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JUNE 2, 2015 MINUTES 1 CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" CITY MAYOR WILLIAM NCIL GIN M D.SESSOMS,JR.,At-Large EAC�'L VICE MAYOR LOUIS R.JONES,Bayside-District 4 0� I M.BENJAMIN DAVENPORT,At Large s. �� ROBERT M.DYER,Centerville-District I U , ,1 BARBARA M.HENLEY,Princess Anne-District 7 SHANNON DS KANE,Rose Hall-District 3 JOHN D.MOSS,At Large 0.- `• a' AMELIA ROSS-HAMMOND,Kempsville-District 2 soF , o„s e JOHN E.UHRIN,Beach-District 6 aux I"p ROSEMARY WILSON,At-Large JAMES L. WOOD,Lvnnhaven-District 5 CITY HALL BUILDING CITY COUNCIL APPOINTEES 2401 COURTHOUSE DRIVE CITY MANAGER-JAMES K SPORE VIRGINIA BEACH, VIRGINIA 23456-9005 CITYATTORNEY-MARK D.STILES PHONE:(757)385-4303 CITY ASSESSOR-JERALD D.BANAGAN FAX(757)385-5669 CITY AUDITOR-LYNDONS.REMIAS CITY COUNCIL AGENDA E-MAIL:Ctycncl@vbgov.com CITY CLERK-RUTH HODGES FRASER,MMC 2 June 2015 MAYOR WILLIAM D. SESSOMS,JR. PRESIDING I. CITY MANAGER'S BRIEFING - Conference Room- 4 :00 PM 1. DIX CREEK NEIGHBORHOOD SSD Phillip Roehrs, Public Works II. CITY COUNCIL LIAISON REPORTS III. CITY COUNCIL COMMENTS IV. CITY COUNCIL AGENDA REVIEW V. INFORMAL SESSION - Conference Room - 4:30 PM A. CALL TO ORDER—Mayor William D. Sessoms, Jr. B. ROLL CALL • C. RECESS TO CLOSED SESSION VI. FORMAL SESSION - City Council Chamber- 6:00 PM A. CALL TO ORDER—Mayor William D. Sessoms, Jr. B. INVOCATION: Reverend Tommy Taylor Pastor- Retired C. PLEDGE OF ALLEGIANCE D. ROLL CALL E. CERTIFICATION OF CLOSED SESSION F. MINUTES May 19, 2015 G. FORMAL SESSION AGENDA 1. CONSENT AGENDA H. MAYOR'S PRESENTATIONS 1. RESOLUTION —Senator Jeffrey McWaters Day Senator Jeffrey and Mrs. McWaters I. ORDINANCES/RESOLUTIONS 1. Resolution to REQUEST assistance of the Virginia Beach Development Authority (VBDA) re the sale of Public Facility Revenue Bonds, Series 2015A in the maximum amount of$52-Million and Refunding Revenue Bonds, Series 2015B in the amount of$45-Million 2. Resolution to ENDORSE the Deferred Compensation Investment Policy as approved by the Deferred Compensation Board 3. Resolution to GRANT permits re Emergency Medical Services: a. American Lifeline Medical Transport, Inc b. American Medical Response Mid-Atlantic, Inc. c. Cardinal Ambulance Services, Inc. d. Chidren's Hospital of the King's Daughters e. Eagle Medical Transports, LLC f. Emergency Medical Response LLC g. Medical Transport, LLC h. Mid-Atlantic Regional Ambulance, Inc. i. Nightingale Air Ambulance j. Reliance Medical Transport k. Robbie's Ambulance Service, Inc. 1. Special Event Providers of Emergency Medicine m. Swift Medical Transport n. Tidewater Medical Transport, LLC 4. Ordinance to EXECUTE a Design Agreement re Lynnhaven River Basin Ecosystem Restoration 5. Ordinances to ACCEPT and APPROPRIATE: a. $174,457 in Insurance Recovery Revenue re "IT Service Continuity" b. $ 50,000 from the Virginia Department of Fire Programs re training equipment J. PLANNING 1. JEFFREY A. and SUZANNE BREIT for a change in a Non-Conforming Use re structure enlargement at 608 Linkhorn Drive DISTRICT 6—BEACH RECOMMENDATION: APPROVAL 2. THOMAS R. and JOAN G. ECKERT for a Conditional Change of Zoning from R-7.5 Residential to Conditional PD-H2, Planned Development, R-5D Residential and Conditional B- 1A Business re office and residential use at 4444 Shore Drive (Deferred May 5, 2015) DISTRICT 4—BAYSIDE RECOMMENDATION: APPROVAL 3. Ordinance to AMEND Sections 4.3, 4.9, 5.1 and 6.1 of the Floodplain Ordinance re Recreational Resort Communities RECOMMENDATION: APPROVAL 4. Ordinances to GRANT extensions for satisfying conditions of Street Closures granted June 17, 2014: a. Former Oakmears Crescent now part of relocated Princess Anne Road • b. Unimproved right-of-way of Oakmears Crescent DISTRICT 2 - KEMPSVILLE RECOMMENDATION: APPROVAL ii K. APPOINTMENTS ARTS and HUMANITIES COMMISSION BAYFRONT ADVISORY COMMISSION BEACHES and WATERWAYS ADVISORY COMMISSION CLEAN COMMUNITY COMMISSION COMMUNITY SERVICES BOARD—CSB PERSONNEL BOARD PROCESS IMPROVEMENT STEERING COMMITTEE PUBLIC LIBRARY BOARD TIDEWATER COMMUNITY COLLEGE BOARD TOWING ADVISORY BOARD L. UNFINISHED BUSINESS M. NEW BUSINESS N. ADJOURNMENT PUBLIC COMMENT Non-Agenda Items Each Speaker will be allowed 3 minutes and each subject is limited to 3 Speakers ********************************** ******************************** If you are physically disabled or visually impaired and need assistance at this meeting, please call the CITY CLERK'S OFFICE at 385-4303 ******************************* 6/2/15-ST III -1- L:`+ tro4,',t, Y , ,f4,-4'^0hd _„ %1(r - ,M1&:::. VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia June 2, 2015 Mayor William D. Sessoms, Jr., called to order City Council's Briefing, in the City Council Conference Room, Tuesday, June 2, 2015, at 4:00 P.M. Council Members Present: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., Rosemary Wilson, James L. Wood and John E. Uhrin Council Members Absent: None June 2, 2015 III -2- CITY MANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 4:00 P.M. Mayor Sessoms welcomed Phillip Roehrs, Public Works. Mr. Roehrs expressed his appreciation to City Council for their continued support on these projects: Neighbor 00 h.ar>rei City Council Briefing roenaging Creating a Neighborhood SSD For: Dix cree ' ,�� Below is an overview of the City's Neighborhood Channel Dredging Program: Neighborhood Dredging Vghbirginia Beach Program Individual neiorhood SSD Projects specific scopes - standard frequency(3 cycles,iG years) Includes Cit -funded Spur Channels{early appropriations ,allow for Y dredging in ear zj • A' Those who receive'tl benefithelp Pay for the project-Cost sharing i s) City net e � formulation,fu ng, Petml e z ,(a b p v navigationt June 2, 2015 III -3- CITY MANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 (Continued) These projects have three (3) dredging cycles: however, dredging does not begin for approximately two (2)years after approval: &ghbor god channel Lr g ng Dredging Cycles Initial dredging:2 years after SSD adaption •Projected cycle: years Ana cycle anticipated0 obi. _ I l vola xile 3rd CYCe r dat e � �x % y4+i� 'm tit r,Id�i�N'"�� .G '� " v y7!»I�u i glng iiir Dredgingii 0 °ti'� Po§ : : ,ISP S� �� :b� 6 �.u1 �: ka .� ami AI =!rv'y 'Sn �I ��x @ S III 5 y^RA�. r � *' y�y a.�' .' - 7 albs x Below are the project parameters: gig r Chan e:l ,Dredging Project Parameters Neighborhood channel funded by SSD � C, 5 : •city cost sham's by funding spur channel Individual funding of turn basins y managementof project o i�I n s n :mai * r EXda '^' ' '"; {, a C `>':,,' r 7)"fir art June 2, 2015 F -4- CITY MANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 (Continued) Below is the project format: Neighbor-hood channel Dredging Project Format Mechanical Dredging ffi Option for a Dredged Material Transfer Station within Dix Creek,alternative is Crab Creek Municipal Wham`, Deposition Dredged Material Manauement Area.(DMM1k.) §4a The first seven (7) listed have Ordinances adopted by City Council, the eighth one listed is in the petition phase, 9 through 24 have shown interest in the program and the last four (4)failed to meet the criteria, except for Baycliff and they withdrew. NeigilbOrhoOdS111 Play 1lttie Neck�Arek _.:_. Dix Creek r �. : } . Buchanan Creek,West ,£ RarvilleCreek West idehdan Cove PentbroLeManor Ce 4r L'Ine y'` ner Haven thr � tom. y lr� ^g" fmzi r ie�lR�6x ' < e xd , bio � g P p v� i� � � a �'S June 2, 2015 111 -5- CITY MANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 (Continued) Below is a map of the SSD Projects: Neighborhood SSD Program Status(4/23/2015) DREDrNSFER AITO I BAYVI LLE CREEK }R�� I CRF 6[I � 'BNU�BATI ril" `°A x Y Tfes„ ® yRDERHATENI WIT OUCK..�_"'--} IHEBOEN COVE WITCHDUCK j Cove � Ic oa��' OLD DONATION,r`� OIM11R0 E I'mE CREEK covf HAYFNCOVE f _ ! VROPOSED IODTCOVE I ' „o,,,„„" D Eer ETRANSFFR fREP.K WECr LYNMIwV¢N STATION F PE BROKE� ACRES ! / Tc31.- 1 FN AR4w.dwrr: \\ WHDEHURST1"--5"""ik � Legend DMMA Y THALIA TRANSFER. _.._.,SD Ordiiuncc 1 111Iished STATION ��.Yeririon Phase �RBOORPOR T Interest Phaee �� --Ao%Imeiat Nut Achieved Uislusal Areall'ramf rSration - This project has one hundred forty-five (145)potential participants: Neighborhood a1 el,,Dredging Dix Creek - > • 145 Potential Participants r.�► • SSD Channel Length "r�d a•° 19,92o ft 3.8miles June 2, 2015 -6- CITY 6-CI T Y MANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 (Continued) Neighbor-hoodC art el Dredging. Life Cycle Estimated Costs City Portion Cycle Volume Cost 5,5oo CY $263,000 2 3r CY 600 $228000 $228 000 1.2,2tio CY n d9�r ` ' a ei r c Channei Dredging Life Cycle Estimated Costs SSD Portion Cycle Volume Cost i 70,000 CY $3,5o9,000 2 49,000 CY $3,078,000 3 .33z ; 3,,092,000 79 0 (*includes ua}« 5%cost escalation,fsaccess Wbasin "design, esign� ! i navigation "S` June 2, 2015 -7- CITY MANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 (Continued) Neighborhood Channel D ire Life Cycle Estimated Costs Individual Access Basin Portion Cycle volume onstri.letion Design Total Cost (CY) ., _ M1Cost Cost 1 36:300 h $1,240,00° $248,°°° $1 ,000 2 , i$1,230,000 + 6, $1,476,000 "r �18 200 ' 0" $248X9.00 81,488,000 3 , ,488 0 IFS d$742,000 , • < .Iaa Neighborhood cha.nilelr� Jnr Dix Creek Appropriations Schedule Cycle Year Design Construction 51,429,000 2 $3,573,000 2 8 $1,296, 9 $3,2400 ,°.¢ k a e 3 ''� ..$4,027,orhoOd ..*Cit'3'.5P4r June 2, 2015 III -8- C/- 8- CITYMANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 (Continued) The project includes one hundred forty-five (145) properties and will result in a 50.2 Cent per $100 increase: Neigrho hakpe.i. , e erg Dix Creek SSD FYi6 Data Total SSD assessed ue , 06,go©' Properties in the neighborhood district; l 5 Each penny surcharge raises$12,507 l year Tota]SSI neigh bor�l oodchannel.dr l cos 000 { chan� transfer station) '-� � �a � iii G .:. ,... .. �� y : a. fat � �� • �^ii�u�fir' �,� � c �'F',�,e r �a�i�.uj , ' 1� � ��.�� ,}FH Below are the Staff recommendations: ei r Staff Recommendations Approve'staff to continue working with Dix Creek Reline dredging specifics-quantities,costs and participants Determine extent of`potential mitigation V date llin reach 8o% emsblice,7.t.4.„..4..tlei.o � t :1 1 n ga, . , � �.� kt dxw � �ifi� "? June 2, 2015 -9- CITY MANAGER'S BRIEFING DIX CREEK NEIGHBORHOOD SSD ITEM#64901 (Continued) cit DiSCUSCioll Mayor Sessoms thanked Mr. Roehrs and the City Staff for their work on this project. June 2, 2015 111 -10- CITY COUNCIL LIAISON REPORTS ITEM#64902 4:11 P.M Council Lady Ross-Hammond attended the recent Human Services Foster Care Provider Appreciation Banquet and was impressed with the number in attendance. June 2, 2015 -11- CITY COUNCIL LIAISON REPORTS ITEM#64903 Council Lady Ross-Hammond expressed her appreciation to Dollar General Literacy Foundation for the recent$3,000 donation to help beat the "Summer Slide". June 2, 2015 -12- CITY COUNCIL LIAISON REPORTS ITEM#64904 Mayor Sessoms attended last night's Mayor's Youth Leadership in Action Recognition Ceremony and expressed his appreciation to everyone that makes this group a success. He spoke of his amazement for the wonderful things these young people are doing and felt privileged to present the awards. Mayor Sessoms advised one particular young lady has received$140,000 in scholarships. June 2, 2015 -13- CITY COUNCIL COMMENTS ITEM#64905 4:13 P.M. Councilman Moss advised in light of the upcoming Bond Sale, he took the Bond Perspectives from November 15, 2014 and compared it with the latest Bond Perspectives for financial data regarding household incomes. He wanted to share a few "high points". On March 31, 2014, the average weekly wage was $759 per week for the $80,000 people working in "services". As of September 30, 2014, the average weekly wage was down to $700 per week. When looking at the Public Sector, the State and Local Wages increased while the Federal Wages declined. Revenue Sources overall increased 2.3%. However, Median family income, controlled by inflation, is down 11% and supports his belief the City has been growing taxes and fees on families whose real income is declining and he believes the City must either grow the economy or get a handle on the expense side. June 2, 2015 111 -14- CITY COUNCIL COMMENTS ITEM#64906 Councilman Uhrin advised Warrior Week was held this past week in conjunction with the Patriotic Festival. Over 500 Wounded Warriors and their families participated. He has asked the USO to come and present a brief summary of all of the events that took place. June 2, 2015 111 -15- CITY COUNCIL COMMENTS ITEM#64907 Councilman Dyer advised he would like to move forward in scheduling a Briefing regarding promoting civility in hopes of coming up with ideas. It is obvious this type of discussion is needed throughout a number of cities and hopefully we can be a driving force on this issue. June 2, 2015 -16- A GENDA REVIEW SESSION 4:19 P.M. ITEM#64908 BY CONSENSUS, the following shall compose the CONSENT AGENDA: 1. ORDINANCES/RESOLUTIONS 1. Resolution to REQUEST assistance of the Virginia Beach Development Authority (VBDA) re the sale of Public Facility Revenue Bonds, Series 2015A in the maximum amount of$52-Million and Refunding Revenue Bonds, Series 2015B in the amount of$45- Million 2. Resolution to ENDORSE the Deferred Compensation Investment Policy as approved by the Deferred Compensation Board 3. Resolution to GRANT permits re Emergency Medical Services: a. American Lifeline Medical Transport, Inc. b. American Medical Response Mid-Atlantic, Inc. c. Cardinal Ambulance Services,Inc. d. Children's Hospital of the King's Daughters e. Eagle Medical Transports, LLC f. Emergency Medical Response LLC g. Medical Transport, LLC h. Mid-Atlantic Regional Ambulance, Inc. i. Nightingale Air Ambulance j. Reliance Medical Transport k Robbie's Ambulance Service, Inc. 1. Special Event Providers of Emergency Medicine m. Swift Medical Transport n. Tidewater Medical Transport, LLC 4. Ordinance to EXECUTE a Design Agreement re Lynnhaven River Basin Ecosystem Restoration 5. Ordinances to ACCEPT and APPROPRIATE: a. $174,457 in Insurance Recovery Revenue re "IT Service Continuity" b. $ 50,000 from the Virginia Department of Fire Programs re training equipment June 2, 2015 -17- AGENDA REVIEW SESSION ITEM#64908 (Continued) BY CONSENSUS, the following shall compose the CONSENT AGENDA: J. PLANNING 1. JEFFREY A. and SUZANNE BREIT for a change in a Non-Conforming Use re structure enlargement at 608 Linkhorn Drive DISTRICT 6—BEACH 2. THOMAS R. and JOAN G. ECKERT for a Conditional Change of Zoning from R-7.5 Residential to Conditional PD-H2 Planned Development, R-5D Residential and Conditional B-1A Business re office and residential use at 4444 Shore Drive (Deferred May 5, 2015)DISTRICT 4—BAYSIDE 3. Ordinance to AMEND 0 4.3, 4.9, 5.1 and 6.1 of the Floodplain Ordinance re Recreational Resort Communities 4. Ordinances to GRANT extensions for satisfying conditions of Street Closures granted June 17, 2014: a. Former Oakmears Crescent now part of relocated Princess Anne Road b. Unimproved right-of-way of Oakmears Crescent DISTRICT 2-KEMPSVILLE MAYOR SESSOMS WILL ABSTAIN ON ITEM#2 MAYOR SESSOMS WILL ABSTAIN ON ITEM#4a/b June 2, 2015 -18- ITEM#64909 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: 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) Arena 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 2.2-3711(A)(3). Princess Anne Princess Anne Beach District Beach District Beach District 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 June 2, 2015 -19- ITEM#64909 (Continued) Upon motion by Councilman Dyer, seconded by Councilman Moss, City Council voted to proceed into CLOSED SESSION at 4:22 P.M. Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: (Closed Session 4:22P.M. - 5:48 P.M.) (Break 5:48 P.M. - 6:00 P.M.) June 2, 2015 -20- FORMAL SESSION VIRGINIA BEACH CITY COUNCIL June 2,2015 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,June 2, 2015, at 6:00 P.M. Council Members Present: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, Mayor William D. Sessoms, Jr., Rosemary Wilson, James L. Wood and John E. Uhrin Council Members Absent: None INVOCATION: Vice Mayor Louis R. Jones PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Mayor Sessoms DISCLOSED he is retired from Towne Bank (which has a corporate office located at 297 Constitution Drive in Virginia Beach), and no longer has any involvement in Towne Bank's transactions. However, due to the size of TowneBank and the volume of transactions it handles, Towne Bank has an interest in numerous matters in which he is not personally involved and of which he does not have personal knowledge. In that regard, he is always concerned about the appearance of impropriety that might arise if he unknowingly participates in a matter before City Council in which TowneBank has an interest. Mayor Sessoms also has similar concerns with respect to Berkshire Hathaway Home Services Town Realty, which is an affiliate of Towne Bank. 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 idents 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 January 13, 2015, is hereby made a part of the record. June 2, 2015 -21- Vice Mayor Jones DISCLOSED,for many years, he served on the Board of Directors of Resource Bank. Three (3)years ago, Fulton Financial Corporation ("Fulton Financial')purchased Resource Bank. On March 31, 2007, Vice Mayor Jones retired from the Board of Directors. Although, he is no longer a Board Member, he owns stock in Fulton Financial and that stock ownership causes him to have a "personal interest" in Fulton Financial. However, due to the size of Fulton Financial and the volume of transactions it handles in any given year, Fulton Financial, or any of the banks that are owned by Fulton Financial, may have an interest in numerous matters in which Vice Mayor Jones has no personal knowledge. In order to ensure his compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act, it is his practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which he might have an actual or potential conflict. If during his review, he identifies any matters, Vice Mayor Jones will prepare and file the appropriate disclosure letter to be recorded in the official records of City Council. Vice Mayor Jones regularly makes this disclosure. Vice Mayor Jones' letter of April 10, 2007, is hereby made a part of the record. Council Lady Rosemary Wilson DISCLOSED she is a Real Estate Agent affiliated with Berkshire Hathaway Home Services Town Realty ("Berkshire Hathaway'), which was formerly known as Prudential Towne Realty. Because of the nature of Real Estate Agent affiliation and the volume of transactions it handles in any given year, Berkshire Hathaway 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 of January 13, 2015, is hereby made a part of the record. Council Lady Rosemary Wilson also DISCLOSED she has a personal interest in Dixon Hughes Goodman and receives income from the firm as a result of her late husband's employment. The income is proceeds from the sale of his partnership interest,paid out over an extended period of time. She is not an employee of Dixon Hughes Goodman, does not have any role in management of the company and does is not privy to its client list. However, due to the size of Dixon Hughes Goodman and the volume of transactions it handles in any given year, Dixon Hughes Goodman may have an interest in matters of which she has no personal knowledge In that regard, she is always concerned about the appearance of impropriety that might arise if she unknowingly participates in a matter before City Council in which Dixon Hughes Goodman has an interest. In order to ensure her compliance with both the letter and spirit of the State and Local Government Conflict of Interests Act (the `Act'), it is her practice to thoroughly review each City Council agenda to identify any matters in which she might have an actual or potential conflict. If during her review of an agenda, she identifies a matter in which she has a `personal interest", as defined by the Act, she 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. Council Lady Wilson's letter of June 2, 2015, is hereby made a part of the record. June 2, 2015 41-,40.14111100,..11:4, 04 � City of Vir- ir-xia I �aach Zo 9t V 6 OF OUR NAj�ONS VBgov.com ROSEMARY WILSON PHONE: (757)422-0733 COUNCIL LADY-AT-LARGE June 2, 2015 FAX (757)385-5669 In Reply Refer to File No.: 0055069 Mrs. Ruth Hodges Fraser, MMC City Clerk Municipal Center Virginia Beach, VA 23456 Re: Conflict of Interests Act Disclosure—Dixon Hughes Goodman Dear Mr. Fraser: I have a personal interest in Dixon Hughes Goodman because I receive income from the firm as a result of my late husband's employment by the company. The income is proceeds from the sale of his partnership interest, paid out over an extended period of time. I am not an employee of Dixon Hughes Goodman, I have no role in the management of the company, and I am not privy to its client list. Due to the size of Dixon Hughes Goodman and the volume of transactions it handles in any given year, Dixon Hughes Goodman may have an interest in matters of which I have no personal knowledge. I am always concerned about the appearance of impropriety that might arise if I participate in a matter before City Council in which Dixon Hughes Goodman has an interest, but in which I have no personal knowledge of that interest. In order to ensure my compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act (the "Act"), it is my practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which I might have an actual or potential conflict. If, during my review of the agenda for any given meeting of the Council, I identify a matter in which I have a "personal interest," as defined in the Act, because of my receipt of retirement income Dixon Hughes Goodman, I will make the appropriate disclosure and take appropriate actions. Thank you for your assistance and cooperation in this matter. Very truly yours, 77+ (14(hree14' 3 f Rosemary A. Wil on Councilmember RAW:RRI 1304 WREN PLACE,VIRGINIA BEACH,VA 23451 II -22- Item—VI-E CERTIFICATION ITEM#64910 Upon motion by Councilman Dyer, seconded by Councilman Moss, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE 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: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 I OIA•BE40 O _ U4 =r.i. Y 4 ti rS 9 S OF ZR'' UR .- RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM#64909 Page 19, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW,THEREFORE,BE IT RESOLVED:That the Virginia Beach City Council hereby certifies that,to the best of each member's knowledge,(a)only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard,discussed or considered by Virginia Beach City Council. uth Hodges Fraser,MMC City Clerk June 2,2015 -23- Item -VI-F MINUTES ITEM#64911 Upon motion by Councilman Moss, seconded by Councilman Dyer, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSIONS of May 19, 2015. Voting: 10-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond,John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Abstaining.