ? 100 j ?... _ . .. ..... ............. ___. _ .__.. ? . .. _._.._. ? __ _ i ....._.._._........... .. , (3) ;Minimum setback from a street in feet <g ?0 10 t I .............._ _,._.,.__.._..,?..»......._ .m._.... -._._ .........___......._ ..... ...........__.____•_ _......_?.? .. _..._...... ; ._,......?_. t, -?-?..._ (4) ?Maximum setback from a street in feet. There shall be no maximum ?49 10 ?20 setback from a street for structures where the total floor area ? ? consists of residential use. ; ._........ ... ..... .._ . _ _.._ ........ , . (5)?Minimum side yard setback in feet, unless otherwise identified r9 i 0 10 i ; herein or a greater setback is reyuired by section 903 , s ? _ .. _.. (6) {Minimum rear yard setback in feet, unless a greater setback is =8 1 0 ;0 ! 'required by section 903 ' i ? : . ___ ; (7) !Maximum density per acre of multifamily dwellings in the B-4C and ;N<A 36 118 , ; B-4K Districts. Density shall be determined based on the area of ; ;the entire zoning lot, even if such lot is partially occupied by other i ? ? principal uses or conditional uses. For every 10,000 square feet of I ? 35 or space acceptabie to the pianoi:ig directar substituted, the use or such portion of the use as is deficient in number of parking spaces shall be discontinued. The agreement shall be subject to the approval of the city attorney. 'commercial space in a given development project, an additional ;dwelling unit per acre beyond that allowed by the maximum density , may be built. 1 ? i ? x 1 .,,,,.. _._._. _ ..-__?__?.,....._. _ ?..? ?...__. _... ...,,,.._.._..... ..._...... ?_. ..,._....._.?.__?....._ c ..,.. . . .,,,,,_._ .,,,,...._. _..._..?.... .._.._.......,_....... .._,..W.,.. .. , (8)':Maximum density of hotels and motels ?NA 180 ?N/A i ; 1010 1011 "Where applicable, newly created corner lots must also adhere to section 4.4(c) of the Subdivision 1012 Ordinance, requiring additional lot width on certain corner lots. 1013 1014 Except as otherwise provided herein, setbacks affecting only the first floor of 1015 multistory buildings may be increased by no more than twenty (20) feet in order to allow 1016 the creation of covered passageways within the B-3A; B-4C and 13-4K Districts. In 1017 addition, building setbacks adjacent to roadway intersections may be increased to 1018 provide safe and reasonable line-of-sight clearances. 1019 COMMENT 1020 1'he amendments dclete references to the B-3A Pembroke Central Business Core District, as 1021 the district will be supplanted by the new CI3C Central Business Core llistrict. 1022 1023 - 1 1024 1025 BUSO 1026 * , GE)Fe 1027 : 1028 -, 1029 1030 n?.?Y1i? ?., 1031 fE); +" ;e o..1 F°rhr°cS ;,ve-Wat? 1032 ; and 1033 1034 1035 ontiro do„ok„nmon+ 1036 njfe r°d' A^s°???T h II inGli irlo a dotr+ilorJ pInn nf 1037 1038 buildiRgS, , ? > paFkmRg > 36 1039 , d -.uvh--ott}eF-aRforff?ati 1040 ? i o inihothor th 1041 1042 1043 , 1044 . 1045 1046 COMMENT 1047 The amendments delete references to the B-3A Pembroke Central Business Core District, as 1048 the district will be supplanted by the new CBC Central 13usiness Core llistrict. In addition, the 1049 provisions of'subsections (f), (g) and (h) are also dcleted, as they will be rendcred superfluous by the 1050 adoption of the new Centra113usiness Core llistrict regulations. 1051 1052 Sec. 903. Landscape screening and buffering regulations. 1053 For the B-1 through B-4 Commercial Districts, the following landscape screening 1054 and buffering regulations shall apply: 1055 (a) When a zoning lot within a B-1 or B-1A Business District adjoins a 1056 residential, apartment or hotef district without an irtervening street, alley or body of 1057 water over twenty-five (25) feet in width, a fifteen-foot minimum yard shall be required 1058 along all lot lines adjoining the residential, apartment or hotel district. Category I 1059 landscape screening shall be required within the yard area. No other uses or structures 1060 shall be permitted in such yards. 1061 (b) When a zoning lot within the B-2, B-3, B-3P, B-4, B-4C or B-4K District 1062 adjoins a residential or apartment district without an intervening street, alley or body of 1063 water over twenty-five (25) feet in width, a fifteen-foot minimum yard shall be required 1064 along all lot lines adjoining the residential or apartment district. Category IV landscape 1065 screening shall be required within the yard area. No other uses or structures shall be 1066 permitted in such yards. 1067 (c) When a zoning lot within the B-2, B-3, B-3,4; B-4, B-4C or B-4K District 1068 adjoins an 0-1 Office District without an intervening street, alley or body of water over 1069 twenty-five (25) feet in width, a ten-foot minimum yard shall be required along all lot 1070 lines adjoining the office district. Category I landscape screening shall be required within 1071 the yard area. No other uses or structures shall be permitted in such yards. 1072 1073 37 1074 COMMEN"1' 1075 The amendments delete references Yo the B-3A Pembroke Central 13usiness Core llistrict, as 1076 the district will be supplanted by the new CBC Central Business Core District. 1077 Sec. 904. Height regulations. 1078 (a) The maximum height for all uses and structures within the B-1 1079 Neighborhood Business District and B-1A Limited Community Business District shall be 1080 thirty-five (35) feet. 1081 (b) Where a zoning lot within the B-2 Community Business District, B-3 1082 Central Business District, R.-aA pernqTQl<<e GeRtral--Bus+aess--Gor° ??- 'B-4 Mixed 1083 Use District, B-4C Central Business Mixed Use District or B-4K Historic Kempsville Area 1084 Mixed Use District adjoins the side or rear yard of a zoning lot in a residential or 1085 apartment district without an intervening street or alley over twenty-five (25) feet in width 1086 or a body of water over fifty (50) feet in width, the following maximum height regulations 1087 shall apply on that portion of the commercial zoning lot within one hundred (100) feet of 1088 the adjoining residential or apartment district. In cases where more than one (1) of the 1089 following apply, the most restrictive shall apply. 1090 (1) When adjacent to residential district, the maximum height shall be 1091 thirty-five (35) feet. 1092 (2) When adjacent to A-12 or A-18 Apartment Districts, the maximum 1093 height shall be thirty-five (35) feet. 1094 (3) When adjacent to A-24 Apartment District, the maximum height 1095 shall be forty-five (45) feet. 1096 (4) When adjacent to A-36 Apartment District, the maximum height 1097 shall be one hundred twenty (120) feet. 1098 (c) The maximum height for hotels and motels within the B-4 Mixed Use 1099 District is seventy-five (75) feet. 1100 (d) Except as specified in items (a),(b) and (c) hereinabove, there shall be no 1101 maximum height regulations in the B-2, B-3 and B-4 Districts. `^Io+";n +"° R3° 1102 i , 1103 . In the 1104 B-4C Central Business Mixed Use District, minimum building height shall be thirty-five 1105 (35) feet and the maximum building height shall be two hundred (200) feet. In the B-4K 1106 Historic Kempsville Area Mixed Use District, the minimum building height shall be 1107 twenty-five (25) feet and the maximum building height shall be fifty (50) feet. 38 1108 (e) Notwithstanding the above, no building or other structure shall exceed the 1109 height limit established by section 202(b) regarding air navigation. 1110 1111 COMMENT 11 12 The amendments delete references to the B-3A Pembroke Central Business Core District, as 11 13 the B-3A llistrict will be replaced by the new C13C Central Business Core 1)istrict. 1114 Sec. 905. Sign regulations. 1115 .... 1116 (d) Within the B-4C 1117 Central Business Mixed Use District, signs shall be permitted as follows: 1118 1119 (1) For each foot of occupancy frontage an establishment shall have 1120 no more than sixty one-hundredths (60) square feet of sign area. 1121 No single establishment shall have more than four (4) signs, nor 1122 more than two (2) signs per building facade, and no individual sign 1123 shall exceed sixty (60) square feet in surface area. Any 1124 establishment having less than forty (40) feet of occupancy 1125 frontage may have one (1) sign not exceeding twenty-four (24) 1126 square feet. No such sign shall be allowed above the second story 1127 of any building. 1128 1129 (2) A sign identifying the entrance to upper-floor residential dwelling 1130 units shall be permitted; provided, that no such sign shall exceed 1131 eight (8) square feet of surface area, and that the number of signs 1132 shall be limited to one (1) sign at street level at each principal 1133 entrance. 1134 1135 (2.5) Commercial buildings, including hotels and motels, of less than five 1136 (5) stories in height shall have no more than two (2) building 1137 identification signs, and no sign shall have a surface area 1138 exceeding one hundred fifty (150) square feet. Such signs shall be 1139 mounted on or above the fourth story of the building, but not above 1140 the roofline of such building, and only one (1) sign per building 1141 facade shall be allowed. Additionally, two (2) building identification 1142 signs, not exceeding twenty (20) square feet each, shall be allowed 1143 at street level if the building has a street level entrance. 1144 39 1145 (3) Commercial buildings, including hotels and motels, of five (5) 1146 stories to ten (10) stories shall have no more than two (2) building 1147 identification signs, and no sign shall have a surface area 1148 exceeding two hundred (200) square feet. Such signs shall be 1149 mounted on or above the top one-quarter (1/4) of the building, but 1150 not above the roofline of such building, and only one (1) sign per 1151 building facade shall be allowed. Additionally, two (2) building 1152 identification signs, not exceeding twenty (20) square feet each, 1153 may be allowed at street level, if the building has a street level 1154 entrance. 1155 1156 (3.5) Commercial building, including hotels and motels, of more than ten 1157 (10) stories in height shall have no more than two (2) building 1158 identification signs, and no sign shall have a surface area 1159 exceeding three hundred (300) square feet. All signs shall be 1160 mounted on or above the top one-quarter (1/4) of the building, but 1161 not above the roofline of such building, and only one (1) sign per 1162 building facade shall be allowed. Additionally, two (2) building 1163 identification signs, not exceeding twenty (20) square feet each, 1164 may be allowed at street level, if the building has a street level 1165 entrance. 1166 1167 (3.7) Major Tenant Sign Option. For each foot of building footage, a 1168 major tenant may have a maximum of one and two-tenths (1.2) 1169 square feet of sign area, provided that pedestrian scale features 1170 and amenities such as outdoor cafe seating, planters, kiosk areas, 1171 fountains, display windows or sculptures are provided on the 1172 facade or adjacent thereto. No major tenant shall have a total of 1173 more than four (4) signs, nor more than two (2) signs per building 1174 facade. 