• Mayor William D. Sessoms, Jr. Council Members Absent: None June 2, 2015 -24- ADOPT AGENDA FOR FORMAL SESSION ITEM#64912 BY CONSENSUS, City Council ADOPTED: AGENDA FOR THE FORMAL SESSION June 2, 2015 I -25- Item V—K1 MAYOR'S PRESENTATION ITEM#64913 RESOLUTION:• SENATOR JEFFREY Mc WATERS DAY Rescheduled due to death in Senator McWater's family June 2, 2015 -26- Item -VI-I ORDINANCES/RESOLUTIONS ITEM#64914 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED, BY CONSENT,Agenda Items 1,2, 3a/b/c/d/e/f/g/h/i/j/k/l/m/n, 4 and 5a/b. Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 -27- Item-VI-I.1 ORDINANCES/RESOLUTIONS ITEM#64915 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Resolution to REQUEST assistance of the Virginia Beach Development Authority (VBDA) re the sale of Public Facility Revenue Bonds, Series 2015A in the maximum amount of$52-Million and Refunding Revenue Bonds, Series 2015E in the amount of$45-Million Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 RESOLUTION APPROVING A PLAN OF FINANCING WITH THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, APPROVING CERTAIN DOCUMENTS PREPARED IN CONNECTION WITH SUCH FINANCING AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE SAME WHEREAS, the City of Virginia Beach, Virginia (the "City") desires to undertake, in connection with the City of Virginia Beach Development Authority (the "Authority"), the financing from time to time of projects for the acquisition, construction, renewal, upgrade, replacement and other improvements for various public facilities and equipment, including projects for public buildings and structures; public school facilities; public streets and roads and related infrastructure; computer and information technology systems; energy management and heating ventilation and cooling systems; communications systems and related hardware and software; public parks and other recreational facilities; and funding for strategic growth area programs (collectively, the "2015 Projects"); and WHEREAS, the City further desires to achieve debt service savings by refinancing certain of the Public Facility Revenue Bonds, Series 2007A (the "Prior Bonds") previously issued by the Authority on behalf of the City to finance various public facilities; and WHEREAS, the Authority, pursuant to Chapter 643 of the Virginia Acts of Assembly of 1964, as amended (the "Act"), under which it is created, is authorized to acquire, improve, maintain, equip, own, lease and dispose of"Authority facilities," as defined in the act, to finance or refinance such facilities, to issue its revenue bonds, notes and other obligations from time to time for such purposes and to pledge all or any part of its assets, whether then owned or thereafter acquired, as security for the payment of the principal of and interest on any such obligations; and WHEREAS, in furtherance of the purposes of the Act, the City requests the Authority's assistance through the issuance of its Public Facility Revenue Bonds, Series 2015A in the maximum principal amount of$52,000,000 (the "Series 2015A Bonds") and its Public Facility Refunding Revenue Bonds, Series 2015B in the maximum principal amount of$45,000,000 (the "Series 2015B Bonds" and collectively with the Series 2015A Bonds, the "Series 2015 Bonds") in financing the 2015 Projects, refinancing all or a portion of the Prior Bonds and paying costs of issuing the Series 2015 Bonds; and WHEREAS, the City desires to complete the financing of the 2015 Projects and refunding of the Prior Bonds within the current fiscal year ending June 30, and in furtherance of such objective, the Authority at its May 19, 2015 meeting, upon presentation of the City's proposed financing plan by representatives of the City, approved the issuance of the Series 2015 Bonds for such purposes, subject to approval of the financing plan by the City Council of the City (the "City Council"); and WHEREAS, there have been provided or made available to City Council of the City drafts of the following documents (the "Documents"), proposed in connection with the undertaking of the 2015 Projects, the refunding of the Prior Bonds and the issuance and sale of the Series 2015 Bonds, which Documents were provided to the Authority in connection with the Authority's approval: (a) Eighth Supplemental Agreement of Trust draft dated June 1, 2015 (the "Eighth Supplemental Agreement"), supplementing the Agreement of Trust dated as of September 1, 2003, as previously supplemented, including the form of the Series 2015 Bonds (collectively, the "Trust Agreement"), all between the Authority and U.S. Bank National Association (successor to Wachovia Bank, National Association), as successor trustee (the "Trustee"), pursuant to which the Series 2015 Bonds are to be issued and which is to be acknowledged and consented to by the City; (b) Seventh Supplemental Support Agreement draft dated June 1, 2015, supplementing and amending the Support Agreement dated as of September 1, 2003, as previously supplemented and amended (the "Support Agreement"), all between the Authority and the City pursuant to which the City will make annual payments to the Authority in amounts sufficient to pay the principal of and interest on the Series 2015 Bonds; (c) Preliminary Official Statement draft dated May 15, 2015, of the Authority relating to the public offering of the Series 2015 Bonds (the Preliminary Official Statement"); and (d) Continuing Disclosure Agreement draft dated June 1, 2015, the form of which is appended to the Preliminary Official Statement, pursuant to which the City agrees to undertake certain continuing disclosure obligations with respect to the Series 2015 Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH,VIRGINIA: 1. The following plan for financing the 2015 Projects and refunding the Prior Bonds is hereby approved. (a) The Authority will issue the Series 2015 Bonds in a maximum aggregate principal amount not to exceed $97,000,000, of which not more than $52,000,000 will be used for the 2015 Projects and not more than $45,000,000 will be used for refunding the Prior Bonds. The Authority will use the proceeds of the Series 2015 Bonds to finance the costs of the 2015 Projects, to refund the Prior Bonds within the limitations set forth in paragraph (b) and Section 4 below and at the election of the City Manager to pay all or a portion of the costs of issuance of the Series 2015 Bonds. Pursuant to the Support Agreement, the City will make Annual Payments and Additional Payments (as each is defined in the Support Agreement) to the Authority in amounts sufficient to amortize the Series 2015 Bonds and to pay the fees or expenses of the Authority and the Trustee. The obligation of the Authority to pay principal of and premium, if any, and interest on the Series 2015 Bonds will be limited to Annual Payments and Additional Payments received from the City. The Series 2015 Bonds will be secured by an assignment of the Annual Payments and certain Additional Payments due under the Support Agreement, all for the benefit of the holders of the Series 2015 Bonds. The undertaking by the City to make Annual Payments and Additional Payments will be subject to the City Council 2 I II making annual appropriations in amount sufficient for such purposes. The plan of financing for the 2015 Projects shall contain such additional requirements and provisions as may be approved by the City. (b) In connection with the refunding of the Prior Bonds, the City Manager is authorized and directed to select the principal maturities of the Prior Bonds or portions of such maturities to be refunded and, working with the Authority, to cause to be called for optional redemption any such maturity or portion thereof to be redeemed prior to its stated maturity in accordance with the provisions of such bonds; provided such maturities or portions thereof selected are expected in the aggregate to provide a minimum savings of 3.0% on a net present value basis as determined by the City's financial advisor, Public Resources Advisory Group (the "Financial Advisor"). In connection with the refunding herein authorized, the City Manager, if determined necessary or appropriate in consultation with the Financial Advisor, is authorized to retain the services of independent consultants to provide verification reports (the "Verification Agent") on aspects of the refunding and is further authorized to retain the services of one or more escrow agents (the "Escrow Agent") and to enter into escrow agreements with them to the extent needed to hold portions of the proceeds of the Series 2015 Bonds, defeasance securities purchased with such proceeds and other funds as needed pending their application to refund the Prior Bonds or portions thereof selected to be refunded. 2. The City Council, while recognizing that it is not empowered to make any binding commitment to make appropriations beyond the current fiscal year, hereby states its intent to make annual appropriations in future fiscal years in amounts sufficient to make all payments due under the Support Agreement and hereby recommends that future City Councils do likewise during the term of the Support Agreement. 3. The City Manager is hereby authorized to execute the Documents, which shall be in substantially the forms provided or made available to City Council, which are hereby approved, with such completions, omissions, insertions and changes, including changes to the dates thereof, not inconsistent with this Resolution as may be approved by the City Manager, his execution to constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. 4. (a) In making completions to the Support Agreement, the City Manager, in collaboration with the Financial Advisor, shall provide for Annual Payments in amounts equivalent to, and at all times sufficient to make, the payments on the Series 2015 Bonds, which shall be sold to the purchaser or purchasers thereof on terms as shall be satisfactory to the City Manager; provided for a combined sale of the Series 2015A Bonds and Series 2015B Bonds or upon a separate sale of the Series 2015A Bonds, such bonds (i) shall mature not later than December 1, 2035, (ii) have a true or "Canadian" interest cost not exceeding 4.00% (taking into account any original issue discount and premium), (iii) be sold to the purchaser or purchasers thereof at a price not less than par or 100% of the aggregate principal amount thereof and (iv) shall be subject to optional redemption beginning no later than and continuing after December 1, 2025, at an optional redemption price of no more than 102% of the principal amount to be redeemed plus accrued interest to the optional redemption date. (b) In the event the City Manager determines in consultation with the Financial Advisor that it is in the best interest of the City to provide for a separate sale of the 3 Series 2015B Bonds for the refunding of the Prior Bonds, then with respect to such separately sold Series 2015B Bonds, such bonds (i) shall mature not later than the final maturity date of the Prior Bonds being refunded, (ii) have a true or "Canadian" interest cost not exceeding 3.50% (taking into account any original issue discount and premium), (iii) be sold to the purchaser or purchasers thereof at a price not less than par or 100% of the aggregate principal amount thereof and (iv) shall be subject to optional redemption beginning no later than and continuing after December 1, 2025, at an optional redemption price of no more than 102% of the principal amount to be redeemed plus accrued interest to the optional redemption date. (c) The City Manager is further authorized to approve the principal amounts, maturity schedules and interest payment dates, including determination of any serial maturities and any term maturities, for the Series 2015 Bonds and, in consultation with the Financial Advisor, to provide for the issuance of the Series 2015 Bonds in one or more series at the same time or at different times as tax-exempt or taxable obligations, with appropriate series designations, as the City Manager determines to be necessary or appropriate and in the best interest of the City. (d) The Series 2015 Bonds shall be sold by competitive bid in one or more series in the principal amount determined by the City Manager, in collaboration with the Financial Advisor, and the City Manager shall receive bids and award the Series 2015 Bonds to the bidder providing the lowest "true" or "Canadian" interest cost, subject to the limitations set forth in the paragraphs above. Following the sale of the Series 2015 Bonds, the City Manager shall file a certificate with the City Clerk setting forth the final terms of the Series 2015 Bonds. The actions of the City Manager in approving the terms of the Series 2015 Bonds shall be conclusive, and no further action shall be necessary on the part of the City Council. 5. The Preliminary Official Statement in the form provided or made available to City Council is approved with respect to the information contained therein pertaining to the City. The Preliminary Official Statement in form deemed to be "near final," within the meaning of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the City Manager is authorized to be distributed in connection with the marketing and sale of the Series 2015 Bonds. Such distribution shall constitute conclusive evidence that the City has deemed the Preliminary Official Statement to be final as of its date within the meaning of the Rule, with respect to the information therein pertaining to the City. The City Manager is authorized and directed to approve such completions, omissions, insertions and other changes to the Preliminary Official Statement that are necessary to reflect the terms of the sale of the Series 2015 Bonds, within the limitations as set forth in Section 4, and the details thereof and that are appropriate to complete it as an official statement in final form (the "Official Statement") and distribution thereof to the purchaser or purchasers of the Series 2015 Bonds shall constitute conclusive evidence that the City has deemed the Official Statement final as of its date within the meaning of the Rule. 6. The City covenants that it shall not take or omit to take any action the taking or omission of which shall cause the Series 2015 Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code), and regulations thereunder, or otherwise cause interest on the Series 2015 Bonds to be includable in the gross income for Federal income tax purposes of the registered owners thereof under existing law. 4 Without limiting the generality of the foregoing, the City shall comply with any provision of law that may require the City at any time to rebate to the Unites States.of America any part of the earnings derived from the investment of the gross proceeds of the Series 2015 Bonds. The City shall pay from its legally available general funds any amount required to be rebated to the United States of America pursuant to the Code. 7. To ensure compliance with federal tax law after the Series 2015 Bonds are issued, the City Manager, Director of Finance and other officers of the City are authorized and directed to apply the Post-Issuance Compliance Policies and Procedures adopted by Council on March 13, 2012 to monitor the use of the proceeds of the Series 2015 Bonds, including the use of the projects financed and refinanced with such proceeds, and to monitor compliance with arbitrage yield restriction and rebate requirements. 8. The Director of Finance is authorized to direct the City Treasurer to utilize the State Non-Arbitrage Program of the Commonwealth of Virginia ("SNAP") in connection with the investment of the proceeds of the Series 2015 Bonds, if the City Manager and the Director of Finance determine that the utilization of SNAP is in the best interest of the City. The City Council acknowledges that the Treasury Board of the Commonwealth of Virginia is not, and shall not be, in any way liable to the City in connection with SNAP, except as otherwise provided in the SNAP Contract. 9. Any authorization herein to execute a document shall include authorization to deliver it to the other parties thereto and to record such document where appropriate. 10. All other acts of the City Manager, the Director of Finance and other officers of the City that are in conformity with the purposes and intent of this Resolution and in furtherance of the issuance and sale of the Series 2015 Bonds, the undertaking of the 2015 Projects and the refinancing of the Prior Bonds are hereby approved and ratified, including all actions taken by officers of the City concerning the payment of administrative fees by the City to the Authority in connection with the Series 2015 Bonds and all other public facility revenue bonds. The City Manager is authorized to prepare, modify or amend such documents and agreements as may be required to evidence the approval of such other actions. 11. The City Manager is authorized and directed to cause a certified copy of this Resolution to be filed with the Authority to evidence the City Council's request for assistance and approval of the plan of financing for the 2015 Projects and refinancing of the Prior Bonds through the issuance by the Authority of the Series 2015 Bonds. 12. This Resolution shall take effect immediately. 5 Adopted by the City Council of the City of Virginia Beach, Virginia, this 2nd day of June, 2015. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICI- • - • d Ci JOU GC Finance Department Cit Attoue ► fite p CA13357 R-1 May 18,2015 6 CERTIFICATE The undersigned Clerk of the City Council of the City of Virginia Beach, Virginia (the "City Council"), certifies that: 1. A meeting of the City Council was held on June _, 2015, at the time and place established and noticed by the City Council, at which the members of the City Council were present or absent as noted below. The foregoing Resolution was adopted by a majority of the members of the City Council, by a roll call vote, the ayes and nays being recorded in the minutes of the meeting as shown below: PRESENT/ABSENT: VOTE: William D. Sessoms, Jr., Mayor Louis R. Jones, Vice Mayor M. Benjamin Davenport Robert M. Dyer Barbara M. Henley Shannon DS Kane John D. Moss Amelia N. Ross-Hammond John E. Uhrin Rosemary Wilson James L. Wood / 2. The foregoing Resolution is a true and correct copy of such Resolution as adopted on June _, 2015. The foregoing Resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on the date hereof. WITNESS my signature and the seal of the City of Virginia Beach, Virginia, this day of June, 2015. Clerk, City Council of the City of Virginia Beach, Virginia (SEAL) 4816-3288-4771.3 7 1 Project/ FY-15 PFRB Fund Project Name Description Financing Number 2-025 Witchduck Road - This project will improve capacity needs and $3,919,196 Phase II mobility demands in this area of the City. Traffic volumes per day are anticipated to reach 64,000 by 2034. 2-033 Princess Anne Rd This project is for the construction of safety $43,524 - Phase VITA improvements on Princess Anne Road from Sand- bridge Road/Upton Dr.to Indian River Rd., including shoulder widening, additional turn lanes, underground utility relocations and drainage improvements. 2-045 Pacific Avenue This project provides for the improvements to $7,713,767 Improvements Pacific Avenue between 15th Street and 23rd street within the existing right-of-way,to include Under-grounding of existing overhead utilities and public utility upgrades. In addition, new LED street lighting and traffic light signal mast arms will be installed. 2-072 First Colonial This project will improve the First Colonial Rd/Va. $499,764 Rd/Va. Beach Beach Blvd intersection with the addition of turn Blvd. Intersection lanes and traffic signalization improvements, Improvements widening areas of First Colonial Rd.from 1-264 overpass to 1,000 feet south of Potters Road along Oceana Blvd from four lanes to six lanes. 2-195 Princess Anne Rd This project is for construction of a four-lane divided $2,899,643 - Phase VIIA roadway with a bike path,from General Booth Blvd to Upton Dr., a distance of approximately 1.0 mile. Improvements at the intersections of General Booth Blvd, Elson Green Ave. and Upton Dr./Sandbridge Rd. are included as well as aesthetic upgrades. 2-401 Greenwich Road This is the first phase of overall eastbound 1-264 $894,808 Crossover/Cleve- interstate improvements. Relocating the existing and St. Greenwich Road into the existing Cleveland Improvements Street/Clearfield Avenue intersection. This project will be designed and constructed in three phases. 2-409 Centerville This project will provide two southbound lanes on $287,266 Turnpike— Centerville Turnpike and Jake Sears Road to Phase II Broadwindsor Lane as well as triple left turn lane at intersection of Indian River Road and Centerville Turnpike. Part of a future six-lane section of the roadway. 1 • Project/ FY-15 PFRB Fund Project Name Description Financing Number 3-019 Adam This project will expand the Adam Throughgood $70,783 Thoroughgood House site with the construction of a 3,000 square House Visitor foot building,that will include ADA compliant public Center rest rooms, a small gift shop, a video viewing area Construction for mobility impaired patrons, an office for staff, collections storage, and an exhibit/education space. 3-095 CIT-Police This project implements the Criminal Justice $209,417 Integrated Public Automated Systems Analysis. It is an integrated Safety Record Public Safety Record Management System Mgmt Sys comprising mobile and electronic summons components and enhanced interfacing between the City's public safety agencies and State, Federal,and regional public safety systems. 3-137 Various Buildings This project provides rehabilitation and renewal of $943,753 Rehabilitation interior and exterior systems for City owned and Renewal III buildings/facilities. It addresses a backlog of original roofs, which were installed from 1968 to 1984. It excludes roofs for fire stations and parks and recreations facilities, which are included in separate projects. It includes rehabilitation and replacement of the Fire Training Center's existing facility and libraries. 3-142 CIT-Corn Communications infrastructure including radios, $10,693,134 Infrastructure computer aided dispatch workstations,transmitter Replacement— sites, public safety vehicle mobile computer Phase II terminals and hardware. 3-200 Revenue This project provides for a comprehensive and $163,552 Assessment and coordinated replacement of computer systems Collection System currently used to support tax revenue and collection. 3-503 Housing Resource This project is to construct an approximately $287,994 Center 43,000 square foot Housing Resource Center that would provide shelter and services to homeless persons and those at risk of homelessness. In addition, some services may be available for the general community. 