1175 1176 (4) All freestanding signs shall be approved by the city council, as 1177 consistent with the general purpose and intent of the design 1178 provisions presented in the July, 1991, Pembroke Strategic Growth 1179 Area 4 Implementation Plan and any applicable design standards 1180 approved by city council. 1181 1182 (5) Signs on building awnings shall not be included in determining the 1183 number of building signs permitted, or in determining permissible 1184 sign area, if they meet the following criteria: 40 1185 1186 1187 1188 1189 1190 1191 1192 1193 1194 1195 1196 1197 1198 1199 1200 1201 1202 1203 1204 1205 1206 1207 1208 1209 1210 1211 1212 1213 1214 1215 1216 1217 a. Such signs are uniform in font, color, size and style; b. Only the name of the establishment appears on the awning; c. There is only one (1) sign per awning; and d. Such are no larger than two (2) square feet. (6) Public or private parking structures and parking garages may have one (1) sign per vehicle entrance and two (2) additional signs. Such signs shall have no more than seventy-five (75) square feet of surface area and shall identify the building on which they are located as a parking structure or parking garage. (7) As used in this section: a. "Occupancy frontage" means the exterior length of that portion of a building occupied exclusively by a single establishment having at least one (1) exterior public access; b. "Building identification sign" means a sign which displays only the name of the building on which it is located; c. "Major tenant" means the space in a building occupied by a single establishment with a building wall height of at least thirty-five (35) feet and with at least one (1) continuous wall containing at least eighty (80) feet of building frontage; and d. "Building frontage" means the exterior length of that portion of a building occupied exclusively by a single establishment. COMMENT 1218 1'he amendmcnt deletes the references to the 13-3A Pembroke Central Business Core 1219 District, as the 13-3A Uistrict will be replaced by the new C13C Central Business Core 1)istrict, 1220 which has its own set of sign regulations. 1221 .... 1222 41 1223 ARTICLE 10. INDUSTRIAL DISTKICT5. 1224 .... 1225 Sec. 1001. Use regulations. 1226 (a) Principal and conditional uses. The following chart lists those uses 1227 permitted within the I-1 and I-2 Industrial Districts. Those uses and structures in the 1228 respective industrial districts shall be permitted as either principal uses indicated by a 1229 "P" or as conditional uses indicated by a"C." Uses and structures indicated by an "X" 1230 shall be prohibited in the respective districts. No uses or structures other than as 1231 specified shall be permitted. 1232 1233 Use ?- 1 1-2 1234 .... 1235 AuteFnet 1236 1237 p- -p- 1238 1239 .... 1240 1241 Car wash facilities, pFevaded . (0) No 1242 1243 1244 1245 adjaGeRt , 1246 1247 1248 i subject 1249 to the provisions of Section 228.1 C X 1250 1251 .... 1252 1253 COMMEN'I' 1254 The amendments delete "aatomobile service establishments" as a use, as the term 1255 "automobile service station" (which remains listed as a conditional use in Industrial Districts) 1256 replaces it throughout the CZO, and make technical corrections regarding car wash facilities. The 1257 amendments have no substantive effect. 1258 42 1259 ARTICLE 18. SPECIAL REGULA'TIUNS IN AER 1NSTALLATIONS COMPATIBLE 1260 USE ZONES (AICUZ). 1261 A. OVERLAY DISTRICT REGULATIONS 1262 .... 1263 Sec. 1803. Applicability. 1264 (a) Area of applicability. The provisions of this Article shall apply to 1265 discretionary development applications for any property located within an Accident 1266 Potential Zone (APZ) or 65-70 dB DNL, 70-75 dB DNL or >75 dB DNL Noise Zone, as 1267 shown on the official zoning map, that have not been approved or denied by the city 1268 council as of the date of adoption of this Article. For purposes of this Article, 1269 discretionary development applications shall include applications for: 1270 1271 (1) Rezonings, including conditional zonings; 1272 1273 (2) Conditional use permits for new uses or structures, or for 1274 alterations or enlargements of existing conditional uses where the 1275 occupant load would increase; 1276 1277 (3) Conversions or enlargements of nonconforming uses or structures, 1278 except where the applicaticn contemplates the construction of a 1279 new building or structure or expansion of an existing use or 1280 structure where the total occupant load would not increase; a-Rd 1281 1282 (4) Street closures where the application contemplates the construction 1283 of a new building or structure or the expansion of a use or structure 1284 where the total occupant load is increased; and 1285 1286 (5) Special exreptions for Alternative Compliance in anv zoning district 1287 listed in Section 102(a)(13) where the special exception allows a 1288 use not otherwise permitted by applicable requlations. 1289 1290 .... 1291 COMMLNT 1292 1293 The amendment adds, as a"discretionaiy development application" subject to the 1294 provisions of the AICUZ Overlay Ordinance, special exceptions for Alternative Compliance in 1295 zoning districts implementing Strategic Growth Area Ylans where the special exception would 43 1296 1297 1298 1299 1300 1301 1302 1303 1304 1305 1306 1307 1308 1309 1310 1311 1312 a11ow a use not otherwise permitted by applicable regulations of a zoning district, such as the Oceanf'ront Kesort District or Central 13usiness Core llistrict, that implements an SGA Plan. Adopted by the City Council of the City of Virginia Beach on the 25th day of February , 2014. APPROVED AS TO CONTENT: Dep n f Planning CA-12464 November 26, 2013 R-5 APPROVED AS TO LEGAL SUFFICIEN Y: . . . City Attorney's Office 1 44 1 AN ORDINANCE TO AMEND THE PEMBROKE 2 STRATEGIC GROWTH AREA 4 IMPLEMENTATION 3 PLAN AND THE POLICY DOCUMENT OF THE 4 COMPREHENSIVE PLAN BY REVISING MAPS OF 5 THE PEMBROKE STRATEGIC GROWTH AREA 6 AND AMENDING DESCRIPTIONS OF THE 7 CENTRAL BUSINESS DISTRICT/CORE AREA AND 8 THE CENTRAL BUSINESS DISTRICT/ 9 WATERFRONT AREA 10 11 WHEREAS, the public necessity, convenience, general welfare and good zoning 12 practice so require; 13 14 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY 15 OF VIRGINIA BEACH, VIRGINIA: 16 17 That the Pembroke Strategic Growth Area 4 Implementation Plan and the Policy 18 Document of the Comprehensive Plan of the City of Virginia Beach are hereby 19 amended and reordained as follows: 20 21 1. The revision of those certain maps delineating the boundaries of the 22 Central Business District/Core and the Central Business District/Waterfront, 23 respectively, appearing in the Pembroke Strategic Growth Area 4 Implementation Plan 24 on Pages 22 (Urban Districts Plan), Page 27 (Central Business District/Core), Page 31 25 (Central Business District/Waterfront) and Page 58 (Central Business District/Core and 26 Central Business District/Waterfront), all as more fully appears in Section 1 of the 27 attached Exhibit A; 28 29 2. The addition of language regarding alternative approaches to form based 30 codes on Page 56 of the Pembroke Strategic Growth Area 4 Implementation Plan, as 31 more fully appears in Section 2 of the attached Exhibit A; 32 33 3. The amendment of the section of the Pembroke Strategic Growth Area 4 34 Implementation Plan entitled "Implementation Recommendations," under the sub- 35 heading entitled "Planning Land-Use Policies" on Page 61 of the Pembroke Strategic 36 Growth Area 4 Implementation Plan, as more fully appears in Section 3 of the Attached 37 Exhibit A; 38 39 4. The deletion of language regarding the redevelopment of Princess Anne 40 High School in the section entitled "Civic Places" on Page 27 of the Pembroke 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Strategic Growth Area 4 Implementation Plan, as more fully appears in Section 4 of the Attached Exhibit A; 5. The revision of the map (Urban Master Plan) on Page 2-23 of the Policy Document of the Comprehensive Plan, as more fully appears in Section 5 of the Attached Exhibit A; and 6. The amendment of the General Recommendations for Pembroke Strategic Growth Area 4 on Page 2-26 of the Policy Document of the Comprehensive Plan, as more fully appears in Section 6 of the Attached Exhibit A. Adopted by the City Council of the City of Virginia Beach on the 25th day of February , 2014. CA12709 January 14, 2014 R-5 APPROVED AS TO LEGAL SUFFICIENC : -U City Attorney's Office 2 APPROVED AS TO CONTENT: Exhibit A Pembroke Strategic Growth Area 4 Implementation Plan Amendments Adopted by Reference as Part of the Comprehensive Plan November 10, 2009 (Pages 22, 27, 31, 56, 57, 58 and 61 Pembroke Strategic Growth Area 4 Implementation Plan: Text to be deleted is shown as 6tF+IEeHhreUqh. Text to be added is underlined.) 1. Page 22 URBAN DISTRICTS PLAN (Revised map) (Delete and replace with revised map) Page 27 CENTRAL BUSINESS DISTRICT//CORE AREA MAP (Delete and replace with revised map) . : -? . g 1?i '?.•? ? ??te t'? ? r ! t 'r 4PeR? " ? ? , t . , . R G ' y ?aer ar! ?,tiY? in'??;4 ifYfU,?l? ?+r,? ?°`??? ?, Q sR (Revised map) ' ? •? ? ' # 1 2 r; `??????'?t. , Is { ??• .tt?'. ; }??a' ?,'?'+' j 1?EA tryi? :? i..? ?r'''§ ? ; .- J VIAGINIABERiHBIVD ? ..o,^/",r • , r?° j"?? ??' •.r??.. ? Y?YWr?f ,. ,,' ,,l ? '? • ., ? ? ' ,?,'" ,. ?' . r ?. .•? ' ?`? ?-° ? R ? w .?`'? : ?_ ?l*t' nxf t ?? 2 Page 31 CENTRAL BUSINESS DISTRICT//WATERFRONT AREA (Revised map) (Delete and replace with revised map) Page 58 FORM BASED CODE CENTRAL BUSINESS DISTRICT//CORE AREA (Delete and replace with revised map) . - ? ?e "?? ?? . . ? ?.?? _?- ' g . ?+r"? ?s,,.??i?r? •' • , ? 1 ?. ?. ? , ? ;r i? g ? ? ¢?* T , ?' . ?' i?+ ?i-A €I {-e i i??'??'? ? ?;?&.: IiY ???? ? 6 ?'? i?,¦ , { ??-,,?+ ! i# Y y ' • l,t (Revised map) '", J . P??? s?ar -+"??? +•9 .? # ?a, r,1 7 . P .'.+.:?:???::; ?'? ,.g? _ :.????? '?•??wy? t 1 „.. ,,. ?. Ic t . . r , • ? ? . , . . - ?. y? ..+-?..?' .% t j ??r? ,` ?<=? ? , r ., 4 Page 58 FORM BASED CODE CENTRAL BUSINESS DISTRICT//WATERFRONT AREA (Delete and replace with revised map) . ... ff IIYI ? I, r ? ??= ? ?; ? *•;+??? r' ? ? 4??`? (Revised map) ? ? .... ? ..{ ,j( £ ` :f i? ? : 4 t - =? . ?• r Yr j y ?? ? -r?t-• -A ; . ?A?. ????• °.?,,?.-?: 5 2. Page 56, second column FORM BASED CODE WHAT ARE FORM BASED DEVELOPMENT CODES? Of the area being regulated. It depicts the areas of the plan where different building form and streetscape standards will apply. Because they can regulate development at the scale of an individual building or lot, Form Based Codes allow a desired developmental pattern to occur in a more organic fashion, gradually allowing the area which it regulates to assume a preferred urban form through the independent development of many small sites within the plan by multiple property owners, Because of this, it is less likely that large land areas will need to be acquired in order to achieve the overall goal. Rather, the Form Based Code provides incentives for property owners to develop their sites in a way that supports the vision of the plan. As a result, areas regulated by Form