4-505 Modernization of This project will fund the design and construction $3,530,192 Bow Creek costs required to tear down and rebuild the Bow Community Rec Ctr. Creek Community Recreation Center and relocate certain storage facilities on the current site. 2 III Project/ FY-15 PFRB Fund Project Name Description Financing Number 4-506 Parks Infrastructure This project funds the implementation of $745,307 Renewal and renovations, replacements in all City signature, Replacement metro,and community parks as well as special use sites totaling 1,100 acres throughout the City. 9-006 Winston-Salem Ave This project will provide funding for design, $255,881 Impry property acquisition and construction of a two- lane roadway with on-street parking and five feet wide sidewalks within a sixty foot right-of-way along Winston-Salem Ave. between Pacific Ave. and Mediterranean Ave. 9-007 Resort Public This project is for identification of sites and $156,612 Transit Relocation development of a Hampton Road Transit (HRT) Bus Transfer Station consisting of two bus shelters located on about one-half acre of land,which will be relocated due to the development of the City owned site on 19th St. and Pacific Ave.The project does not include the cost of property acquistions, if required. 9-081 Strategic Growth This project will provide planning and design $1,670,232 Area Program services, build or replace public infrastructure improvements, and acquire property as needed in order to support implementation of the Strategic Growth Area plans. In addition,the project will provide for consulting and SGA related initiatives. Priorities for the SGA implementation plan include Burton Station Village design and construction, Form Based Zoning, Newtown SGA Plan, and Wesleyan Drive Improvements. 9-085 Burton Station Road This project will provide basic and long needed $35,363 Improvements- Ph utility services and standard roadway II improvements including curb and gutter, sidewalk and streetlights necessary to preserve and revitalize the existing residential community consistent with the phasing and implementation goals recommended in the adopted Burton Station/Northampton Boulevard Corridor Strategic Growth Area Implementation plan. 3 Project/ FY-15 PFRB Fund Project Name Description Financing Number 9-091 Burton Station Road The purpose of this project is to provide a $26,259 Improvements—Ph connection between Burton Station Road and Air III Rail Drive via an extension of Tolliver Road (formerly called Golf Course Road) to provide infrastructure necessary to promote future development consistent with the phasing and implementation goals recommended in the adopted Burton Station/Northampton Boulevard Corridor Strategic Growth Area Implementation plan. 9-096 Oceanfront Capital This project provides on-going funding to reinvest $270,452 Projects in various high impact capital projects at the Reinvestment oceanfront. The primary focus of the project is to replace Atlantic Ave., side streets, and boardwalk lighting with energy efficient attractive LED lighting. The Lighting replacements are planned in phases over 10 years and are roughly estimated at$5 million with annual amounts to be programmed at$450,000. 9-108 29th St Impry This project provides funding for improvements $59,013 to 29th St. in the Resort Area as a continuation of the Laskin Road Gateway Project. The project area is 29th St.from Artic to Pacific Ave. and includes streetscape improvements including wide sidewalks and street trees, a new street with improved drainage, and undergrounding of overhead utilities. 1-233 Consolidated Old This project is for the replacement of Old $16,133,850 Donation Donation Center and Kemps Landing Magnet with Center/Kemps a consolidated facility. Old Donation Center, Landing Magnet originally built in 1965, and Kemps Landing Replacement Magnet, built in 1957, can no longer adequately house the required instructional programs and the facilities are in need of replacement.This project will extend the useful life of the facility by 40 to 50 years. TOTAL $51,509,762 4 SEVENTH SUPPLEMENTAL SUPPORT AGREEMENT , between CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY and CITY OF VIRGINIA BEACH,VIRGINIA Dated as of June 1, 2015 NOTE: THIS SEVENTH SUPPLEMENTAL SUPPORT AGREEMENT HAS BEEN ASSIGNED TO, AND IS SUBJECT TO A SECURITY INTEREST IN FAVOR OF, U.S. BANK NATIONAL ASSOCIATION, AS SUCCESSOR TRUSTEE UNDER AN AGREEMENT OF TRUST DATED AS OF SEPTEMBER 1, 2003, AS PREVIOUSLY SUPPLEMENTED AND AS FURTHER SUPPLEMENTED BY AN EIGHTH SUPPLEMENTAL AGREEMENT OF TRUST DATED AS OF JUNE 1, 2015, WITH THE CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, AS AMENDED OR SUPPLEMENTED FROM TIME TO TIME. INFORMATION CONCERNING SUCH SECURITY INTEREST MAY BE OBTAINED FROM THE TRUSTEE AT RICHMOND,VIRGINIA. TABLE OF CONTENTS Parties 1 Recitals 1 Granting Clauses 1 ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION Section 1.1 Definitions 2 Section 1.2 Rules of Construction 3 ARTICLE II REPRESENTATIONS Section 2.1 Representations by Authority 4 Section 2.2 Representations by City 4 ARTICLE III AGREEMENT TO ISSUE BONDS Section 3.1 Agreement to Issue Series 2015 Bonds 5 ARTICLE IV PAYMENT OBLIGATIONS; MASTER SUPPORT AGREEMENT AMENDMENTS Section 4.1 Amounts Payable 5 ARTICLE V PREPAYMENT AND REDEMPTION Section 5.1 Prepayment and Redemption 6 ARTICLE VI SERIES 2015 ARBITRAGE REBATE FUND Section 6.1 Series 2015 Arbitrage Rebate Fund 6 Section 6.2 Rebate Requirements 7 Section 6.3 Calculation and Report of Rebate Amount 7 Section 6.4 Payment of Rebate Amount 7 Section 6.5 Reports by Trustee 8 Section 6.6 Disposition of Balance in Series 2015 Arbitrage Rebate Fund 8 ARTICLE VII MISCELLANEOUS Section 7.1 Private Activity Covenants 8 Section 7.2 Post-Issuance Compliance 9 Section 7.3 Severability 9 Section 7.4 Successors and Assigns 9 Section 7.5 Counterparts 9 Section 7.6 Governing Law 9 Signatures 10 Receipt 11 Exhibit A— Schedule of Payments A-1 Exhibit B —Description of Series 2015 Projects B-1 Exhibit C—Administrative Fee Schedule C-1 ii II THIS SEVENTH SUPPLEMENTAL SUPPORT AGREEMENT dated as of June 1, 2015, by and between the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Authority"), and the CITY OF VIRGINIA BEACH,VIRGINIA, a political subdivision of the Commonwealth of Virginia(the "City"),provides: WITNESSETH: WHEREAS, the Authority is a political subdivision of the Commonwealth of Virginia duly created by Chapter 643 of the Virginia Acts of Assembly of 1694, as amended (the "Act"); and WHEREAS, the Act authorizes the Authority to acquire, improve, maintain, equip, own, lease and dispose of"Authority facilities," as defined in the Act, to finance or refinance and lease facilities for use by, among others, a city, to issue its revenue bonds, notes and other obligations from time to time for such purposes and to pledge all or any part of its assets, whether then owned or thereafter acquired, as security for the payment of the principal of and interest on any such obligations; and WHEREAS, the City desires to undertake a program of financing or refinancing the acquisition, construction and equipping of various public facilities that the City determines to undertake from time to time; and WHEREAS, in furtherance of the purposes of the Act, the City has requested the Authority to undertake one or more series of Projects (as defined in the Support Agreement, as hereinafter defined), and the Authority has determined to issue from time to time its public facility revenue bonds and to loan the proceeds thereof to the City to finance or refinance costs incurred in connection with such Projects and costs of issuing such bonds pursuant to the terms of an Agreement of Trust dated as of September 1, 2003 (the "Master Agreement of Trust"), between the Authority and U.S. Bank National Association (successor to Wachovia Bank, National Association), Richmond, Virginia, as successor trustee (the "Trustee"), as supplemented by the First Supplemental Agreement of Trust dated as of September 1, 2003, a Second Supplemental Agreement of Trust dated as of May 1, 2005, a Third Supplemental Agreement of Trust dated as of June 1, 2007, a Fourth Supplemental Agreement of Trust dated as of May 1, 2010, a Fifth Supplemental Agreement of Trust dated as of June 1, 2012, a Sixth Supplemental Agreement of Trust dated as of June 1, 2013, a Seventh Supplemental Agreement of Trust dated as of June 1, 2014 and an Eighth Supplemental Agreement of Trust dated as of June 1, 2015, all between the Authority and the Trustee (collectively, the "Agreement of Trust"); and WHEREAS, in furtherance of the purposes of the Act,Authority has agreed to loan from time to time proceeds of such bonds to the City, and the City has agreed to repay such loans, subject to appropriation by the City council of sufficient moneys for such purpose pursuant to a support agreement between the City and the Authority dated as of September 1, 2003 (the "Master Support Agreement"), as supplemented and amended by a First Supplemental Support Agreement dated as of May 1, 2005, a Second Supplemental Support Agreement dated as of June 1, 2007, a Third Supplemental Support Agreement dated as of May 1, 2010, a Fourth Supplemental Support Agreement dated as of June 1, 2012, a Fifth Supplemental Support Agreement dated as of June 1, 2013 and a Sixth Supplemental Support Agreement dated as of June 1, 2014; and WHEREAS, within the limitations and in compliance with the Agreement of Trust, the City has requested the Authority to issue a series of Public Facility Revenue Bonds in the aggregate principal amount of $ and a series of Public Facility Refunding Revenue Bonds in the aggregate principal amount of$ (collectively, the "Series 2015 Bonds") and to loan such proceeds to the City pursuant to the terms of this Seventh Supplemental Support Agreement to finance the cost of the Series 2015 Projects (as such term is hereinafter defined) and to refund certain of the Authority's Public Facility Revenue Bonds, Series 2007A previously issued by the Authority to assist the City in financing various public facilities; and WHEREAS, all acts, conditions and things required by law to happen, exist and be performed precedent to and in connection with the execution of and entering into this Seventh Supplemental Support Agreement have happened, exist and have been performed in regular and due time and in form and manner as required by law, and the parties hereto are now duly empowered to execute and enter into this Seventh Supplemental Support Agreement; NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained and other valuable consideration, the parties hereto covenant and agree as follows: ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION Section 1.1 Definitions. Unless otherwise defined in this Seventh Supplemental Support Agreement, all words used herein shall have the meanings assigned to such terms in the Agreement of Trust or the Master Support Agreement. The following words as used in this Seventh Supplemental Support Agreement shall have the following meanings unless a different meaning clearly appears from the context: "Agreement of Trust" shall mean the Agreement of Trust dated as of September 1, 2003, as previously supplemented, and as further supplemented by the Seventh Supplemental Agreement of Trust. "Basic Agreements" shall mean the Agreement of Trust and the Support Agreement. "Eighth Supplemental Agreement of Trust" shall mean the Eighth Supplemental Agreement of Trust dated as of June 1, 2015, between the Authority and the Trustee, which supplements the Agreement of Trust. 2 "Master Support Agreement" shall mean the Support Agreement dated as of September 1, 2003,between the Authority and the City. "Refunded Prior Bonds" shall mean the maturities of the Authority's Public Facility Revenue Bonds, Series 2007A described in the Eighth Supplemental Agreement of Trust. "Series 2015 Bonds" shall mean the Authority's $ Public Facility Revenue Bonds, Series 2015A and $ Public Facility Refunding Revenue Bonds, Series 2015B, authorized to be issued pursuant to the Eighth Supplemental Agreement of Trust. "Series 2015 Projects" shall mean the financing of the acquisition, construction and equipping of all or a portion of the projects as set forth on Exhibit B. "Series 2015 Arbitrage Rebate Fund" shall mean the fund established in section 6.1 "Seventh Supplemental Support Agreement" shall mean this Seventh Supplemental Support Agreement dated as of June 1, 2015, between the Authority and the City, which supplements the Master Support Agreement. "Support Agreement" shall mean the Master Support Agreement as previously supplemented and amended and as supplemented and amended by this Seventh Supplemental Support Agreement. Section 1.2 Rules of Construction. The following rules shall apply to the construction of this Seventh Supplemental Support Agreement unless the context otherwise requires: (a) Words importing the singular number shall include the plural number and vice versa. (b) Words importing the redemption or calling for redemption of Bonds shall not be deemed to refer to or connote the payment of Bonds at their stated maturity. (c) Unless otherwise indicated, all references herein to particular Articles or Sections are references to Articles or Sections of this Seventh Supplemental Support Agreement. (d) The headings herein and Table of Contents to this Seventh Supplemental Support Agreement herein are solely for convenience of reference and shall not constitute a part of this Seventh Supplemental Support Agreement nor shall they affect its meaning, construction or effect. (e) All references herein to payment of Bonds are references to payment of principal of and premium, if any, and interest on the Bonds. 3 ARTICLE II REPRESENTATIONS Section 2.1 Representations by Authority. The Authority makes the following representations: (a) The Authority is a political subdivision of the Commonwealth of Virginia duly created under the Act; (b) Pursuant to the Act, the Authority has full power and authority to enter into the Basic Agreements and to perform the transactions contemplated thereby and to carry out its obligations thereunder and by proper action has duly authorized, executed and delivered the Basic Agreements. (c) The execution, delivery and compliance by the Authority with the terms and conditions of the Basic Agreements will not conflict with or constitute or result in a default under or violation of, (1) any existing law, rule or regulation applicable to the Authority, or (2) any trust agreement, mortgage, deed of trust, lien, lease, contract, note, order, judgment, decree or other agreement, instrument or other restriction of any kind to which the Authority or any of its assets is subject; (d) No further approval, consent or withholding of objection on the part of any regulatory body or any official, Federal state or local, is required in connection with the execution or delivery of or compliance by the Authority with the terms and conditions of the Basic Agreements, except that no representation is made as to the applicability of any Federal or state securities laws; and (e) There is no litigation at law or in equity or any proceeding before any governmental agency involving the Authority pending or, the knowledge of the Authority, threatened with respect to (1) the creation and existence of the Authority, (2) its authority to execute and deliver the Basic Agreements, (3) the validity or enforceability of the Basic Agreements, or the Authority's performance of its obligations thereunder, (4) the title of any officer of the Authority executing the Basic Agreements, or (5) the ability of the Authority to issue and sell its bonds. Section 2.2 Representations by City. The City makes the following representations: (a) The City is a political subdivision of the Commonwealth of Virginia; (b) The City has full power and authority to enter into the Basic Agreements to which it is a party and to perform the transactions contemplated thereby and to carry out its obligations thereunder and by proper action has duly authorized, executed and delivered the Basic Agreements; 4 (c) The City is not in default in the payment of the principal of or interest on any of its indebtedness for borrowed money and is not in default under any instrument under or subject to which any indebtedness for borrowed money has been incurred, and no event has occurred and is continuing that with the lapse of time or the giving of notice, or both, would constitute or result in an event of default thereunder; (d) The City is not in default under or in violation of, and the execution, delivery and compliance by the City with the terms and conditions of the Basic Agreements to which it is a party will not conflict with or constitute or result in a default under or violation of, (1) any existing law, rule or regulation applicable to the City or (2) any trust agreement, mortgage, deed of trust, lien, lease, contract, note, order, judgment, decree or other agreement, instrument or restriction of any kind to which the City or any of its assets is subject, and no event has occurred and is continuing that with the lapse of time or the giving of notice, or both, would constitute or result in such a default or violation; (e) No further approval, consent or withholding of objection on the part of any regulatory body or any official, Federal, state or local, is required in connection with the execution or delivery of or compliance by the City with the terms and conditions of the Basic Agreements to which it is a party; and (f) There is no litigation at law or in equity or any proceeding before any governmental agency involving the City pending or, to the knowledge of the City, threatened with respect to (1) the authority of the City to execute and deliver the Basic Agreements to which it is a party, (2) the validity or enforceability of the Basic Agreements or the City's performance Agreements, or(3) the ability of the City to undertake the Series 2015 Projects. ARTICLE III AGREEMENT TO ISSUE BONDS Section 3.1 Agreement to Issue Series 2015 Bonds. The Authority shall contemporaneously with the execution and delivery hereof proceed with the issuance and sale of the Series 2015 Bonds bearing interest, maturing and having the other terms and provisions set forth in the Agreement of Trust. ARTICLE IV PAYMENT OBLIGATIONS; MASTER SUPPORT AGREEMENT AMENDMENTS Section 4.1 Amounts Payable. The Master Support Agreement is hereby amended to replace in its entirety the Exhibit A attached thereto with the new Exhibit A attached hereto. Pursuant to Article IV of the Master Support Agreement and subject specifically to the limitation of Section 4.4 thereof, the City shall 5 I III pay to the Authority or its assignee the Annual Payments specified in Exhibit A attached hereto on or before the due dates set forth in such exhibit. The Annual Payments shall be payable without notice or demand at the designated corporate trust office of the Trustee. Pursuant to the First Amendment to 2002 Support Agreement dated as of May 1, 2010 between the Authority and the City, the parties agreed to fix the Authority's administrative fee for all existing public facility revenue bonds and any public facility revenue bonds to be issued in the future in accordance with the fee schedule attached to such agreement (the "Former Fee Schedule"). The Authority and the City have agreed upon a new administrative fee schedule for such public facility revenue bonds which is attached as Exhibit C. [The fee schedule in Exhibit C shall become effective on the date of issuance of the Series 2015 Bonds and shall apply to all previously issued and outstanding public facility revenue bonds, the Series 2015 Bonds and any public facility revenue bonds to be issued in the future. All prior support agreements between the Authority and the City are hereby amended by replacing the Former Fee Schedule with the schedule in Exhibit C, such amendments to become effective on the date of issuance of the Series 2015 Bonds.] ARTICLE V PREPAYMENT AND REDEMPTION Section 5.1 Prepayment and Redemption. The City, on behalf of the Authority, shall have the option to prepay an Annual Payment at the times and in the amounts as necessary to exercise its option to cause the Series 2015 Bonds to be redeemed as set forth in such Series 2015 Bonds. Such prepayments of Annual Payments shall be made at the times and in the amounts as necessary to accomplish the optional redemption of the Series 2015 Bonds as set forth in the Series 2015 Bonds. The Series 2015 Bonds shall be prepaid or redeemed in the manner and at the times set forth in the Series 2015 Bonds. Upon the exercise of such option, the City shall also pay as Additional Payments, the amounts necessary to pay the premium, if any, due on such Series 2015 Bonds on the date or dates of their redemption. The City, on behalf of the Authority, shall give the Trustee notice of any redemption of such Series 2015 Bonds at least 15 days prior to the latest date that notice of redemption maybe given pursuant to Section 402 of the Master Agreement of Trust. Such notice to the Trustee shall specify the redemption date, the principal amount of Series 2015 Bonds to be redeemed, the premium, if any, and the section of the Agreement of Trust pursuant to which such redemption is to be made. ARTICLE VI SERIES 2015 ARBITRAGE REBATE FUND Section 6.1 Series 2015 Arbitrage Rebate Fund. 6 There is hereby established the City of Virginia Beach, Virginia, Series 2015 Public Facility Revenue Bond Arbitrage Rebate Fund (the "Series 2015 Arbitrage Rebate Fund") to be held by or on behalf of the City. Subject to the limitation in Section 4.4 of the Master Support Agreement, the City shall deposit moneys in the Series 2015 Arbitrage Rebate Fund from time to time for payment of the rebate obligations under the Code (the "Rebate Amount"). The City may establish separate accounts in the Series 2015 Arbitrage Rebate Fund for such payments. Section 6.2 Rebate Requirements. Except with respect to earnings on funds and accounts qualifying for any exceptions to the rebate requirement of Section 148 of the Code, the City shall pay, but solely from amounts in the Series 2015 Arbitrage Rebate Fund, the Rebate amount to the United States of America, as and when due, in accordance with Section 148(f) of the code, as provided in this Article, and shall retain records of all such determinations until six years after payment of the Series 2015 Bonds. Section 6.3 Calculation and Report of Rebate Amount. (a) The City selects March 1 as the end of the bond year with respect to the Series 2015A Bonds and July 15 for the Series 2015B Bonds pursuant to Treasury Regulation Section 1.148-1. (b) Within 30 days after the initial installment computation date which is the last day of the fifth bond year, unless such date is changed by the City prior to the date that any amount with respect to the Series 2015 Bonds is paid or required to be paid to the United States of America as required by Section 148 of the Code, and at least once every five years thereafter, the City shall cause the Rebate Amount to be computed and shall deliver a copy of such computation (the "Rebate Amount Certificate") to the Authority and the Trustee. Prior to any payment of the Rebate Amount to the United States of America as required by Section 148 of the Code, a Rebate Amount Certificate setting forth such Rebate Amount shall be prepared or approved by (1) a person with experience in matters of governmental accounting for Federal income tax purposes or(2) a bona fide arbitrage rebate calculation reporting service. Section 6.4 Payment of Rebate Amount. Not later than 60 days after the initial installment computation date, the City shall pay solely from amounts in the Series 2015 Arbitrage Rebate Fund to the United States of America at least 90% of the Rebate Amount as set forth in the Rebate Amount Certificate prepared with respect to such installment computation date. At least once on or before 60 days after the installment computation date that is the fifth anniversary of the initial installment computation date or on or before 60 days after every fifth anniversary date thereafter until final payment of the Series 2015 Bonds, the City shall pay to the United States of America not less than the amount, if any, by which 90% of the Rebate Amount set forth in the most recent Rebate Amount Certificate exceeds the aggregate of all such payments theretofore made to the United States of America pursuant to this Section. On or before 60 days after final payment of the Series 2015 Bonds, the City shall pay to the United States of America the amount, if any, by which 100% of 7 111 the Rebate Amount set forth in the Rebate Amount Certificate with respect to the date of final payment of the Series 2015 Bonds exceeds the aggregate of all payments theretofore made pursuant to this Section. All such payments shall be made solely from amounts in the Series 2015 Arbitrage Rebate Fund. Notwithstanding any provision of the Support Agreement to the contrary, no such payment shall be made if the City receives and delivers to the Trustee and the Authority an opinion of Bond Counsel to the effect that (a) such payment is not required under the Code in order to prevent the Series 2015 Bonds from becoming "arbitrage bonds" within the meaning of Section 148 of the Code or (b) such payment should be calculated and paid on some alternative basis under the code, and the City complies with such alternative basis. The Authority covenants that, if so requested by the City, it shall execute any form required to be signed by an issuer of tax-exempt bonds in connection with the payment of any Rebate amount (including Internal Revenue Service Form 8038-T) based on information supplied to the Authority by the City. The City shall supply all information required to be stated on such form and shall prepare such form. Except for the execution and delivery of such form upon timely presentation by the City, the Authority shall have no responsibility for such form or the information stated thereon. Section 6.5 Reports by Trustee. The Trustee shall provide the City within 10 days after each May 1 and within 10 days after the final payment of the Series 2015 Bonds with such reports and information with respect to earnings of amounts held under the Agreement of Trust as may be requested by the City in order to comply with the provisions of this Article. Section 6.6 Disposition of Balance in Series 2015 Arbitrage Rebate Fund. After each payment required in Section 6.4 is made and any additional amount necessary to pay the full rebate obligation is retained, the remaining amount in the Series 2015 Arbitrage Rebate Fund shall be retained by the City and used for any lawful purpose. ARTICLE VII MISCELLANEOUS Section 7.1 Private Activity Covenants. The City covenants not to permit the proceeds of the Series 2015 Bonds to be used in any manner that would result in (a) 5% or more of such proceeds or the facilities financed with such proceeds being used in a trade or business carried on by any person other than a governmental unit, as provided in Section 141(b) of the Code, (b) 5% or more of such proceeds being used with respect to any "output facility" (other than a facility for the furnishing of water), within the meaning of Section 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any persons other than a governmental unit, as 8 provided in Section 141(c) of the Code; provided, however, that if the City receives an opinion of Bond Counsel that any such'covenants need not be complied with to prevent the interest on the Series 2015 Bonds from being includable in the gross income for Federal income tax purposes under existing law, the City need not comply with such covenants. Section 7.2 Post-Issuance Compliance. After the Series 2015 Bonds are issued, the City covenants to monitor the use of the proceeds of such bonds, and the projects financed or refinanced with such bonds, and requirements related to arbitrage yield restriction and rebate with respect to such bonds under the City's Post-Issuance Compliance Policy and Procedures (the "Policy") for tax-advantaged governmental purpose bonds adopted by resolution of the City Council on March 13, 2012. In any instance of noncompliance detected through application of the Policy, the City covenants to take corrective action in accordance with the Policy, and to notify the Authority of the matter and corrective action taken or to be taken. The Authority agrees to cooperate with the City in any instance where action of the Authority may be required in connection with the City's corrective action. Section 7.3 Severability. If any provision of this Seventh Supplemental Support Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not invalidate any other provision hereof. Section 7.4 Successors and Assigns. This Seventh Supplemental Support Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. Section 7.5 Counterparts. This Seventh Supplemental Support Agreement may be executed in any number of counterparts, each of which shall be an original, all of which together shall constitute but one and the same instrument. Section 7.6 Governing Law. This Seventh Supplemental Support Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia. [REMAINDER OF PAGE INTENIONALLY LEFT BLANK] 9 • IN WITNESS WHEREOF, the parties have caused this Seventh Supplemental Support Agreement to be duly executed by their duly authorized representatives as of the date first above written. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY By: Chairman CITY OF VIRGINIA BEACH, VIRGINIA By: City Manager Seen and agreed to: U.S. BANK NATIONAL ASSOCIATION, As Trustee By: Title: 10 • RECEIPT Receipt of the foregoing original counterpart of the Seventh Supplemental Support Agreement dated as of June 1, 2015, between the City of Virginia Beach Development Authority and the City of Virginia Beach, Virginia, is hereby acknowledged. U.S. BANK,NATIONAL ASSOCIATION, as Trustee By: Title: 11 City of Virginia Beach Development Authority Exhibit A Public Facility Revenue and Refunding Revenue Bond Schedule of Payments [PAYMENT SCHEDULE TO BE UPDATED] A-1 [TO BE REVISED AND UPDATED] EXHIBIT B • DESCRIPTION OF SERIES 2015 PROJECTS The following sets forth brief descriptions of the City projects to be financed in whole or in part with public facility revenue bonds ("PFRB") of the Authority, and the amount of each project to be financed with proceeds of the Public Facility Revenue Bonds, Series 2015A: Projects to be Financed with Public Facility Revenue Bonds Project/ Total Total PFRB Series Fund Project Name Description Programmed Planned 2015A Number Cost Financing Bonds 1-233 Consolidated Old This project is for the replacement of Old $63,360,000 $19,400,000 $16,133,850 Donation Donation Center and Kemps Landing Magnet Center/Kemps with a consolidated facility. Old Donation Landing Magnet Center, originally built in 1965, and Kemps Replacement Landing Magnet, built in 1957, can no longer adequately house the required instructional programs and the facilities are in need of replacement. This project will extend the useful life of the facility by 40 to 50 years. 2-025 Witchduck Road— This project will improve capacity needs and $55,179,915 $5,505,059 $3,919,196 Phase II mobility demands in this area of the City. Traffic volumes per day are anticipated to reach 64,000 by 2034. 2-033 Princess Anne Road This project is for the construction of safety $350,000 $250,000 $43,524 —Phase VIIA improvements on Princess Anne Road from Sand- bridge Road/Upton Dr. to Indian River Rd., including shoulder widening, additional. turn lanes,underground utility relocations and drainage improvements. 2-045 Pacific Avenue This project provides for the improvements to $20,000,000 $17,330,000 $7,713,767 Improvements Pacific Avenue between 15th Street and 23rd street within the existing right-of-way, to include undergrounding of existing overhead utilities and public utility upgrades. In addition, new LED street lighting and traffic light signal mast arms will be installed. B-1 Project/ Total Total PFRB Series Fund Project Name - Description Programmed Planned 2015A Number Cost Financing Bonds 2-07.2 First Colonial This project will improve the First Colonial $20,601,664 $3,409,085 $499,764 Road/Virginia Beach Rd/Va. Beach Blvd intersection with the Boulevard addition of turn lanes and traffic signalization Intersection improvements, widening areas of First Improvements Colonial Rd. from I-264 overpass to 1,000 feet south of Potters Road along Oceana Blvd from four lanes to six lanes. 2-195 Princess Anne Road This project is for construction of a four-lane $24,125,750 $4,762,324 $2,899,643 —Phase VIIA divided roadway with a bike path, from General Booth Blvd to Upton Dr., a distance of approximately 1.0 mile. Improvements at the intersections of General Booth Blvd,Elson Green Ave. and Upton Dr./Sandbridge Rd. are included as well as aesthetic upgrades. 2-401 Greenwich Road This is the first phase of overall eastbound I- $15,895,500 $2,474,741 $894,808 Crossover/Cleveland 264 interstate improvements that will relocate St.Improvements the existing Greenwich Road into the existing Cleveland Street/Clearfield Avenue intersection. This project will be designed and constructed in three phases. 2-409 Centerville Turnpike This project will provide two southbound $31,000,000 $10,869,000 $287,266 —Phase II lanes on Centerville Turnpike and Jake Sears Road to Broadwindsor Lane as well as triple left turn lane at intersection of Indian River Road and Centerville Turnpike. Part of a future six-lane section of the road way. 3-019 Adam Thoroughgood This project will expand the Adam $2,244,826 $1,981,657 $70,783 House Visitor Center Throughgood House site with the construction Construction of a 3,000 square foot building that will include ADA compliant public rest rooms, a small gift shop, a video viewing area for mobility impaired patrons, an office for staff, collections storage, and an exhibit/education space. 3-095 CIT-Police Integrated This project implements the Criminal Justice $10,401,389 $2,989,807 $209,417 Public Safety Record Automated Systems Analysis. It is an Management System integrated Public Safety Record Management System comprising mobile and electronic summons components and enhanced interfacing between the City's public safety agencies and State, Federal, and regional public safety systems. B-2 111 Proj ect/ Total Total PFRB Series Fund Project Name Description Programmed : Planned 2015A Number Cost Financing Bonds 3-137 Various Buildings This project provides rehabilitation and $12,243,329 $2,051,964 $943,753 Rehabilitation and renewal of interior and exterior systems for Renewal III City owned buildings/facilities. It addresses a backlog of original roofs,which were installed from 1968 to 1984. It excludes roofs for fire stations and parks and recreations facilities, which are included in separate projects. It includes rehabilitation and replacement of the Fire Training Center's existing facility and libraries. 3-142 CIT-Com Communications infrastructure including $34,573,605 $5,727,934 $10,693,134 Infrastructure radios, computer aided dispatch workstations, Replacement—Phase transmitter sites, public safety vehicle mobile II computer terminals and hardware. 3-200 Revenue Assessment This project provides for a comprehensive and $11,924,799 $2,446,720 $163,552 and Collection coordinated replacement of computer systems System currently used to support tax revenue and collection. 3-503 Housing Resource This project is to construct an approximately $22,795,591 $2,313,666 $287,994 Center 43,000 square foot Housing Resource Center that would provide shelter and services to homeless persons and those at risk of homelessness. In addition, some services may be available for the general community. 4-505 Bow Creek This project will fund the design and $25,123,023 $25,123,023 $3,530,192 Community Rec Ctr. construction costs required to tear down and rebuild the Bow Creek Community Recreation Center and relocate certain storage facilities on the current site. 4-506 Parks Infrastructure This project funds the implementation of $7,650,000 $1,000,000 $745,307 Renewal and renovations, replacements in all City Replacement signature,metro,and community parks as well. as special use sites totaling 1,100 acres throughout the City. 9-006 Winston-Salem This project will provide funding for design, $3,604,516 $865,000 $255,881 Avenue property acquisition and construction of a Improvements two-lane roadway with on-street parking and five feet wide sidewalks within a sixty foot right-of-way along Winston-Salem Ave. between Pacific Ave. and Mediterranean Ave. B-3 II Project/ Total Total PFRB Series Fund Project Name Description Programmed Planned 2015A Number Cost Financing Bonds 9-007 Resort Public Transit This project is for identification of sites and $250,000 $250,000 $156,612 Relocation development of a Hampton Road Transit (HRT) Bus Transfer Station consisting of two bus shelters located on about one-half acre of land, which will be relocated due to the development of the City owned site on 19`h St. and Pacific Ave. The project does not include the cost of property acquisitions,if required. 9-081 Strategic Growth This project will provide planning and design $17,674,686 $7,339,244 $1,670,232 Area Program services, build or replace public infrastructure improvements,and acquire property as needed in order to support implementation of the Strategic Growth Area plans. In addition, the project will provide for consulting and SGA related initiatives. Priorities for the SGA implementation plan include Burton Station Village design and construction, Form Based Zoning, Newtown SGA Plan, and Wesleyan Drive Improvements. 9-085 Burton Station Road This project will provide basic and long $3,250,000 $3,250,000 $35,363 Improvements-Ph II needed utility services and standard roadway improvements including curb and gutter, sidewalk and streetlights necessary to preserve and revitalize the existing residential community consistent with the phasing and implementation goals recommended in the adopted Burton Station/Northampton Boulevard Corridor Strategic Growth Area Implementation plan. 9-091 Burton Station Road The purpose of this project is to provide a $8,500,000 $8,500,000 $26,259 Improvements—Ph connection between Burton Station Road and III Air Rail Drive via an extension of Tolliver Road (formerly called Golf Course Road) to provide infrastructure necessary to promote future development consistent with the phasing and implementation goals recommended in the adopted Burton Station/Northampton Boulevard Corridor Strategic Growth Area Implementation plan. B-4 Project/ Total Total PFRB Series Fund Project Name Description Programmed Planned 2015A Number Cost Financing Bonds 9-096 Oceanfront Capital This project provides on-going funding to $4,200,000 $600,000 $270,452 Projects reinvest in various high impact capital projects Reinvestment at the oceanfront. The primary focus of the project is to replace Atlantic Ave., side streets, and boardwalk lighting with energy efficient attractive LED lighting. The Lighting replacements are planned in phases over 10 years and are roughly estimated at $5 million with annual amounts to be programmed at $450,000. 9-108 29th Street This project provides funding for $3,200,000 $3,200,000 $59,013 Improvements improvements to 29th St. in the Resort Area as a continuation of the Laskin Road Gateway Project. The project area is 29th St. from Artic to Pacific Ave. and includes streetscape improvements including wide sidewalks and street trees, a new street with improved drainage, and undergrounding of overhead utilities. TOTAL $477,451,561 $131,639,224 $51,509,762 B-5 111 EXHIBIT C CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY PUBLIC FACILITY REVENUE BOND ADMINISTRATIVE FEE SCHEDULE Administration Due Date Fee 12/1/15 $35,000.00 12/1/16 $35,000.00 12/1/17 $34,205.00 12/1/18 $29,222.50 12/1/19 $23,970.00 12/1/20 $18,430.00 12/1/21 $12,597.50 12/1/22 $6,455.00 12/1/23 $0.00 The administrative fee schedule set forth above supersedes all prior payment arrangements for the payment of administrative fees by the City of Virginia Beach to the Virginia Beach Development Authority in connection with the issuance of public facility revenue bonds by the Authority for the benefit of the City. The administrative fee schedule applies to all currently outstanding public facility revenue bonds and all public facility revenue bonds to be issued in the future. C-1 4849-9979-6515.3 B-2 II EIGHTH SUPPLEMENTAL AGREEMENT OF TRUST Between CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY And U.S. BANK NATIONAL ASSOCIATION, as successor Trustee Dated as of June 1, 2015 111 TABLE OF CONTENTS Parties 1 Recitals 1 Granting Clause 1 ARTICLE I EIGHTH SUPPLEMENTAL AGREEMENT Section 1-101. Authorization of Eighth Supplemental Agreement 2 Section 1-102. Definitions. 2 Section 1-103. Rules of Construction. 3 ARTICLE II AUTHORIZATION, DETAILS AND FORM OF SERIES 2015 BONDS Section 2-201. Authorization of Series 2015 Bonds. 4 Section 2-202. Details of Series 2015 Bonds. 4 Section 2-203. Form of Series 2015 Bonds. 5 Section 2-204. Securities Depository Provisions 5 Section 2-205. Delivery of Series 2015 Bonds. 6 ARTICLE III REDEMPTION OF SERIES 2015 BONDS Section 3-301. Redemption Date and Price. 6 Section 3-302. Selection of Series 2015 Bonds for Redemption. 7 Section 3-303. Notice of Redemption. 7 ARTICLE IV APPLICATION OF PROCEEDS OF SERIES 2015 BONDS Section 4-401. Application of Proceeds of Series 2015 Bonds. 8 ARTICLE V ESTABLISHMENT OF ACCOUNT Section 5-501. Series 2015 Project Account. 9 II Section 5-502. Series 2015B Refunding Account. 9 Section 5-503. Costs of Issuance Account. 9 ARTICLE VI SECURITY FOR SERIES 2015 BONDS Section 6-601. Security for Series 2015 Bonds. 9 ARTICLE VII MISCELLANEOUS Section 7-701. Limited on Use of Proceeds. 9 Section 7-702. Limitation of Right. 10 Section 7-703. Severability. 10 Section 7-704. Successors and Assigns. 10 Section 7-705. Applicable Law. 10 Section 7-707. Counterparts. 10 Exhibit A—Form of Series 2015A Bond A-1 Exhibit B—Form of Series 2015B Bond B-1 Exhibit C—Refunded Prior Bonds C-1 ii This EIGHTH SUPPLEMENTAL AGREEMENT OF TRUST dated as of June 1, 2015,by and between the CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Authority"), and U.S. BANK NATIONAL ASSOCIATION (as successor to Wachovia Bank, National Association), a national banking association, having a corporate trust office in Richmond, Virginia, as trustee in such capacity, together with any successor in such capacity, herein called the "Trustee"), provides: WHEREAS, the Authority is a political subdivision of the Commonwealth of Virginia duly created by Chapter 643 of the Virginia Acts of Assembly of 1964, as amended (the "Act"); and WHEREAS, the Authority and the Trustee have entered into an Agreement of Trust dated as of September 1, 2003 (the "Master Agreement of Trust"), as supplemented by the First Supplemental Agreement of Trust dated as of September 1, 2003, the Second Supplemental Agreement of Trust dated as of May 1, 2005, the Third Supplemental Agreement of Trust dated as of June 1, 2007, the Fourth Supplemental Agreement of Trust dated as of May 1, 2010, the Fifth Supplemental Agreement of Trust dated as of June 1, 2012, the Sixth Supplemental Agreement of Trust dated as of June 1, 2013 and the Seventh Supplemental Agreement of Trust dated as of June 1, 2014 pursuant to which the Authority has agreed to issue from time to time public facility revenue bonds or notes and use the proceeds thereof to finance costs incurred in connection with certain Projects (as hereinafter defined) for the benefit of the City of Virginia Beach, Virginia(the "City); and WHEREAS, within the limitations of and in compliance with the Master Agreement of Trust, the City has requested the Authority to issue public facility revenue bonds to finance the costs of the Series 2015 Projects (as hereinafter defined) and to refund for debt service savings certain of the Authority's Public Facility Revenue Bonds, Series 2007A previously issued by the Authority to assist the City in financing various public facilities; and WHEREAS, among the revenue bonds previously issued by the Authority, at the request of the City, there are currently outstanding the Authority's $9,000,000 Taxable Public Facility Revenue Bonds, Series 2005B, its $96,835,000 Public Facility Revenue Bonds, Series 2007A, its $4,030,000 Taxable Public Facility Revenue Bonds, Series 2007B, its $17,000,000 Public Facility Revenue Bonds, Series 2010A, its $98,035,000 Public Facility Refunding Revenue Bonds, Series 2010B, its $40,450,000 Public Facility Refunding Revenue Bonds, Series 2010C, its $22,580,000 Public Facility Revenue Bonds, Series 2012A, its $25,640,000 Public Facility Refunding Revenue Bonds, Series 2012B, its $20,960,000 Public Facility Revenue Bonds, Series 2013, its $44,975,000 Public Facility Revenue Bonds, Series 2014A and its $20,320,000 Public Facility Refunding Revenue Bonds, Series 2014B (collectively, the "Prior Public Facility Revenue Bonds"). WHEREAS, the Authority has agreed to issue its Public Facility Revenue Bonds, Series 2015A in the aggregate principal amount of $ , and its Public Facility Refunding Revenue Bonds, Series 2015B Bonds in the aggregate principal amount of$ , with each of such Series 2015 Bonds being secured by a pledge of the revenues and receipts derived from a Support Agreement dated as of September 1, 2003, as supplemented and amended by a First Supplemental Support Agreement dated as of May 1, 2005, a Second Supplemental Support Agreement dated as of June 1, 2007, a Third Supplemental Support Agreement dated as of May 1, 2010, a Fourth Supplemental Support Agreement dated as of June 1, 2012, a Fifth Supplemental Support Agreement dated as of June 1, 2013, a Sixth Supplemental Support Agreement dated as of June 1, 2014 and a Seventh Supplemental Support Agreement dated as of June 1, 2015 (collectively, the "Support Agreement"), between the Authority and the City, and the City has agreed, subject to the annual appropriation by the Council of the City, to make annual payments that will be sufficient to pay the principal of and premium, if any, and interest on such public facility revenue bonds as the same shall become due; and WHEREAS, the Authority has taken all necessary action to make the Series 2015 Bonds, when authenticated by the Trustee and issued by the Authority, valid and binding limited obligations of the Authority and to constitute this Eighth Supplemental Agreement of Trust (the "Eighth Supplemental Agreement") a valid and binding agreement authorizing and providing for the details of the Series 2015 Bonds; NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows: ARTICLE I EIGHTH SUPPLEMENTAL AGREEMENT Section 1-101. Authorization of Eighth Supplemental Agreement. This Eighth Supplemental Agreement is authorized and executed by the Authority and delivered to the Trustee pursuant to and in accordance with Articles III and X of the Master Agreement of Trust. All terms, covenants, conditions and agreements of the Master Agreement of Trust shall apply with full force and effect to the Series 2015 Bonds and to the holder thereof, except as otherwise provided in this Eighth Supplemental Agreement. Section 1-102. Definitions. Except as otherwise defined in this Eighth Supplemental Agreement, words defined in the Master Agreement of Trust are used in this Eighth Supplemental agreement with the meanings assigned to them in the Master Agreement of Trust. In addition, the following words shall have the following meanings unless a different meaning clearly appears from the context: "Eighth Supplemental Agreement" shall mean this Eighth Supplemental Agreement of Trust between the Authority and the Trustee, which supplements and amends the Master Agreement of Trust. "Escrow Deposit Agreement" means the Escrow Deposit Agreement dated as of June 2015 between the Authority and the Trustee in its capacity as escrow agent for the refunding of the Refunded Prior Bonds. 