Based Codes often contain a diversity of architecture, materials, uses, and ownership. ALTERNATIVE APPROACHES TO FORM BASED CODES While the use of form based codes is an effective tool in creatin4 a desirable urban form, the inclusion of a form based code in this Plan is not intended to imqlv that there are no other tvpes of zoning requlation that foster, as stated in the Plan's Vision Statement: a central urban core with a vertical mix of urban uses, qreat streets mobilitv and transit alternatives, urban aatherina places, environmental and neiqhborhood protection, "Qreen" buildinqs and infrastructure opportunities providinq a varietv of civic, commercial, artistic and ethnicallv diverse areas. Most importantlv the reaulations qovernina development in the Pembroke SGA should be flexible in nature so as to ensure that develoqment meets the Citv's vision for the area while at the same time encouraqinq creativitv in desiqn As an alternative to a form based approach, an effective wav of accomqlishinq this obiective could be throucth the use of performance-based zoninq in which a proqosed development would be allowed to deviate from the specific development standards prescribed in the ordinance bv providinp a different form of development or an amenitv that serves the same or a closelv- related purpose or purposes as the arescribed development standard. For example, rather than strictlv conformina to ordinance provisions reauirina buildinq facades to be located close to the street so as to activate the street frontaqe bv providinp a walkable pedestrian-oriented streetscape, a development could include features such as open-air cafes qlazas or qublic art that similarlv activate the street frontacae and provide an interestinq pedestrian-oriented streetscape. In liaht of the foreqoina considerations it should be understood that the form based code appearinq below is not intended to be the exclusive means of re4ulatinq the form of develooment in the Pembroke SGA nor is form-based zoning necessarilv the most effective approach to codinp the various districts within the SGA in everv case. The form based code shown on the followinq pa4es does, however, illustrate what such a code miqht look like if chosen as the zoning ordinance for the Pembroke SGA. 6 Core High Nigh 0 to Minimal Generaf Medkon Medium Minimal Edge taw Lnw Typical Prourtre None Nane NlA Speeiel Existing Existing Existing 3. Page 61 IMPLEMENTATION RECOMMENDATIONS PLANNING LAND-USE POLICIES ? Develop a form based code or other code establishing a regulatory framework for each district that is consistent with the goals and objectives of this Plan. 4. Page 27 CENTRAL BUSINESS DISTRICT//CORE AREA CIVIC PLACES 7 Comprehensive Plan Policy Document Revisions Chapter 2: Urban Area Strategic Growth Area 4- Pembroke (Pages 2-23 and 2-26, Policy Document: Text to be deleted is shown as s#+I(ethFeugh. Text to be added is underlined.) STRATEGIC GROWTH AREA 4 PEMBROKE 5. Page 2-23 URBAN MASTER PLAN DISTRICTS (Revised map) 8 (Delete and replace with revised map) 6. Page 2-26 GENERAL RECOMMENDATIONS FOR PEMBROKE STRATEGIC GROWTH AREA 4 ? Tailor a Form Based r h r Code esrablishing a regulatory framework for each district that is consistent with the goals and objectives of this Plan. 1 AN ORDINANCE TO AMEND AND 2 REORDAIN SECTIONS 5.5, 5.6.13 AND 5.14 3 OF THE SITE PLAN ORDINANCE, 4 PERTAINING TO EXCEPTIONS IN 5 DISTRICTS INTENDED TO IMPLEMENT 6 STRATEGIC GROWTH AREA PLANS 7 8 WHEREAS, the public necessity, convenience, general welfare and good zoning 9 practice so require; 10 11 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 12 OF VIRGINIA BEACH, VIRGINIA: 13 14 That Sections 5.5, 5.613 and 5.14 of the Site Plan Ordinance are hereby 15 amended and reordained, to read as follows: 16 17 Sec. 5. Minimum standards and specifications required. 18 . ... 19 20 5.5. Except within ' zoninq districts intended 21 to implement Strateqic Growth Area Plans, transitional buffers shall be 22 placed between incompatible land uses, and landscaping shall be required 23 within and at the perimeter of vehicular use areas, in accordance with the 24 standards of the department of planning. The type and exact location of 25 these buffers shall be as determined by the zoning ordinance [3], or under 26 the provisions of a use permit issued pursuant thereto, or by any other 27 ordinance of the City of Virginia Beach. 28 .... 29 30 5.6.B. Except within the nQ (lnoanfrnnf Qos„r+ n,6+r;G± zoninq districts intended 31 to implement Strateqic Growth Area Plans, a percentage of the lot area 32 within all multifamily developments shall be devoted to recreation and/or 33 usable open space, as prescribed by the zoning ordinance. [4] 34 35 .... 36 37 5.14. Except within i zoninq districts intended 38 to implement Strategic Growth Area Plans, in any condominium 39 development consisting of single family, duplex or attached dwellings, the 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 developer shall provide open space at the following rates according to the zoning category in which the project lies: Minimum Lot Size of Zoning Category Less than 5,000 sq. ft. 5,000-7,499 sq. ft. 7,500-9,999 sq. ft. 10,000-14,999 sq. ft. 15,000-19,999 sq. ft. 20,000-29,999 sq. ft. 30,000-39,999 sq. ft. 40,000 sq. ft. or greater % of Total Land Required for Open Space 15% 12% 10% 8% 7% 6% 5% 3% If more than one rate applies to a project, then that rate which results in the lesser amount of open space shall be the governing rate. Means of provision and other regulations pertaining to open space shall be as provided in section 4.5 of the subdivision ordinance. COMMENT The amendments specify that the amended subsections do not apply in zoning districts, such as the Central Business Core District, that are intended to implement Strategic Growth Area Plans. Ado ted by the Council of the City of Virginia Beach, Virginia, on the 25th day Febru?ry of , 2014. APPROVED AS TO CONTENT: Plan i epartment CA12727 R-2 January 14, 2014 APPROVED AS TO LEGAL SUFFI ENCY: City Attorney's Office 2 1 AN ORDINANCE ESTABLISHING TRANSITION RULES 2 FOR THE REVIEW OF SITE PLANS, SUBDIVISION PLATS 3 AND OTHER PLANS OF DEVELOPMENT FOR 4 PROPERTY IN THE CBC CENTRAL BUSINESS CORE 5 DISTRICT 6 7 8 WHEREAS, the public necessity, convenience, general welfare and good zoning 9 practice so require; 10 11 WHEREAS, the City Council has created the CBC Central Business Core District 12 and adopted new zoning, subdivision and site plan regulations applicable to property 13 within the District; and 14 15 WHEREAS, the regulations pertaining to development in the CBC Central 16 Business Core District differ significantly from those previously applicable to property 17 within the territory encompassed by the District; and 18 19 WHEREAS, it is the sense of the City Council that special transition rules should 20 be adopted to govern certain development applications that were not approved by the 21 City prior to the effective date of the Ordinance; 22 23 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 24 VIRGINIA BEACH, VIRGINIA: 25 26 1. That the following rules shall apply to the review of site plans, subdivision 27 plats and other plans of development for property located within the CBC Central 28 Business Core District: 29 30 (a) Any subdivision plat, site plan or other plan of development pertaining to 31 property within the territory encompassed by the CBC Central Business 32 Core District that has been accepted for review, but has not been 33 approved by the City on or before the close of business on the date of 34 adoption of the ordinance establishing the CBC Central Business Core 35 District, shall not be subject to the regulations pertaining to the CBC 36 Central Business Core District, but shall, for a period of one hundred 37 eighty (180) days from the aforesaid date, be subject to the ordinances 38 and regulations of the City applicable to such property in effect on the date 39 such plat, site plan or other plan of development was accepted for review 40 by the City. 41 42 (b) If such site plan, subdivision plat or other plan of development is not 43 approved within the aforesaid 180-day period, all further development that 44 is the subject of such site plan, subdivision plat or other plan of 45 development shall be subject to the subject to the regulations pertaining to 46 the CBC Central Business Core District, as well as to all other applicable 47 laws, ordinances, regulations and standards. 48 49 BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA 50 BEACH, VIRGINIA: 51 52 That nothing in this ordinance shall be construed to affect any vested rights 53 which existed as of the effective date of the Ordinance. 54 55 Adopted by the Council of the City of Virginia Beach, Virginia, on the 25thday 56 of February , 2014. APPROVED AS TO CONTENT Pla ni g epartment APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's ffice CA-12465 R-2 January 14, 2014 2 1 AN ORDINANCE TO AMEND 33-114.3 OF THE CITY 2 CODE, PERTAINING TO ENCROACHMENTS 3 ALLOWED PURSUANT TO THE REGULATIONS OF 4 A ZONING DISTRICT 5 6 Section Amended: City Code Section 33-114.3 7 8 9 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, 10 VIRGINIA: 11 12 That Section 33-114.3 of the City Code is hereby amended and reordained to read as 13 follows: 14 15 16 CHAPTER 33. STREETS AND SIDEWALKS 17 18 .... 19 20 ARTICLE VI. ENCROACHMENTS INTO PUBLIC STREETS AND OTHER PUBLIC 21 WAYS, PLACES OR PROPERTY 22 23 .... 24 25 26 Sec. 33-114.3. Administrative approval of encroachments by outdoor cafes, etc., 27 within certain zoning districts. 28 29 Notwithstanding the provisions of section 33-114.1 of this Code: 30 31 (a) The city manager or his designee may, and is hereby vested with the authority to, 32 approve #he encroachment, upon or over any public street or sidewalk in th..-?-o° °embFE)ke 33 Qen+r,l RuainoacGore giStFiG any zoninq district intended to implement a Strateqic Growth 34 Area Plan or the B-4C Central Business Mixed Use District, by outdoor cafes or portions 35 thereof or other storefront uses, provided that such encroachment substantially conforms to 36 applicable desiqn guidelines for the district in which it is located. °* leac+ o,,,h+ (Q) foo+ „f 37 38 6UGh . Such encroachments shall sen#erm also comply with all applicable 39 zoning and building codes, regulations and standards; and. 40 (b) Encroaching signs and other uses or structures, other than encroachments 41 authorized pursuant to subsection (a), expressly allowed pursuant to the prov+s+ens requlations 42 of anv zoninq district in which encroachinq 43 siqns or other structures are allowed shall be permitted, without payment of the fee prescribed 44 in Section 33-113 of this Code, in accordance with the rorruiromcnts applicable #a requlations 45 of such eRGraaGhm district. The failure to comply with any provision 46 applicable to such an encroachments shall be cause for the removal thereof in accordance 47 with Section 33-114.1 of this Code. 48 49 (c) Notwithstanding the provisions of subsection (a), open-air cafes on public 50 property in the OR Oceanfront Resort District or the RT-1 or RT-3 Resort Tourist Districts shall 51 require the approval of the Citv Council pursuant to franchise and shalf be subject to the 52 provisions of the Resort Open Air Cafe Guidelines. 