2 I III "Letter of Representations" shall mean the Blanket Letter of Representations dated July 11, 1997, from the Authority to the Securities Depository and any amendments thereto or successor agreements between the Authority and any successor Securities Depository with respect to the Series 2015 Bonds.Notwithstanding any provision of the Master Agreement of Trust, including Article X regarding amendments, the Trustee may enter into any such amendment or successor agreement without the consent of Bondholders. "Prior Public Facility Revenue Bonds" shall have the meaning given in the fourth paragraph of the recitals to this Eighth Supplemental Agreement. "Project" or "Projects" shall have the meaning set forth in the Support Agreement. "Refunded Prior Bonds" means the maturities of the Public Facility Revenue Bonds, Series 2007A described on Exhibit C to this Eighth Supplemental Agreement. "Securities Depository" shall mean The Depository Trust Company, a corporation organized and existing under the laws of the State of New York, and any other securities depository for the Series 2015 Bonds appointed pursuant to Section 2-204, and their successors. "Series 2015 Bonds" shall mean the Authority's $ Public Facility Revenue Bonds, Series 2015A and $ Public Facility Refunding Revenue Bonds, Series 2015B, authorized to be issued pursuant to this Eighth Supplemental Agreement. "Series 2015 Projects" shall mean have the meaning set forth in the Seventh Supplemental Support Agreement. "Series 2015 Project Account" shall mean the Series 2015 Project Account established in Section 4-501 of this Eighth Supplemental Agreement. "Seventh Supplemental Support Agreement" shall mean the Seventh Supplemental Support Agreement dated as of June 1, 2015 between the City and the Authority. Section 1-103. Rules of Construction. The following rules shall apply to the construction of this Eighth Supplemental Agreement unless the context otherwise requires: (a) Words importing the singular number shall include the plural number and vice versa. (b) Words importing the redemption or calling for redemption of Series 2015 Bonds shall not be deemed to refer to or connote the payment of Series 2015 Bonds at their stated maturity. (c) Unless otherwise indicated, all references herein to particular Articles or Sections are references to Articles or Sections of this Eighth Supplemental Agreement. 3 (d) The headings herein and Table of Contents to this Eighth Supplemental Agreement herein are solely for convenience of reference and shall not constitute a part of this Eighth Supplemental Agreement nor shall they affect its meaning, construction or effect (e) All references herein to payment of Series 2015 Bonds are references to payment of principal of and interest on the Series 2015 Bonds. ARTICLE II AUTHORIZATION, DETAILS AND FORM OF SERIES 2015 BONDS Section 2-201. Authorization of Series 2015 Bonds. There are hereby authorized to be issued Public Facility Revenue Bonds, Series 2015A in the aggregate principal amount of$ and Public Facility Refunding Revenue Bonds, Series 2015B in the aggregate principal amount of $ , the proceeds of which to be applied in accordance with Article IV hereof to finance the costs of the Series 2015 Projects; refund the Refunded Prior Bonds; and pay costs incident to issuing the Series 2015 Bonds. Section 2-202. Details of Series 2015 Bonds. (a) The Series 2015A Bonds shall be designated "Public Facility Revenue Bonds, Series 2015A," shall be the date of their delivery, shall be issuable only as fully registered bonds in denominations of $5,000 and integral multiples thereof and shall be numbered R-1 upward. The Series 2015A Bonds shall bear interest at rates, payable semiannually on each March 1 and September 1, beginning March 1, 2016, and shall mature in installments on March 1 in years and amounts, as follows: Year Amount Rate Year Amount Rate 2016 2026 2017 2027 2018 2028 2019 2029 2020 2030 2021 2031 2022 2032 2023 2033 2024 2034 2025 2035 (b) The Series 2015B Bonds shall be designated "Public Facility Refunding Revenue Bonds, Series 2015B," shall be the date of their delivery, shall be issuable only as fully registered bonds in denominations of $5,000 and integral multiples thereof and shall be numbered R-1 upward. The Series 2015B Bonds shall bear interest at rates, payable 4 semiannually on each January 15 and July 15, beginning January 15, 2016, and shall mature in installments on July 15 in years and amounts, as follows: Year Amount Rate Year Amount Rate 2019 2025 2020 2026 2021 2027 2024 (c) Each Series 2015 Bond shall bear interest (a) from its date, if such Series 2015 Bond is authenticated prior to the first interest payment date, or (b) otherwise from the interest payment date that is, or immediately precedes, the date on which such Series 2015 Bond is authenticated; provided, however, that if at the time of authentication of any Series 2015 Bond shall bear interest from the date to which interest has been paid. Interest shall be calculated on the basis of a 360-day year of twelve 30-day months. (d) Principal of the Series 2015 Bonds shall be payable to the registered holder(s) upon the surrender of Series 2015 Bonds at the corporate trust office of the Trustee in Richmond, Virginia. Interest on the Series 2015 Bonds shall be payable by check or draft mailed to the registered owners at their addresses as they appear on the registration books kept by the Trustee on the fifteenth day of the month preceding each interest payment date; provided, however, if the Series 2015 Bonds are registered in the name of a Securities Depository or its nominee as registered holder or at the option of a registered holder(s) of at least $1,000,000 of Series 2015 Bonds, payment shall be made by wire transfer pursuant to the wire instructions received by the Trustee from such registered holder(s). If the nominal date for making any payment on the Series 2015 Bonds is not a Business Day, the payment may be made on the next Business Day with the same effect as if made on the nominal date, and no additional interest shall accrue between the nominal date and the actual payment date. Principal and interest shall be payable in lawful money of the United States of America. Section 2-203. Form of Series 2015 Bonds. The Series 2015A Bonds shall be in substantially the form set forth in Exhibit A and the Series 2015B Bonds shall be in substantially the form set forth in Exhibit B, with such appropriate variations, omissions and insertions as are permitted or required by the Master Agreement of Trust and this Eighth Supplemental Agreement Section 2-204. Securities Depository Provisions Initially, one certificate for each maturity of each Series of the Series 2015 Bonds will be issued and registered to the Securities Depository, or its nominee. The Authority has entered into a Letter of Representations relating to a book-entry system to be maintained by the Securities Depository with respect to the Series 2015 Bonds. In the event that (a) the securities Depository determines not to continue to act as a securities depository for the Series 2015 Bonds by giving notice to the Trustee and the Authority 5 discharging its responsibilities hereunder or (b) the Authority, at the direction of the City, determines (1) that beneficial owners of Series 2015 Bonds shall be able to obtain certificated Series 2015 Bonds or (2) to select a new Securities Depository, then the Trustee shall, at the direction of the authority, attempt to locate another qualified securities depository to serve as Securities Depository or authenticate and deliver certificated Series 2015 Bonds to the beneficial owners or to the Securities Depository participants on behalf of beneficial owners substantially in the form provided for in Exhibit A or Exhibit B, as applicable; provided, however, that such form shall provide for interest on the Series 2015 Bonds to be payable (i) from its dated date if it is authenticated prior to the first interest payment date or (ii) otherwise from the interest payment date that is, or immediately precedes, the date on which it is authenticated (unless payment of interest thereon is in default, in which case interest on such Series 2015 Bonds shall be payable from the date to which interest has been paid). In delivering certificated Series 2015 Bonds, the Trustee shall be entitled to rely conclusively on the records of the Securities Depository as to the beneficial owners or the records of the Securities Depository participants acting on behalf of beneficial owners. Such certificated Series 2015 Bonds will be registerable, transferable and exchangeable as set forth in Section 204 and 205 of the Master Agreement of Trust. So long as there is a Securities Depository for the Series 2015 Bonds (A) it or its nominee shall be the registered holder(s) of the Series 2015 Bonds, (B) notwithstanding anything to the contrary in this Eighth Supplemental Agreement, determinations of persons entitled to payment of principal and interest, transfers of ownership and exchanges and receipt of notices shall be the responsibility of the Securities Depository and shall be effected pursuant to rules and procedures established by such Securities Depository, (C) the Authority and the Trustee shall not be responsible or liable for maintaining, supervising or reviewing the records maintained by the Securities Depository, its participants or persons acting through such participants, (D) references in this Eighth Supplemental Agreement to registered holder(s) of the Series 2015 Bonds shall mean such Securities Depository or its nominee and shall not mean the beneficial owners of the Series 2015 Bonds and (E) in the event of any inconsistency between the provisions of this Eighth Supplemental Agreement, other than those set forth in this paragraph and the preceding paragraph, and the provisions of the Letter of Representations such provisions of the Letter of Representations shall control. Section 2-205. Delivery of Series 2015 Bonds. The Trustee shall authenticate and deliver the Series 2015 Bonds when there have been filed with or delivered to it all items required by Section 303 of the Master Agreement of Trust. ARTICLE III REDEMPTION OF SERIES 2015 BONDS Section 3-301. Redemption Date and Price. Optional Redemption. The Series 2015A Bonds may not be called for redemption by the Authority except as follows. The Series 2015A Bonds maturing on or after March 1, 2026 may be redeemed by the Authority, at the direction of the City, on or after March 1, 2025, in whole or in part at any time (in increments of $5,000), at a redemption price of 100% of the principal 6 amount, or portion thereof, of Series 2015A Bonds to be redeemed plus interest accrued to the redemption date. The Series 2015B Bonds may not be called for redemption by the Authority except as follows. The Series 2015B Bonds maturing on or after July 15, 2026 may be redeemed by the Authority, at the direction of the City, on or after July 15, 2025, in whole or in part at any time (in increments of $5,000), at a redemption price of 100% of the principal amount, or portion thereof, of Series 2015B Bonds to be redeemed plus interest accrued to the redemption date. Section 3-302. Selection of Series 2015 Bonds for Redemption. If less than all of the Series 2015 Bonds are called for redemption, the maturities of the Series 2015 Bonds to be redeemed shall by selected by the Authority as directed by the City. If less than all of a particular maturity of the Series 2015 Bonds are called for redemption, the Series 2015 Bonds to be redeemed shall be selected by the Securities Depository or any successor securities depository pursuant to its rules and procedures or, if the book-entry system is discontinued, shall be selected by the Trustee by lot in such manner as the Trustee in its discretion may determine. The portion of any Series 2015 Bond to be redeemed shall be in the principal amount of $5,000 or some multiple thereof. In selecting Series 2015 Bonds for redemption, each Series 2015 Bond shall be considered as representing that number of Series 2015 bonds which is obtained by dividing the principal amount of such Series 2015 Bonds by $5,000. If a portion of a Series 2015 Bond shall be called for redemption, a new Series 2015 Bond in principal amount equal to the unredeemed portion thereof shall be issued to the registered owner upon the surrender thereof. Section 3-303. Notice of Redemption. The Trustee, upon being satisfied as to the payment of its expenses and upon receiving the notice of redemption from the Authority not less than 45 days prior to the redemption date, shall send notice of the call for redemption, identifying the Series 2015 Bonds or portions thereof to be redeemed, not less than 30 nor more than 60 days prior to the redemption date, (a) by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to DTC, or if DTC is no longer serving as securities depository for the Series 2015 Bonds, to the substitute securities depository, or if no securities depository exists, to the respective holders of each Series 2015 Bond to be redeemed at his address as it appears on the registration books kept by the Trustee, (b) by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to all organizations registered with the Securities and Exchange Commission as securities depositories and (c) to each nationally recognized municipal securities information repository designated as such by the Securities and Exchange Commission. In preparing and delivering such notice, the Trustee shall take into account, to the extent applicable, the prevailing tax-exempt securities industry standards and any regulatory statement of any federal or state administrative board having jurisdiction over the Authority or the tax-exempt securities industry, including Release No. 34-23856 of the Securities and Exchange Commission or any subsequent amending or superseding release. Failure to give any notice specified in (a) above, or any defect therein, shall not affect the validity of any proceedings for the redemption of any Series 2015 Bond with respect to which no such failure or defect has occurred. Failure to give any notice specified in (b) or (c) above, or any defect herein, shall not affect the validity of 7 any proceedings for the redemption of any Series 2015 Bonds with respect to which the notice specified in (a) above is correctly given. Any notice mailed or provided herein shall conclusively be presumed to have been given whether or not actually received by any Series 2015 Bondholder. In the case of an optional redemption, the notice may state that (1) it is conditioned upon the deposit of moneys, in an amount equal to the amount necessary to effect the redemption, with the Trustee no later than the redemption date or (2) the Authority, as directed by the City, retains the right to rescind such notice on or prior to the scheduled redemption date (in either case, a "Conditional Redemption"), and such notice and optional redemption shall be of no effect if such moneys are not so deposited or if the notice is rescinded as described herein. Any Conditional Redemption in (2) above may be rescinded at any time prior to the redemption date if the Authority delivers a written direction to the Trustee directing the Trustee to rescind the redemption notice and any funds deposited with the Trustee in connection with such rescinded redemption shall be returned to the City. The Trustee shall give prompt notice of such rescission to the affected Series 2015 Bondholders. Any Series 2015 Bonds subject to Conditional Redemption where redemption has been rescinded shall remain Outstanding, and the rescission shall not constitute an Event of Default. Further, in the case of Conditional Redemption, the failure of the Authority to make funds available on or before the redemption date shall not constitute an Event of Default, and the Trustee shall give immediate notice to all organizations registered with the Securities and Exchange Commission as securities depositories or the affected Series 2015 Bondholders that the redemption did not occur and that the Series 2015 Bonds called for redemption and not so paid remain outstanding. ARTICLE IV APPLICATION OF PROCEEDS OF SERIES 2015 BONDS Section 4-401. Application of Proceeds of Series 2015 Bonds. (a) The proceeds of the Series 2015A Bonds in the amount of$ shall be deposited into the Series 2015 Project Account in the Project Fund, including the good faith deposit ($ ) previously received by the City from the purchaser of the Series 2015A Bonds. [Such amount shall be transferred upon receipt by the Trustee to [the City in accordance with instructions provided by the City] [the Virginia State Non-Arbitrage Program] unless otherwise directed by the City.] (b) The proceeds of the Series 2015B Bonds in the amount of$ shall be deposited by the Trustee upon receipt under the Escrow Deposit Agreement for which the Trustee serves as escrow agent to effect the refunding of the Refunded Prior Bonds. (c) The remaining balance of the Series 2015 Bonds ($ ) shall be applied by the City to Costs of Issuance of the Series 2015 Bonds or to additional project costs. 8 ARTICLE V ESTABLISHMENT OF ACCOUNT Section 5-501. Series 2015 Project Account. There shall be established within the Project Fund a special account entitled "Series 2015 Project Account" to be funded as specified in Section 4-401(a). Money in the Series 2015 Project Account shall be used in accordance with the provisions of Section 503 of the Master Agreement of Trust to pay or reimburse 2015 Project costs. Section 5-502. Series 2015B Refunding Account. There shall be established a special account entitled "Series 2015B Refunding Account." The portion of the proceeds of the Series 2015B Bonds specified in Section 4-401(b) shall be deposited by the Trustee under the Escrow Deposit Agreement and accounted for within such refunding account. Section 5-503. Costs of Issuance Account. There is hereby established in the Project Fund a "Series 2015 Bond Costs of Issuance Account" into which the proceeds of the Series 2015A Bonds and Series 2015B Bonds specified in Section 4-401(c) shall be deposited. Such account will be used to pay issuance costs of the Series 2015 Bonds or applied to pay or reimburse 2015 Project or capital costs. ARTICLE VI SECURITY FOR SERIES 2015 BONDS Section 6-601. Security for Series 2015 Bonds. The Series 2015 Bonds shall be equally and ratably secured under the Master Agreement of Trust with the Authority's Prior Public Facility Revenue Bonds and any other series of public facility revenue bonds issued pursuant to Article III of the Master Agreement of Trust, without preference, priority or distinction of any Bonds over any other Bonds, except as provided in the Master Agreement of Trust. ARTICLE VII MISCELLANEOUS Section 7-701. Limited on Use of Proceeds. The Authority intends that interest on the Series 2015 Bonds shall be excluded from gross income for Federal income tax purposes. The Authority covenants with the holders of the Series 2015 Bonds not to take any action that would adversely affect, and to take all action within its power necessary to maintain, the exclusion of interest on all Series 2015 Bonds from gross income for Federal income taxation purposes. 9 Section 7-702. Limitation of Right. With the exception of rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Eighth Supplemental Agreement or the Series 2015 Bonds is intended or shall be construed to give to any person other than the parties hereto and the holders of Series 2015 Bonds any legal or equitable right, remedy or claim under or in respect to this Eighth Supplemental Agreement or any covenants, conditions and agreements herein contained since this Eighth Supplemental Agreement and all of the covenants, conditions and agreements hereof are intended to be and are for the sole and exclusive benefit of the parties hereto and the holders of Bonds as herein provided. Section 7-703. Severability. If any provision of this Eighth Supplemental Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not invalidate any other provision hereof and this Eighth Supplemental Agreement shall be construed and enforced as if such illegal provision had not been contained herein. Section 7-704. Successors and Assigns. This Eighth Supplemental Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. Section 7-705. Applicable Law. This Eighth Supplemental Agreement shall be governed by the applicable laws of the Commonwealth of Virginia. Section 7-706. Patriot Act Compliance. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a Trust or other legal entity the Trustee will ask for documentation to verify its formation and existence as a legal entity. The Trustee may also ask to see financial statements, licenses, identification, and authorization documents from individuals claiming authority to represent the entity or other relevant documentation. Section 7-707. Counterparts. This Eighth Supplemental Agreement may be executed in several counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 10 IN WITNESS WHEREOF, the Authority and the Trustee have caused this Eighth Supplemental Agreement to be executed in their respective corporate names as of the date first above written. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY By: U.S. BANK NATIONAL ASSOCIATION, As Trustee By: Title: Acknowledged and Consented To: CITY OF VIRGINIA BEACH,VIRGINIA, By: Title: 11 EXHIBIT A Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer, exchange, or payment, and any certificate is registered in the name of Cede & Co., or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. REGISTERED REGISTERED R-1 $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY Public Facility Revenue Bond, Series 2015A INTEREST RATE MATURITY DATE DATED DATE CUSIP March 1, June_, 2015 92774G REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS The City of Virginia Beach Development Authority, a political subdivision of the Commonwealth of Virginia (the "Authority"), for value received, hereby promises to pay upon surrender hereof at the principal corporate trust office of U.S. Bank National Association (successor to Wachovia Bank, National Association), Richmond, Virginia, as trustee, or its successor in trust (the "Trustee"), under the Agreement of Trust (as hereinafter defined) solely from the source and as hereinafter provided, to the registered owner hereof, or registered assigns or legal representative, the principal sum stated above on the maturity date stated above, subject to prior redemption as hereinafter provided, and to pay, solely from such source, interest hereon on each March 1 and September 1, beginning March 1, 2016 at the annual rate stated above, calculated on the basis of a 360-day year of twelve 30-day months. Interest is payable (a) from June , 2015, if this bond is authenticated prior to March 1, 2016, or (b) otherwise from the March 1 or September 1 that is, or immediately precedes, the date on which this bond is authenticated (unless payment of interest hereon is in default, in which case this bond shall bear A-1 interest from the day to which interest has been paid). Interest is payable by check or draft mailed to the registered owner hereof at its address as it appears on the fifteenth day of the month preceding each interest payment date on registration books kept by the Trustee; provided, however, that at the option of a registered owner of at least $1,000,000 of Bonds (as hereinafter defined), payment will be made by wire transfer pursuant to the most recent wire instructions received by the Trustee from such registered owner. If the nominal date for making any payment on this bond is a Business Day (as hereinafter defined), the payment may be made on the next Business Day with the same effect as if made on the nominal date, and no additional interest shall accrue between the nominal date and the actual payment date. Principal and interest are payable in lawful money of the United States of America. "Business Day" shall mean a day on which banking business is transacted, but not including a Saturday, Sunday or legal holiday, or any day on which banking institutions are authorized by law to close in the city in the Commonwealth of Virginia in which the Trustee has its principal corporate trust office. Notwithstanding any other provision hereof, this bond is subject to book-entry form maintained by the Depository Trust Company ("DTC"), and the payment of principal and interest, the providing of notices and other matters shall be made as described in the Authority's Letter or Representations to DTC. This bond is one of an issue of$ Public Facility Revenue Bonds, Series 2015A and $ Public Facility Refunding Revenue Bonds, Series 2015B (collectively, the "Bonds"), authorized and issued pursuant to Chapter 643 of the Virginia Acts of Assembly of 1964, as amended. The Bonds are issued under and secured by an Agreement of Trust dated as of September 1, 2003, between the Authority and the Trustee, as supplemented by a First Supplemental Agreement of Trust dated as of September 1, 2003, a Second Supplemental Agreement of Trust dated as of May 1, 2005, a Third Supplemental Agreement of Trust dated as of June 1, 2007, a Fourth Supplemental Agreement of Trust dated as of May 1, 2010, a Fifth Supplemental Agreement of Trust dated as of June 1, 2012, a Sixth Supplemental Agreement of Trust dated as of June 1, 2013, a Seventh Supplemental Agreement of Trust dated as of June 1, 2014 and an Eighth Supplemental Agreement of Trust dated as of June 1, 2015 (collectively, the "Agreement of Trust"). The Agreement of Trust assigns to the Trustee, as security for the Bonds, (a) the revenues and receipts derived from a Support Agreement dated as of September 1, 2003, as supplemented and amended by a First Supplemental Support Agreement dated as of May 1, 2005, a Second Supplemental Support Agreement dated as of June 1, 2007, a Third Supplemental Support Agreement dated as of May 1, 2010, a Fourth Supplemental Support Agreement dated as of June 1, 2012, a Fifth Supplemental Support Agreement dated as of June 1, 2013, a Sixth Supplemental Support Agreement dated as of June 1, 2014 and a Seventh Supplemental Support Agreement dated as of June 1, 2015 (collectively, the "Support Agreement"), each between the Authority and the City of Virginia Beach, Virginia (the "City"), and (b) the Authority's rights under the Support Agreement (except for the Authority's rights under the Support Agreement to the payment of certain fees and expenses and the rights to notices). Reference is hereby made to the Agreement of Trust for a description of the provisions, among others, with respect to the nature and extent of the security, the rights, duties and obligations of the Authority and the Trustee, the rights of the holders of the Bonds and the terms upon which the Bonds are issued and secured. The Bonds are equally and ratably secured on a A-2 I I parity basis with the Authority's $9,000,000 Taxable Public Facility Revenue Bonds, Series 2005B, its $96,835,000 Public Facility Revenue Bonds, Series 2007A, its $4,030,000 Taxable Public Facility Revenue Bonds, Series 2007B, its $17,000,000 Public Facility Revenue Bonds, Series 2010A, its $98,035,000 Public Facility Refunding Revenue Bonds, Series 2010B, its $40,450,000 Public Facility Refunding Revenue Bonds, Series 2010C, its $22,580,00 Public Facility Revenue Bonds, Series 2012A, its $25,640,000 Public Facility Refunding Revenue Bonds, Series 2012B, its $20,960,000 Public Facility Revenue Bonds, Series 2013A, its $44,975,000 Public Facility Revenue Bonds, Series 2014A and its $20,320,000 Public Facility Refunding Revenue Bonds, Series 2014B (collectively, the "Parity Bonds"). Additional bonds secured by a pledge of revenues and receipts derived from the City under the Support Agreement on a parity with the Bonds and the Parity Bonds may be issued under the terms and conditions set forth in the Agreement of Trust. Terms not otherwise defined herein shall have the meaning assigned such terms in the Agreement of Trust. The Bonds are issued to finance the acquisition, construction and equipping of various capital improvements for the City and to refund certain of the Parity Bonds. Under the Support Agreement, the City has agreed to make payments that will be sufficient to pay the principal of and interest on the Bonds as the same shall become due in accordance with their terms and the provisions and the terms of the Agreement of Trust. The undertaking by the City to make payments under the Support Agreement does not constitute a debt of the City within the meaning of any constitutional or statutory limitation nor a liability of or a lien or charge upon funds or property of the City beyond any fiscal year for which the City has appropriated moneys to make such payments. THE BONDS AND THE INTEREST THEREON ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM REVENUES AND RECEIPTS DERIVED FROM THE CITY RECEIVED BY THE AUTHORITY UNDER THE SUPPORT AGREEMENT, AND FROM CERTAIN FUNDS, AND THE INVESTMENT INCOME THEREON, HELD UNDER THE AGREEMENT OF TRUST, WHICH REVENUES, RECEIPTS AND FUNDS HAVE BEEN PLEDGED AND ASSIGNED TO SECURE PAYMENT THEREOF. THE BONDS AND INTEREST THEREON SHALL NOT BE DEEMED TO CONSTITUTE A GENERAL OBLIGATION DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY. NEITHER THE COMMONWEALTH OF VIRGINIA NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY, SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF OR INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO EXCEPT FROM THE REVENUES AND RECEIPTS PLEDGED AND ASSIGNED THEREFORE, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COMMONWEALTH OF VIRGINIA, OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO. THE AUTHORITY HAS NO TAXING POWER. No covenant, condition or agreement contained herein shall be deemed to be a covenant, agreement or obligation of any present or future director, officer, employee or agent of the Authority in its individual capacity, and neither the Chairman of the Authority nor any officer A-3 thereof executing this bond shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. The Bonds may not be called for redemption by the Authority except as provided herein and in the Agreement of Trust. The Bonds maturing on or after March 1, 2026, may be redeemed prior to their respective maturities on or after March 1, 2025, at the option of the Authority, at the direction of the City, in whole or in part at any time at a redemption price of 100% of the principal amount, or portion thereof, of Bonds to be redeemed plus interest accrued to the redemption date. If less than all the Bonds are called for redemption, they shall be redeemed from maturities in such order as determined by the Authority,at the direction of the City. If less than all of the Bonds of any maturity are called for redemption, the Bonds to be redeemed shall be selected by DTC or any successor securities depository pursuant to its rules and procedures or, if the book-entry system is discontinued, shall be selected by the Trustee by lot in such manner as the Trustee in its discretion may determine. The portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof. In selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by$5,000. If any of the Bonds or portions thereof are called for redemption, the Trustee shall send notice of the call for redemption, identifying the Bonds or portions thereof to be redeemed, not less than 30 nor more than 60 days prior to the redemption date, by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to the registered owner of the Bonds. Such notice may state that (1) it is conditioned upon the deposit of moneys, in an amount equal to the amount necessary to effect the redemption, with the Trustee no later than the redemption date or (2) the Authority retains the right to rescind such notice on or prior to the scheduled redemption date, and such notice and option redemption shall be of no effect if such moneys are not so deposited or if the notice is rescinded. Provided funds for their redemption are on deposit at the place of payment on the redemption date, all Bonds or portions thereof so called for redemption shall cease to bear interest on such date, shall no longer be secured by the Agreement of Trust and shall not be deemed to be Outstanding under the provisions of the Agreement of Trust. If a portion of this bond shall be called for redemption, a new bond in principal amount equal to the unredeemed portion hereof will be issued to DTC or its nominee upon surrender hereof, or if the book-entry system is discontinued, to the registered owners of this bond. The registered owner of this bond shall have no right to enforce the provisions of the Agreement of Trust or to institute action to enforce the covenants therein or to take any action with respect to any Event of Default under the Agreement of Trust or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Agreement of Trust. Modifications or alterations of the Agreement of Trust or the Support Agreement, or of any supplement thereto, may be made only to the extent and in the circumstances permitted by the Agreement of Trust. A-4 The Bonds are issuable as registered bonds in the denomination of $5,000 and integral multiples thereof. Upon surrender for transfer or exchange of this bond at the corporate trust office of the Trustee in Richmond, Virginia, together with an assignment duly executed by the registered owner or its duly authorized attorney or legal representative in such form as shall be satisfactory to the Trustee, the Authority shall execute, and the Trustee shall authenticate and deliver in exchange, a new bond or bonds in the manner and subject to the limitations and conditions provided in the Agreement of Trust, having an equal aggregate principal amount, in authorized denominations, of the same series form and maturity, bearing interest at the same rate and registered in the name or names as requested by the then registered owner hereof or its duly authorized attorney or legal representative. Any such exchange shall be at the expense of the Authority, except that the Trustee may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Trustee shall treat the registered owner as the person exclusively entitled to payment of principal and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as holder on the fifteenth day of the month preceding each interest payment date. All acts conditions and things required to happen, exist or be performed precedent to and in the issuance of this bond have happened, exist and have been performed. This bond shall not become obligatory for any purpose or be entitled to any security or benefit under the Agreement of Trust or be valid until the Trustee shall have executed the Certificate of Authentication appearing hereon and inserted the date of authentication hereon. IN WITNESS WHEREOF, the City of Virginia Beach Development Authority has caused this bond to be signed by its Chairman, its seal to be imprinted hereon and attested by its Secretary, and this bond to be dated the date first above written. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY (SEAL) By Chairman Attest: Secretary A-5 CERTIFICATE OF AUTHENTICATION Date Authenticated: June , 2015 This bond is one of the Series 2015 Bonds described in the within mentioned Agreement of Trust. U.S. BANK NATIONAL ASSOCIATION, as Trustee By Authorized Officer A-6 i Ili • ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto (please print or typewrite name and address, including zip code, of Transferee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE • • • • • • The within Bond and all rights thereunder, hereby irrevocably constituting and appointing , Attorney, to transfer said Bond on the books kept for the registration thereof, with full power of substitution in the premises. Date: Signature Guaranteed NOTICE: Signature(s) must be guaranteed (Signature of Registered Owner) by an Eligible Guarantor Institution such as a Commercial Bank, Trust Company, NOTICE: The signature above must Securities Broker/Dealer, Credit Union, correspond with the name of the or Savings Association who is a member registered owner as it appears on the of a medallion program approved by The front of this bond in every particular, Securities Transfer Association, Inc. without alteration or enlargement or any change whatsoever. A-7 II EXHIBIT B Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the issuer or its agent for registration of transfer, exchange, or payment, and any certificate is registered in the name of Cede & Co., or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. REGISTERED REGISTERED R-1 $ UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY Public Facility Refunding Revenue Bond, Series 2015B INTEREST RATE MATURITY DATE DATED DATE CUSIP 0/0 July 15, June_, 2015 92774G REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: DOLLARS The City of Virginia Beach Development Authority, a political subdivision of the Commonwealth of Virginia (the "Authority"), for value received, hereby promises to pay upon surrender hereof at the principal corporate trust office of U.S. Bank National Association (successor to Wachovia Bank, National Association), Richmond, Virginia, as trustee, or its successor in trust (the "Trustee"), under the Agreement of Trust (as hereinafter defined) solely from the source and as hereinafter provided, to the registered owner hereof, or registered assigns or legal representative, the principal sum stated above on the maturity date stated above, subject to prior redemption as hereinafter provided, and to pay, solely from such source, interest hereon on each January 15 and July 15, beginning January 15, 2016 at the annual rate stated above, calculated on the basis of a 360-day year of twelve 30-day months. Interest is payable (a) from June , 2015, if this bond is authenticated prior to January 15, 2016, or (b) otherwise from the January 15 or July 15 that is, or immediately precedes, the date on which this bond is authenticated (unless payment of interest hereon is in default, in which case this bond shall bear B-1 interest from the day to which interest has been paid). Interest is payable by check or draft mailed to the registered owner hereof at its address as it appears on the fifteenth day of the month preceding each interest payment date on registration books kept by the Trustee; provided, however, that at the option of a registered owner of at least $1,000,000 of Bonds (as hereinafter defined), payment will be made by wire transfer pursuant to the most recent wire instructions received by the Trustee from such registered owner. If the nominal date for making any payment on this bond is a Business Day (as hereinafter defined), the payment may be made on the next Business Day with the same effect as if made on the nominal date, and no additional interest shall accrue between the nominal date and the actual payment date. Principal and interest are payable in lawful money of the United States of America. "Business Day" shall mean a day on which banking business is transacted, but not including a Saturday, Sunday or legal holiday, or any day on which banking institutions are authorized by law to close in the city in the Commonwealth of Virginia in which the Trustee has its principal corporate trust office. Notwithstanding any other provision hereof, this bond is subject to book-entry form maintained by the Depository Trust Company ("DTC"), and the payment of principal and interest, the providing of notices and other matters shall be made as described in the Authority's Letter or Representations to DTC. This bond is one of an issue of $ Public Facility Revenue Bonds, Series 2015A and $ Public Facility Refunding Revenue Bonds, Series 2015B (collectively, the "Bonds"), authorized and issued pursuant to Chapter 643 of the Virginia Acts of Assembly of 1964, as amended. The Bonds are issued under and secured by an Agreement of Trust dated as of September 1, 2003, between the Authority and the Trustee, as supplemented by a First Supplemental Agreement of Trust dated as of September 1, 2003, a Second Supplemental Agreement of Trust dated as of May 1, 2005, a Third Supplemental Agreement of Trust dated as of June 1, 2007, a Fourth Supplemental Agreement of Trust dated as of May 1, 2010, a Fifth Supplemental Agreement of Trust dated as of June 1, 2012, a Sixth Supplemental Agreement of Trust dated as of June 1, 2013, a Seventh Supplemental Agreement of Trust dated as of June 1, 2014 and an Eighth Supplemental Agreement of Trust dated as of June 1, 2015 (collectively, the "Agreement of Trust"). The Agreement of Trust assigns to the Trustee, as security for the Bonds, (a) the revenues and receipts derived from a Support Agreement dated as of September 1, 2003, as supplemented and amended by a First Supplemental Support Agreement dated as of May 1, 2005, a Second Supplemental Support Agreement dated as of June 1, 2007, a Third Supplemental Support Agreement dated as of May 1, 2010, a Fourth Supplemental Support Agreement dated as of June 1, 2012, a Fifth Supplemental Support Agreement dated as of June 1, 2013, a Sixth Supplemental Support Agreement dated as of June 1, 2014 and a Seventh Supplemental Support Agreement dated as of June 1, 2015 (collectively, the "Support Agreement"), each between the Authority and the City of Virginia Beach, Virginia (the "City"), and (b) the Authority's rights under the Support Agreement (except for the Authority's rights under the Support Agreement to the payment of certain fees and expenses and the rights to notices). Reference is hereby made to the Agreement of Trust for a description of the provisions, among others, with respect to the nature and extent of the security, the rights, duties and obligations of the Authority and the Trustee, the rights of the holders of the Bonds and the terms upon which the Bonds are issued and secured. The Bonds are equally and ratably secured on a B-2 III parity basis with the Authority's $9,000,000 Taxable Public Facility Revenue Bonds, Series 2005B, its $96,835,000 Public Facility Revenue Bonds, Series 2007A, its $4,030,000 Taxable Public Facility Revenue Bonds, Series 2007B, its $17,000,000 Public Facility Revenue Bonds, Series 2010A, its $98,035,000 Public Facility Refunding Revenue Bonds, Series 2010B, its $40,450,000 Public Facility Refunding Revenue Bonds, Series 2010C, its $22,580,00 Public Facility Revenue Bonds, Series 2012A, its $25,640,000 Public Facility Refunding Revenue Bonds, Series 2012B, its $20,960,000 Public Facility Revenue Bonds, Series 2013A, its $44,975,000 Public Facility Revenue Bonds, Series 2014A and its $20,320,000 Public Facility Refunding Revenue Bonds, Series 2014B (collectively, the "Parity Bonds"). Additional bonds secured by a pledge of revenues and receipts derived from the City under the Support Agreement on a parity with the Bonds and the Parity Bonds may be issued under the terms and conditions set forth in the Agreement of Trust. Terms not otherwise defined herein shall have the meaning assigned such terms in the Agreement of Trust. The Bonds are issued to finance the acquisition, construction and equipping of various capital improvements for the City and to refund certain of the Parity Bonds. Under the Support Agreement, the City has agreed to make payments that will be sufficient to pay the principal of and interest on the Bonds as the same shall become due in accordance with their terms and the provisions and the terms of the Agreement of Trust. The undertaking by the City to make payments under the Support Agreement does not constitute a debt of the City within the meaning of any constitutional or statutory limitation nor a liability of or a lien or charge upon funds or property of the City beyond any fiscal year for which the City has appropriated moneys to make such payments. THE BONDS AND THE INTEREST THEREON ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM REVENUES AND RECEIPTS DERIVED FROM THE CITY RECEIVED BY THE AUTHORITY UNDER THE SUPPORT AGREEMENT, AND FROM CERTAIN FUNDS, AND THE INVESTMENT INCOME THEREON, HELD UNDER THE AGREEMENT OF TRUST, WHICH REVENUES, RECEIPTS AND FUNDS HAVE BEEN PLEDGED AND ASSIGNED TO SECURE PAYMENT THEREOF. THE BONDS AND INTEREST THEREON SHALL NOT BE DEEMED TO CONSTITUTE A GENERAL OBLIGATION DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE COMMONWEALTH OF VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY. NEITHER THE COMMONWEALTH OF VIRGINIA NOR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY, SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF OR INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO EXCEPT FROM THE REVENUES AND RECEIPTS PLEDGED AND ASSIGNED THEREFORE, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COMMONWEALTH OF VIRGINIA, OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE AUTHORITY AND THE CITY, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE BONDS OR OTHER COSTS INCIDENT THERETO. THE AUTHORITY HAS NO TAXING POWER. No covenant, condition or agreement contained herein shall be deemed to be a covenant, agreement or obligation of any present or future director, officer, employee or agent of the Authority in its individual capacity, and neither the Chairman of the Authority nor any officer B-3 thereof executing this bond shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof The Bonds may not be called for redemption by the Authority except as provided herein and in the Agreement of Trust. The Bonds maturing on or after July 15, 2026, may be redeemed prior to their respective maturities on or after July 15, 2025, at the option of the Authority, at the direction of the City, in whole or in part at any time at a redemption price of 100% of the principal amount, or portion thereof, of Bonds to be redeemed plus interest accrued to the redemption date. If less than all the Bonds are called for redemption, they shall be redeemed from maturities in such order as determined by the Authority, at the direction of the City. If less than all of the Bonds of any maturity are called for redemption, the Bonds to be redeemed shall be selected by DTC or any successor securities depository pursuant to its rules and procedures or, if the book-entry system is discontinued, shall be selected by the Trustee by lot in such manner as the Trustee in its discretion may determine. The portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some integral multiple thereof In selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by$5,000. If any of the Bonds or portions thereof are called for redemption, the Trustee shall send notice of the call for redemption, identifying the Bonds or portions thereof to be redeemed, not less than 30 nor more than 60 days prior to the redemption date, by facsimile or electronic transmission, registered or certified mail or overnight express delivery, to the registered owner of the Bonds. Such notice may state that (1) it is conditioned upon the deposit of moneys, in an amount equal to the amount necessary to effect the redemption, with the Trustee no later than the redemption date or (2) the Authority retains the right to rescind such notice on or prior to the scheduled redemption date, and such notice and option redemption shall be of no effect if such moneys are not so deposited or if the notice is rescinded. Provided funds for their redemption are on deposit at the place of payment on the redemption date, all Bonds or portions thereof so called for redemption shall cease to bear interest on such date, shall no longer be secured by the Agreement of Trust and shall not be deemed to be Outstanding under the provisions of the Agreement of Trust. If a portion of this bond shall be called for redemption, a new bond in principal amount equal to the unredeemed portion hereof will be issued to DTC or its nominee upon surrender hereof, or if the book-entry system is discontinued, to the registered owners of this bond. The registered owner of this bond shall have no right to enforce the provisions of the Agreement of Trust or to institute action to enforce the covenants therein or to take any action with respect to any Event of Default under the Agreement of Trust or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Agreement of Trust. Modifications or alterations of the Agreement of Trust or the Support Agreement, or of any supplement thereto, may be made only to the extent and in the circumstances permitted by the Agreement of Trust. B-4 ' III The Bonds are issuable as registered bonds in the denomination of $5,000 and integral multiples thereof. Upon surrender for transfer or exchange of this bond at the corporate trust office of the Trustee in Richmond, Virginia, together with an assignment duly executed by the registered owner or its duly authorized attorney or legal representative in such form as shall be satisfactory to the Trustee, the Authority shall execute, and the Trustee shall authenticate and deliver in exchange, a new bond or bonds in the manner and subject to the limitations and conditions provided in the Agreement of Trust, having an equal aggregate principal amount, in authorized denominations, of the same series form and maturity, bearing interest at the same rate and registered in the name or names as requested by the then registered owner hereof or its duly authorized attorney or legal representative. Any such exchange shall be at the expense of the Authority, except that the Trustee may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto. The Trustee shall treat the registered owner as the person exclusively entitled to payment of principal and interest and the exercise of all other rights and powers of the owner, except that interest payments shall be made to the person shown as holder on the fifteenth day of the month preceding each interest payment date. All acts conditions and things required to happen, exist or be performed precedent to and in the issuance of this bond have happened, exist and have been performed. This bond shall not become obligatory for any purpose or be entitled to any security or benefit under the Agreement of Trust or be valid until the Trustee shall have executed the Certificate of Authentication appearing hereon and inserted the date of authentication hereon. IN WITNESS WHEREOF, the City of Virginia Beach Development Authority has caused this bond to be signed by its Chairman, its seal to be imprinted hereon and attested by its Secretary, and this bond to be dated the date first above written. CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY (SEAL) By Chairman Attest: Secretary B-5 CERTIFICATE OF AUTHENTICATION Date Authenticated: June , 2015 This bond is one of the Series 2015 Bonds described in the within mentioned Agreement of Trust. U.S. BANK NATIONAL ASSOCIATION, as Trustee By Authorized Officer B-6 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto (please print or typewrite name and address, including zip code, of Transferee) PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE • • • • The within Bond and all rights thereunder, hereby irrevocably constituting and appointing , Attorney, to transfer said Bond on the books kept for the registration thereof, with full power of substitution in the premises. Date: Signature Guaranteed NOTICE: Signature(s) must be guaranteed (Signature of Registered Owner) by an Eligible Guarantor Institution such as a Commercial Bank, Trust Company, NOTICE: The signature above must Securities Broker/Dealer, Credit Union, correspond with the name of the or Savings Association who is a member registered owner as it appears on the of a medallion program approved by The front of this bond in every particular, Securities Transfer Association, Inc. without alteration or enlargement or any change whatsoever. B-7 1 11 EXHIBIT C CITY OF VIRGINIA BEACH DEVELOPMENT AUTHORITY SUMMARY OF REFUNDED PRIOR BONDS BASE CUSIP NUMBER: 92774G Maturity CUSIP Interest Par Call Call Bonds Date Number Rate Amount Date Price Public Facility Revenue 07/15/2019 DM4 5.000% $4,195,000 07/15/2017 100% Bonds, Series 2007A 07/15/2020 DN2 5.000 4,405,000 07/15/2017 100% 07/15/2021 DP7 5.000 4,640,000 07/15/2017 100% 07/15/2024 DS1 5.000 5,385,000 07/15/2017 100% 07/15/2025 DT9 5.000 5,665,000 07/15/2017 100% 07/15/2026 DU6 5.000 5,955,000 07/15/2017 100% 07/15/2027 DV4 5.000 5,635,000 07/15/2017 100% $35,880,000 4819-8645-1235.2 C-1 III -28- Item-VI-L2 ORDINANCES/RESOLUTIONS ITEM#64916 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT,Resolution to ENDORSE the Deferred Compensation Investment Policy as approved by the Deferred Compensation Board Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 1 III 1 A RESOLUTION TO ENDORSE THE DEFERRED 2 COMPENSATION INVESTMENT POLICY 3 4 WHEREAS, the City of Virginia Beach established a plan of deferred 5 compensation for its employees on March 23, 1981 (the "Plan"); and 6 7 WHEREAS, the purpose of the Plan is to provide for the deferral of 8 compensation to the participants of the Plan; and 9 10 WHEREAS, such deferred compensation is invested at the direction of the 11 various plan participants; and 12 13 WHEREAS, the Deferred Compensation Board (the "Board") has a formal 14 investment policy that was endorsed by the City Council in December 2005 (the 15 "Policy"); and 16 17 WHEREAS, the Policy establishes performance standards based on financial 18 composites and ratings and includes investment options in major asset classes; and 19 20 WHEREAS, the Policy, as attached hereto, reflects a shift in the deferred 21 compensation industry toward a more streamlined menu of investment options from 22 which plan participants may choose to invest. 23 24 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 25 VIRGINIA BEACH, VIRGINIA: 26 27 That the City Council hereby endorses the Deferred Compensation Investment 28 Policy as attached hereto as Exhibit A. Adopted by the Council of the City of Virginia Beach, Virginia, on the 2nd day of June , 2015. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: f". (--- ri.) - att de a_0Q(ucjjj v I Ai s. Department of Finance I _ Cit n- 0 CA13359 R-1 May 19, 2015 EXHIBIT A CITY OF VIRGINIA BEACH DEFERRED COMPENSATION PLAN Statement of Investment Policy Council Consideration June 2, 2015 III TABLE OF CONTENTS Page INTRODUCTION 2 OBJECTIVES OF THE PLANS 2 INVESTMENT OPTIONS AND CATEGORIES 4 STABLE VALUE AND FUND CRITERIA 6 REPORTING&MONITORING PROCEDURES 15 INVESTMENT FUND EVALUATION 16 FORMAL FUND REVIEW(WATCHLIST) 17 TERMINATION OF FUND 17 INVESTMENT POLICY CHANGES 18 III INTRODUCTION The City of Virginia Beach Deferred Compensation Board (the "Board") hereby amends the Statement of Investment Policy ("Statement") for the City of Virginia Beach Deferred Compensation Plan, City of Virginia Beach Sheriffs Office Supplemental Retirement Plan, and the School Board of the City of Virginia Beach Deferred Compensation Plan,hereinafter referred to as("the Plan"). This Statement sets forth the goals and objectives of the investment options available under the Plan. The purpose of the Statement is to guide the Board in effectively supervising, monitoring, and managing the investment options available under the Plan. The Statement is designed to allow the sufficient flexibility in the management oversight process, while also setting forth reasonable parameters to promote the exercise of reasonable prudence and care with respect to the investment options under the Plan. The Statement provides the framework for the selection of investment options, a procedure for the ongoing evaluation of the investment options available under the Plan,and guidelines for terminating and replacing investment options. The Board shall choose which investment options will be available under the Plan and shall monitor the investment options' compliance with the Statement. The consultant shall work with the Board to manage the investment process. This includes regular meetings with the Board to provide an independent perspective on the Plan's goals. The Board and Consultant will review the investment offerings and performance and make recommendations to the Board as appropriate. OBJECTIVES OF THE PLANS The Plan is a long-term retirement savings vehicles and is intended as a source of retirement income for eligible participants. The investment options available cover a broad range of investment risk and rewards appropriate for these kinds of retirement savings programs. Neither the Board nor the Consultant has fiduciary responsibility shall be responsible for any fmancial loss that may be incurred by any participant because of the participant's investment direction or because of any action taken in accordance with the participant's investment direction. The Board and the Recordkeeper do not provide investment advice to any participant or assist any participant in deciding how to allocate contributions to the participants' plan accounts. This Statement of Investment Policy serves the following purposes: • To ensure that a broad range of investment options are offered to Plan participants; • To establish an investment program that will allow Plan participants the opportunity to structure an investment strategy that meets their individual return objectives and risk tolerances; • To defme the investment categories offered by the Plans; • To establish investment objectives and guidelines for each investment category offered within the Plans; • To establish benchmarks and performance standards for each investment and to evaluate each option's performance against appropriate benchmarks and standards; • To establish a procedure for reporting and monitoring of the various funds; • To defme the procedures for investment fund selection,evaluation and formal fund review; and • To set guidelines and procedures for the freezing or withdrawal of an investment option,which in the Board' opinion does not or will not, fulfill the Plans' objectives for which it was selected and, if necessary,replace the option with an appropriate substitute. • To follow industry best practices in the offering of investment options,which may include removing investment options. INVESTMENT OPTIONS AND CATEGORIES The Plans' authorized investments currently consist of eighteen options defined by either investment objective or risk category as outlined in the table below. Investment Options Benchmark Peer Group Stable Value 3-Year Treasury(Constant N/A Basis) &Hueler secondary Fixed Income Barclays Capital Aggregate Fixed Income Universe Bond Index Large Cap Value Russell 1000 Value Index Large Cap Value Universe Large Cap Core (active) S&P 500 Index Large Cap Core Universe Large Cap Core(passive) S&P 500 Index Large Cap Core Universe Large Cap Growth Russell 1000 Growth Index Large Cap Growth Universe Mid Cap Value Russell Mid Cap Value Index Mid Cap Value Universe Mid Cap Core Russell Mid Cap Index Mid Cap Core Universe Mid Cap Growth Russell Mid Cap Growth Index Mid Cap Growth Universe Small Cap Value Russell 2000 Value Index Small Cap Value Universe Small Cap Core Russell 2000 Index Small Cap Core Index Small Cap Growth Russell 2000 Growth Index Small Cap Growth Universe Foreign Equity MSCI EAFE Index Foreign Equity Fund Global Equity MSCI AWCI Index Global Equity Universe Lifestyle Composite Index N/A III Each investment option offered under the Plans shall: • Operate in full accordance with its current published prospectus or"fact sheet"; • Have its performance results measured against the applicable performance standards described herein. If the Board determines an investment option no longer meets the performance criteria, it may replace that option with a suitable alternative pursuant to the investment fund evaluation procedure outlined herein. Alternatively, if the Board determines there is no suitable alternative or the replacement of such option is not necessary,the Board may decline to provide a replacement option. From time-to-time, the Board, in its discretion, may add investment options/categories to the current core options. At such time, the Statement of Investment Policy will be modified to include these additions. The Board shall select investment options based upon administrative, pricing, historical performance, management style,and other mutually agreeable criteria in cooperation with the Recordkeeper. Investment Categories: Objectives,Guidelines&Performance Standards The Plan shall may offer at least one investment option within each of the following investment categories: Stable Value Objective The objective of this fund option is to provide principal preservation, benefit responsiveness, liquidity, and current income at levels that typically are higher than those provided by money market funds over an interest rate cycle. The book value accounting feature of most Stable Value Fund investments is expected to produce relatively stable annual return on fund assets with little to no fluctuation in account values. Performance Standards • To provide a competitive rate of interest relative to the Hueler Stable Value Index. • This fund declares an annualized rate of interest at least quarterly and prior to the quarter. • Review the book to market ratio of the portfolio on a quarterly basis. Investment Objective: Within the parameters as stated below,the objectives of the fund are to: 1. Preserve principal 2. Provide sufficient liquidity to pay plan benefits 3. Provide stable and predictable returns 4. Earn a high level of return relative to other objectives of the fund Benchmark Index: The interest rates provided to participants after investment management fees will be compared to the yield of three-year treasury notes, on a constant maturity basis. Types of Investments: Subject to the Quality and Diversification Guidelines, Great-West may invest the assets of the Stable Asset Fund in any or all of the following: A. United States Treasury Securities including Treasury Bills,Notes,Bonds, and Strips. B. United States Agency or Government Sponsored Enterprises (GSE's) Securities, including 1) debt guaranteed under the FDIC's Debt Guarantee program or a similar debt guarantee program backed by the United States Government and any other agency or GSE debt unless otherwise restricted; 2) U.S. Agency or GSE Asset-Backed Securities and Commercial Mortgage-Backed Securities; and 3) other U.S. Agency Securities. C. Mortgage-Backed securities issued by GNMA, FNMA, FHLMC, FHLB, VA Vendee, or other United States Agency or GSE's. D. Collateralized Mortgage Obligations (CMO's) secured by GNMA, FNMA, FHLMC, FHLB, VA Vendee, or other United States Agency or GSE's. E. Instruments of Commercial Banks, U.S. money market mutual funds, or repurchase 111 agreements fully collateralized by United States Government,Agency, or GSE securities. F. Commercial Paper rated Al, P1, or Fl as rated by S&P, Moody's or Fitch. G. Corporate and Non-Corporate Credit Bonds rated "A-/A3" or better as rated by S&P, Moody's or Fitch at time of purchase. All securities must be U.S. dollar denominated. Non-Corporate Credit Bonds include 1) Foreign Sovereigns, 2) Supranationals, 3) U.S. and Foreign Local Governments, and 4)Foreign Agencies. H. Non-Agency Securities: Asset-Backed Securities, Mortgage-Backed Securities, and Commercial Mortgage-Backed Securities rated "AAA/Aaa" as rated by S&P, Moody's or Fitch at time of purchase. Great West Life & Annuity Insurance Company provides a book value guarantee to insure principal and interest preservation. Short-term Investments: All money received by Great-West for deposit to the Stable Asset Fund will be invested the same day it is received. Whenever possible these monies will be invested in the type of investments indicated above. However, if the monies are received at a time of the day which makes this impractical, then the monies will be invested in an interest bearing account at a commercial bank. The money will be invested according to the above guidelines on a timely basis, and in the best interest of the participants. Quality&Diversification Guidelines: A. A maximum of 10% of the account assets may be invested in Corporate Bonds and Non- Corporate Credit Bonds as described in"G"of Types of Investments. B. A maximum of 10% of the account assets may be invested in Non-Agency Securities (Asset-Backed Securities, Mortgage-Backed Securities, and Commercial Mortgage- Backed Securities)as described in "H"of Types of Investments. C. Weighted average quality of AA-/Aa3 or better. D. For "G" and "H" Types of Investments, no more than 2% of the portfolio may be invested in any one issuer. For purposes of diversification, each Non-Agency Asset- Backed, Mortgage-Backed or Commercial-Mortgage-Backed trust will be treated as a separate issuer. Duration of Investments: The portfolio's average duration will not exceed four years. Reporting: A. On a quarterly basis, the manager will provide a statement to the Board showing the market value of each security, the sector diversification within the portfolio, and the duration, quality and yield of the portfolio. B. On a quarterly basis, the manager will provide to the Board a book value statement showing the book value of the total portfolio and showing the methodology and assumptions used to reset the crediting rate of the Stable Asset Fund. C. On an annual basis, a senior representative of Great-West will be made available to the Plan to present to the Plan a verbal and written review of the investment decisions, and the rationale associated with these decisions for the previous 12-month's activity. Trading Authority: Within the Investment Guidelines as stated in this Exhibit, Great-West has the authority to buy and sell any securities in this separate account that it judges to be in the best long-term interest of the separate account and the participants that utilize the account; provided, however, that it is understood that Investment Manager may raise cash by selling assets to provide liquidity to pay benefits and withdrawals. Changes to the Investment Guidelines: The Group Contract holder may modify the guidelines (including duration) for investment of assets of the fund at any time providing that these modifications will not affect the funds ability to provide benefits at book value. Proposed modifications will be subject to review by the Investment Manager before being implemented. No Competing Funds: In order to protect the integrity of the fund, no competing funds to the Stable Asset Fund are allowed. Competing funds include other Stable Value Funds, funds with a known or periodically declared stated rate of interest, money market funds, Bond funds with less than 3 year duration, and any other fund offered by the plan that Great-West in good faith deems to be a competing fund. In the unlikely event that an existing Plan investment becomes a competing fund, an equity wash for a period of up to 180 days may apply to all participant transfers until the competing fund is removed, unless otherwise agreed to between Great-West Life & Annuity Insurance Company and the Plan. Amortization of Trading Gains/Losses: The general policy of the fund will be a 'buy and hold" strategy. However, to the extent that realized gains or losses occur, these gains/losses will be amortized over the expected average duration of the portfolio. Fixed Income Objective The objective of this investment is to invest in income-producing securities, including corporate and US Government bonds,preferred stocks, income-producing