53 54 55 COMMENT 56 57 The amendments to subsection (a) expand the provisions of the subsection to outdoor cafes and 58 other storefront uses in any zoning district that implements an SGA Plan. The current ordinance is limited 59 in its application to the B-3A Pembroke Central Business Core District and the B-4C Central Business 60 Mixed Use District. The amendments also add a requirement that such outdoor cafes and other storefront 61 uses must substantially conform to applicable design guidelines for the district in which they are located. 62 63 The amendments to Subsection (b) provide that encroaching signs and other uses or structures that 64 are expressly authorized by the regulations of a zoning district intended to implement a Strategic Growth 65 Area Plan or the B-4C Central Business Mixed Use District are exempt from the prohibition of 66 encroaching structures contained in Section 33-114.1, so long as they comply with the applicable 67 requirements of the zoning district in which they are located. Such encroachments are not subject to the 68 $250.00 fee applicable to other encroachments. 69 70 Subsection (c) makes an exception for Resort Open-Air Cafes, which remain subject the traditional 71 franchise approval process. 72 73 25th 74 Adopted by the City Council of the City of Virginia Beach on the day of 75 February 2014. , 76 77 78 CA-12705 79 November 15, 2013 80 R-4 81 2 82 83 84 85 86 87 88 APPROVED AS TO LEGAL SUFFICIENCY: APPROVED AS TO CONTENT: .?' )C&W pRaul. Depa t Planning City Attorney's Office -84- Item -V-L.llh PLANNING ITEM #63561 Upon motion by Vice Mayor Jones, seconded by Councilman Moss, City Council APPROVED, BY CONSENT, Application of the City of Virginia Beach to: h. AMEND Section 401 re farm stands in Agricultural DistYicts Voting: 11-0 Council Members Poting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Yoting Nay: None Council Members Absent: None February 25, 2014 1 AN ORDINANCE TO AMEND SECTION 401 OF THE 2 CITY ZONING ORDINANCE, PERTAINING TO 3 FARM STANDS IN AGRICULTURAL DISTRICTS 4 5 Section Amended: City Zoning Ordinance Section 401 6 7 WHEREAS, the public necessity, convenience, general welfare, and good zoning 8 practice so require; 9 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 10 BEACH, VIRGINIA: 11 That Section 401 of the City Zoning Ordinance, pertaining to farm stands in 12 Agricultural Districts, is hereby amended, to read as follows: 13 Sec. 401. Use regulations. 14 (a) Principal and conditional uses. The following chart lists those uses 15 permitted within the AG-1 and AG-2 Agricultural Districts. Those uses and structures in 16 the respective agricultural districts shall be permitted as either principal uses indicated 17 by a"P" or as conditional uses indicated by a"C." Uses and structures indicated by an 18 "X" shall be prohibited in the respective districts. No uses or structures other than as 19 specified shall be permitted. 20 21 Use AG-1 A G-2 22 .... 23 Farm stands in excess of 2,500 24 square feet in area, exclusive 25 of rest rooms and hand-washinq 26 facilities, subiect to the provisions 27 of Sections 401(b)(1)(ii) throuch 28 401(b)(1)(v) C C 29 30 .... 31 COMMENT 32 The amendments add farm stands in excess of 2,500 square feet in area, exclusive of rest 33 rooms and hand-washing facilities, as a conditional use in the AG-1 and AG-2 Agricultural 34 Districts. Such farm stands are subject to the same provisions, other than area limitations, as 35 smaller farm stands allowed as accessory uses under subsection (b)(1). 36 (b) Accessory uses and structures. Uses and structures which are customarily 37 accessory and clearly incidental and subordinate to principal uses and structures, 38 including but not limited to: 39 (1) In connection with agricultural uses, no more than one (1) roadside 40 farm stand for the sale of agricultural products and related items as 41 set forth below, provided that: 42 (i) No such stand shall , 43 foo+ ;,, flnnr Mro-. „Go,... ? f?r ro+a,l sa!°s an,? ,?c_?r?'-.?„, have a .>. ?. ?.....? ..,,,. ... ?. .... ...,. .. .? 44 total floor area in excess of two thousand, five hundred 45 (2,500) square feet, excluding rest rooms and hand washinq 46 facilities, or be greater than ten (10) feet in height as 47 measured from ground level to eaves; 48 (ii) No stand shall be erected within fifty (50) feet of the property 49 line fronting on any street; 50 (iii) The operator of the stand must be the owner or operator of 51 the agricultural property on which the stand is located; 52 (iv) A substantial portion of the items sold from the stand shall 53 have been grown, made or produced locally; 54 (v) Items sold shall be limited to farm produce, locally-harvested 55 seafood, ornamental plants, flowers, hanging baskets, hand- 56 crafted items, T-shirts displayinq exclusively the name of the 57 farm stand or other identifying information concerninq the 58 owner or operator of the farm stand, vegetable plants, herbs, 59 honey, maple syrup, jams, jellies, bottled water, locally- 60 produced juices and cider, locally-produced milk and other 61 dairv products, relishes, pottery, locally-produced baked 62 goods, locally-produced egqs, and similar items. Items 63 which shall not be sold include, without limitation, tobacco 64 products, alcoholic beverages, clothing, except as expressly 65 allowed, bottled or canned beverages, except as expressly 66 allowed, pet and animal feed1 and repaGkag relabeled 67 goods. 68 .... 69 COMMENT 70 The amendment to subdivision (b)(1) allows retail sales and display areas at farm stands 71 that are permitted as accessory uses to occupy a greater area than the current ordinance, which 2 72 limits such areas to 1,000 square feet, so long as the total area of the farm stand, other than that of 73 rest rooms and hand-washing facilities, does not exceed 2,500 square feet. 74 The amendments to subdivision (b)(5) allow additional items to be sold at farm stands. 75 Those items include: (1) T-shirts displaying exclusively the name of the farm stand or other 76 identifying information concerning the owner or operator of the farm stand; (2) bottled water; (3) 77 locally-produced eggs, and (4) locally-produced milk and other dairy products. The amendments 78 also require that baked goods be locally produced and change the prohibition against selling 79 repackaged goods to one prohibiting the sale of relabeled goods. 80 (c) Agriculturally-related educational activities and recreational and 81 amusement activities such as farm tours, petting, feeding and viewing of farm animals, 82 hayrides, crop mazes, animal walks, horse and pony rides, and similar activities shall be 83 allowed under the following conditions: 84 (1) Such activities shall be subordinate to, and conducted in 85 conjunction with, an ongoing bona fide agricultural or silvicultural 86 operation; 87 (2) Vehicular parking shall not be allowed on public streets, or within 88 one hundred (100) feet of any residence, except a residence 89 located on the site of the activity; 90 (3) Such activities shall be conducted only between the hours of &L99 91 7:00 a.m. and sunset; and 92 (4) Signs shall be nonilluminated and limited to one sign not exceeding 93 sixteen (16) square feet in area. 94 In the event any provision of this subsection conflicts or is otherwise inconsistent 95 with any other provision of this ordinance, the provisions of this subsection shall control; 96 provided, however, that no use otherwise permitted hereunder which constitutes, or 97 requires the excavation of, a borrow pit, as defined in section 111, shall be allowed 98 except by conditional use permit. 99 (d) Special restrictions in Accident Potential Zone 1(APZ-1). No use or 100 structure shall be permitted on any property located within Accident Potential Zone 1 101 (APZ-1) unless such use is designated as compatible in APZ-1 in Table 2("Air 102 Installations Compatible Use Zones Land Use Compatibility in Accident Potential 103 Zones") of section 1804; provided, however, that any use or structure not designated as 104 compatible shall be permitted as a replacement of the same use or structure if the 105 replacement use or structure is of equal or lesser density or intensity than the original 106 use or structure. 107 3 108 COMMENT 109 The amendments allow agricultu rally- related educational activities as permitted uses in 110 Agricultural Districts, subject to the same limitations as agricultu rally- related amusement and 111 recreational activities such as farm tours, petting zoos, etc. 112 Adopted by the City Council of the City of Virginia Beach on the 25th day Of February , 2014. APPROVED AS TO CONTENT: ?- PlanninN Department APPROVED AS TO LEGAL SUFFICIENCY: / ?? • ? City A torney's Office CA-12801 R-4 December 20, 2013 4 -85- ITEM V-M APPOINTMENTS ITEM #63562 BY CONSENSIIS, City Council RESCHEDULED the following APPOINTMENTS: GREEN RIBBON COMMITTEE PERSONNEL BOARD PROCESS IMPROVEMENT STEERING COMMITTEE VIRGWIA BEACH COMMUNITY DE VEL OPMENT CORPORATION (VBCDC) 2040 VISION TO ACTION COMMUNITY COALITION COMMISSION February 25, 2014 -86- ITEM V-M APPOINTMENTS ITEM #63563 Upon NOMINATION by Vice Mayor Jones, Ciry Council APPOINTED: KAREN HILL Three Year Term 0510112014 - 0413012017 A UDIT COMMITTEE Yoting.• 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Yoting Nay: None Council Members Absent: None February 25, 2014 -87- ITEM V-M APPOINTMENTS ITEM #63564 Upon NOMINATION by Vice Mayor Jones, Ciry Council APPOINTED: KATHERINE YESTER Unexpired Term thru 1213112015 HISTORIC PRESERVATION COMMISSION Voting: 11-0 Council Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None February 25, 2014 -88- ITEM V-M APPOINTMENTS ITEM #63565 Upon NOMINATION by Vice Mayor Jones, City Council APPOINTED: GREGORY MEDINA Unexpired Term thru 0313112016 HUMAN RIGHTS COMMISSION Yoting: 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 -89- ITEM V-M APPOINTMENTS ITEM #63566 Upon NOMINATION by Vice Mayor Jones, Ciry Council APPOINTED: WILLIAM HEARST Unexpired Term thru 0813112015 INVESTIGATIVE REVIEW PANEL Voting: 11-0 Council Members Yoting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None February 25, 2014 -90- ITEM V-M APPOINTMENTS ITEM #63567 Upon NOMINATION by Vice Mayor Jones, Ciry Council APPOINTED: JOHN GEORGHIOU Unexpired Term thYU 0913012016 WORKFORCE HOUSING ADVISORY COMMITTEE Yoting: 11-0 Cozincil Members Voting Aye: Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, Brad Martin, John D. Moss, Amelia N. Ross- Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent.• None February 25, 2014 -91- Item -V-P ADJOURNMENT ITEM #63568 Mayor William D. Sessoms, Jr., DECLARED the City Council MeetingADJOURNED at 7:54 P.M. Amanda Finley-Barnes, CMC Chief Deputy Ciry Clerk Hodges raser, MMC 4ute City Clerk City of Virginia Beach Vif ginia William D. Sessoms, Jr. Mayor February 25, 2014