common stocks, convertibles, and foreign securities. Investment returns are expected to be derived primarily from current income. Performance Standards(Net offees) • To exceed the return of the Barclays Capital Aggregate Index over a full market cycle,or generally a period of 3 to 5 years. • To exceed the median return of the fixed income fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the Barclays Capital Aggregate Index and fixed income universe. Large Cap Value Equity Objective The objective of this investment category is to invest primarily in the common stock of large capitalization domestic companies considered by the fund manager to be undervalued relative to the market. Investment returns are expected to be derived primarily from capital appreciation and, to a lesser degree, dividend income. The market capitalization range for this investment category will be in line with the capitalization classification determined by mutual fund databases, such as Morningstar and Lipper. Performance Standards(Net offees) • To exceed the return of the Russell 1000 Value Index over a full market cycle, or generally a period of 3 to 5 years. • To exceed the median return of the large cap value equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the Russell 1000 Value Index and the large cap value equity fund universe. Large Cap Core Equity(active) Objective The objective of this investment category is to invest primarily in common stock of large capitalization domestic companies considered by the fund manager to be undervalued relative to the market or having above average potential for capital appreciation. Investment returns are expected to be derived primarily from capital appreciation and,to a lesser degree,dividend income. Performance Standards(Net of Fees) • To exceed the return of the S&P 500 Index over a full market cycle, or generally a period of 3 to 5 years. • To exceed the median return of the large cap core equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the S&P 500 Index and the large cap core equity fund universe. Large Cap Core Equity(passive) Objective The objective of this investment category is to track the performance of the Standard & Poor's 500 Index by investing in common stock of the large capitalization domestic companies comprising the Index. The S&P 500 Index is an equity composite of the 500 largest companies in the United States based on market capitalization. The fund manager targets to match the index rather than attempt to outperform the index. Investment returns are expected to be derived primarily from capital appreciation and, to a lesser degree, dividend income. Performance Standards(Net of Fees) • To approximate the performance of the S&P 500 Index over a full market cycle, or generally a period of 3 to 5 years. ■ To exceed the median return of the large cap core equity fund universe over a full market cycle. Large Cap Growth Equity Objective The objective of this investment category is to invest primarily in the common stock of large capitalization domestic companies considered by the fund manager to have above average potential for capital appreciation. Investment returns are expected to be derived primarily from capital appreciation. The market capitalization range for this investment category will be in line with the capitalization classification determined by mutual fund databases, such as Morningstar and Lipper. Performance Standards(Net of Fees) • To exceed the return of the Russell 1000 Growth Index over a full market cycle,or generally a period of 3 to 5 years. • To exceed the median return of the large cap growth equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the Russell 1000 Growth Index and the large cap growth equity fund universe. Mid Cap Value Equity Objective The objective of this Category is to invest primarily in the common stocks of medium-sized companies considered by the Investment Option manager to be undervalued relative to the market. Investment returns are expected to be derived primarily from capital appreciation and, to a lesser degree, dividend income. The market capitalization range for this investment category will be in line with the capitalization classification determined by mutual fund databases, such as Morningstar and Lipper. 11 Performance Standards(Net of Fees) • To exceed the return of the Russell Midcap Value Index over a full market cycle, or generally a period of 3 to 5 years. • To exceed the median return of the mid cap value equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the Russell Mid Cap Value Index and the mid cap value equity fund universe. Mid Cap Core Equity(passive) Objective The objective of this investment category is to invest in the common stock of medium capitalization domestic companies considered by the fund manager to be undervalued relative to the market or having above average potential for capital appreciation. Investment returns are expected to be derived primarily from capital appreciation and, to a lesser degree, dividend income. The market capitalization range for this investment category will be in line with the capitalization classification determined by mutual fund databases, such as Morningstar and Lipper. Performance Standards(Net of Fees) • To approximate the performance of the Russell Midcap Index over a full market cycle,or generally a period of 3 to 5 years. • To perform in the median return of the mid cap core equity fund universe over a full market cycle. Mid Cap Growth Equity Objective The objective of this Category is to invest in the common stocks of medium-sized capitalization domestic companies considered by the Investment Option manager to have above average earnings potential for capital appreciation. Investment returns are expected to be derived primarily from capital appreciation. The market capitalization range for this investment category will be in line with the capitalization classification determined by mutual fund databases, such as Morningstar and Lipper. Performance Standards(Net of Fees) • To exceed the return of the Russell Midcap Growth Index over a full market cycle, or generally a period of 3 to 5 years. 11 • To exceed the median return of the mid cap growth equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the Russell Mid Cap Growth Index and the mid cap growth equity fund universe. Small Cap Value Equity Objective The objective of this investment category is to invest primarily in the common stocks of small capitalization domestic companies considered by the fund manager to be undervalued relative to the market or with above average potential for capital appreciation. Investment returns are expected to be derived primarily from capital appreciation and,to a lesser extent,dividend income. Performance Standards(Net of Fees) • To exceed the return of the Russell 2000 Value Index over a full market cycle, or generally a period of 3 to 5 years. • To exceed the median return of the small cap value equity fund universe over a full market cycle. • Risk,as measured by the standard deviation of quarterly returns, shall be consistent with that of the Russell 2000 Value Index and the small cap value equity fund universe. Small Cap Blend Equity Objective The objective of this investment category is to invest primarily in the common stocks of small capitalization domestic companies considered by the fund manager to be undervalued relative to the market (value) or to have above average potential for capital appreciation (growth). Investment returns are expected to be derived primarily from capital appreciation and, to a lesser extent, dividend income. The market capitalization range for this investment category will be in line with the capitalization classification determined by mutual fund databases, such as Morningstar and Lipper. Performance Standards (Net of Fees) • To exceed the return of the Russell 2000 Index over a full market cycle,or generally a period of 3 to 5 years. • To exceed the median return of the small cap core equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the Russell 2000 Index and the small cap core equity fund universe. Small Cap Growth Equity Objective The objective of this Category is to invest primarily in the common stocks of small capitalization domestic companies considered by the Investment Option manager to have above average potential for capital appreciation. Investment returns are expected to be derived primarily from capital appreciation. The market capitalization range for this investment category will be in line with the capitalization classification determined by mutual fund databases, such as Morningstar and Lipper. Performance Standards(Net of Fees) • To exceed the return of the Russell 2000 Growth Index over a full market cycle,or generally a period of 3 to 5 years. • To exceed the median return of the small cap growth equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the Russell 2000 Growth Index and the small cap growth equity fund universe. Foreign Equity Objective The objective of this investment category is to invest primarily in the common stock of companies located outside the United States. Investment returns are expected to be derived primarily from capital appreciation. Performance Standards(Net of Fees) • To exceed the return of the MSCI EAFE Index(net dividends)over a full market cycle, or generally a period of 3 to 5 years. • To exceed the median return of the foreign equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the MSCI EAFE Index(net)and the foreign equity fund universe. Global Equity Objective The objective of this investment category is to invest primarily in the common stock of companies located around the world.Investment returns are expected to be derived primarily from capital appreciation. Performance Standards(Net of Fees) • To exceed the return of the MSCI ACWI Index(net dividends)over a full market cycle,or generally a period of 3 to 5 years. • To exceed the median return of the global equity fund universe over a full market cycle. • Risk, as measured by the standard deviation of quarterly returns, shall be consistent with that of the MSCI ACWI Index(net)and the global equity fund universe. Lifestyle Objective The objective of this investment category is to invest in an allocation of fixed income and equity securities according to certain risk characteristics. Conservative funds are weighted in favor of fixed income securities to provide a less risky investment option to participants in or nearing retirement, or with a low tolerance for volatile investment performance. Balanced funds seek a balance between fixed income and equity securities to provide potential for higher returns, while seeking to limit the volatility of overall fund performance. Growth funds are weighted in favor of equities to provide potential for high returns, but through increased risk, to participants with long investment horizons or with a high tolerance for risk. Investment returns may be derived from a combination of current income and capital appreciation. Performance Standards(Net of fees) • To exceed the return of a composite index over a market cycle,or generally a period of 3 to 5 years. • The composite index for each fund will be established by the fund manager to reflect the asset allocation of the portfolio. REPORTING AND MONITORING PROCEDURES The Board will review the Plan at least annually,including review of the following: • Current trends and developments in the capital markets and investment management community (market review); • The current level of diversification provided by the investment categories and options offered by the Plan under the current service providers core investment fund line-up (review of the correlation between investment categories and options); • Changes in the investment management staff related to each investment option (organizational review); • The continued consistency between the stated investment guidelines of each investment option and Plan policies(review of the guidelines of each investment option); • The compliance of each investment option with stated investment guidelines (review of the holdings and characteristics of each investment option),including style drift analysis; • The compliance of each investment option's risk and return characteristics with the expectations stated herein(performance review); • Retain at their discretion,investment management,trustee and other professional services to facilitate and assist with the management of the Plan's investment options; and • Segal Scoring System, which is a proprietary mutual fund scoring system developed by the Segal Advisors' Research Team. The system utilizes quantitative and qualitative criteria to score the mutual funds.Detailed below are the scores and the actions that may be taken by the Board: fi For Active Funds; ^`r' �s4tg': � _' :� oda ss„ - $11P-' bove Average o Action B bove Average o Action verage Closely Monitor D atch list I and Alert mmediate Action erminate than 3 years of history Check share class and inception date For Index Funds: A 0 Satisfactory o Action B Satisfactory I o Action EllSatisfactory o Action D I mmediate Action erminate © mediate Action erminate MIthan 3 years of history Check share class and inception date ■ The Morningstar Rating, which is a quantitative proprietary scoring system developed by Morningstar. The system is a quantitative measure of risk-adjusted returns. This rating details how well the fund has balanced risk and return relative to other funds in a similar Morningstar category. The Morningstar Rating is calculated over a 3 and 5-year period with a scale from 1 to 5.A 3,4 or 5 rating is considered above benchmark,while a 1 or 2 rating is considered"Below Benchmark." INVESTMENT FUND EVALUATION The Board,in its discretion,may conduct informal review and evaluation of an investment fund at any time. The Board may place a fund under formal fund review, terminate a fund, or "freeze" a fund to new contributions for any of the following reasons: 1. The fund has not met the performance standards under the Plan for the fund's investment category; 2. The fund has changed investment manager,or such change appears imminent; 3. The fund has had a significant change in ownership or control; 4. The fund has changed investment focus or has experienced style drift, departing from the investment objectives or parameters in its prospectus or"fact sheet";or 5. The fund has violated a SEC rule or regulation. FORMAL FUND REVIEW(WATCHLIST) If the a fund has not met the criteria outlined in the document above, the Board may place the fund on Formal Review (Watchlist). When a fund has been placed under formal review (Watchlist), the Board shall conduct a detailed evaluation of the fund, its operations, and its performance. During the review,the Board 1) may suspend contributions to the fund from existing participants and 2) may close the fund to new enrollees. Upon completion of the evaluation,the Board may continue the fund under formal review status,remove the fund from formal review, or terminate the fund. • If a positive conclusion is reached concerning the Manager's continued ability to meet the performance criteria and investment constraints in the future, then no action will be taken. However, the Board will revisit the performance issues within three months. • If a positive conclusion is not reached concerning the Manager's continued ability to meet performance criteria and investment constraints in the future, then the fund will be frozen and will trigger the following: TERMINATION OF FUNDS When the Board terminates a fund: 1. The Board will seek a new fund appropriate for the given asset class; 2. The Board must promptly notify the Recordkeeper that the fund is being terminated; 3. Upon identifying a fund, the Board must promptly notify Plan participants who are currently investing in the fund that the Board is terminating the fund as an investment option under the Plan effective on a designated future date(effective date)and that: a. As of the effective date, new investment monies must be redirected to another fund option under the Plan prior to the termination date of the fund; b. Participants having assets in the frozen fund may leave them in the fund for a period of up to six months after the effective date (also known as a "sunset" date), at which time assets in the frozen fund will be mapped to the new replacement fund, or a designated default fund option. INVESTMENT POLICY CHANGES The Board retains the right to modify the above investment policy as they deem necessary to meet its fiduciary responsibility for the Plan and to the participants. This Statement of Investment Policy is adopted by the City of Virginia Beach Deferred Compensation Plan Board on Signature/Title Date -29- Item -VI-1.3a/b/c/d/e/f/g/h/i/j/k/l/m/n ORDINANCES/RESOLUTIONS ITEM#64917 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT,Resolution to GRANT permits re Emergency Medical Services: a. American Lifeline Medical Transport,Inc. b. American Medical Response Mid-Atlantic, Inc. c. Cardinal Ambulance Services, Inc. d. Children's Hospital of the King's Daughters e. Eagle Medical Transports, LLC f Emergency Medical Response LLC g. Medical Transport, LLC h. Mid-Atlantic Regional Ambulance, Inc. i. Nightingale Air Ambulance j. Reliance Medical Transport k. Robbie's Ambulance Service, Inc. 1. Special Event Providers of Emergency Medicine m. Swift Medical Transport n. Tidewater Medical Transport, LLC Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 1 A RESOLUTION TO GRANT PERMITS ALLOWING CERTAIN 2 EMERGENCY MEDICAL SERVICES AGENCIES TO 3 OPERATE IN THE CITY OF VIRGINIA BEACH 4 5 WHEREAS, pursuant to City Code Section 10.5-2, any organization that operates 6 an emergency medical services agency or any emergency medical services vehicle within 7 the City must first obtain a permit from City Council, and such permits must be renewed on 8 an annual basis; and 9 10 WHEREAS, applications for permit renewals have been received by the following 11 agencies: American Lifeline Medical Transport, Inc.; American Medical Response Mid- 12 Atlantic, Inc.; Cardinal Ambulance Service, Inc.; Children's Hospital of the King's 13 Daughters; Eagle Medical Transports, LLC; Emergency Medical Response, LLC; Medical 14 Transport, LLC; Mid-Atlantic Regional Ambulance, Inc.; Nightingale Air Ambulance; 15 Reliance Medical Transport; Special Event Providers of Emergency Medicine, Service, , 16 and; and 17 18 WHEREAS, the above-listed private ambulance agencies perform services not 19 provided by the City's volunteer rescue squads, such as non-emergency inter-facility 20 transports, which include both basic and advance life support calls. 21 22 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF 23 VIRGINIA BEACH; 24 25 1. That the City Council hereby grants Emergency Medical Services permits to the 26 following agencies: 27 28 American Lifeline Medical Transport, Inc.;American Medical Response Mid-Atlantic, 29 Inc.; Cardinal Ambulance Service, Inc.; Children's Hospital of the King's Daughters; 30 Eagle Medical Transports, LLC; Emergency Medical Response, LLC; Medical 31 Transport, LLC; Mid-Atlantic Regional Ambulance, Inc.; Nightingale Air Ambulance; 32 Reliance Medical Transport; Robbie's Ambulance Service, Inc.; Special Event 33 Providers of Emergency Medicine; Swift Medical Transport; and Tidewater Medical 34 Transport, LLC. 35 36 2. That these permits shall be effective from July 1, 2015 until June 30, 2016. Adopted by the City Council of the City of Virginia Beach, Virginia, on this 2nd day of June , 2015. 11 APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Services Cit Attorne s Oce u U E rgency Medica y y CA13364 R-1 May 22, 2015 -30- Item -VI-L4 ORDINANCES/RESOLUTIONS ITEM#64918 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED, BY CONSENT, Ordinance to EXECUTE a Design Agreement re Lynnhaven River Basin Ecosystem Restoration Voting: 11-0 Council Members Voting Aye: M Benjamin Davenport, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 1 AN ORDINANCE TO AUTHORIZE THE CITY 2 MANAGER TO EXECUTE A DESIGN 3 AGREEMENT FOR THE LYNNHAVEN RIVER 4 BASIN ECOSYSTEM RESTORATION PROJECT 5 WITH THE ARMY CORPS OF ENGINEERS 6 7 WHEREAS, the Water Resources Development Act of 1986 provides federal 8 funding and oversight of restoration projects by the U.S. Army Corps of Engineers 9 (USACE); 10 11 WHEREAS, the USACE received funding to initiate design of a restoration 12 project for the Lynnhaven River Basin to include 38 acres of wetlands, 94 acres of 13 submerged aquatic vegetation, and the construction of 31 acres of artificial reef habitat; 14 and 15 16 WHEREAS, the City's portion of the cost share for the design is $300,000 or 25% 17 of the proposed cost of design; and 18 19 WHEREAS, the City Council finds it serves the public interest to partner with the 20 USACE in funding the initial design of a restoration project for the Lynnhaven River 21 Basin and that such project will accrue to the benefit of the City; 22 23 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 24 VIRGINIA BEACH, VIRGINIA, THAT: 25 26 The City Manager, or his designee, is hereby authorized and directed to execute 27 a Design Agreement with the Department of the Army for the Lynnhaven River Basin 28 Ecosystem Restoration Project, attached hereto as Exhibit A, and the City Manager and 29 City Attorney, or designee, are hereby authorized to execute the required certificates 30 regarding authority and lobbying. 31 32 BE IT FURTHER ORDAINED, THAT: 33 34 In accordance with the requirements of § 62.1-148 of the Code of Virginia, the 35 City Clerk shall cause a copy of this ordinance and the resulting agreement to be sent to 36 the Commissioner of Water Resources for the information of the Governor. Adopted by the Council of the City of Virginia Beach, Virginia on the 2nd day of June , 2015. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Public Works Cit A •r- -y CA13358 R-2 May 21, 2015 EXHIBIT A DESIGN AGREEMENT BETWEEN THE DEPARTMENT OF THE ARMY AND CITY OF VIRGINIA BEACH,VA FOR DESIGN FOR THE LYNNHAVEN RIVER BASIN ECOSYSTEM RESTORATION PROJECT, VIRGINIA THIS AGREEMENT is entered into this day of , ,by and between the Department of the Army (hereinafter the "Government"), represented by the U.S. Army Engineer,Norfolk District and City of Virginia Beach, VA (hereinafter the "Non-Federal Sponsor"), represented by City Manager. WITNESSETH,THAT: WHEREAS,Federal General Investigations funds for Fiscal Year 2013, included funds for the Government to initiate design of the Lynnhaven River Basin Ecosystem Restoration Project,Virginia(hereinafter the "Project" as defined in Article I.A. of this Agreement) at City of Virginia Beach, VA; WHEREAS, construction or implementation of the Project is authorized by Public Law 113-121, Water Resources Reform Development Act June 10, 2014, Sec 7002.(5)10.; WHEREAS, Section 105(c) of the Water Resources Development Act of 1986, Public Law 99-662 (33 U.S.C. 2215), provides that the costs of design of a water resources project shall be shared in the same percentage as the purposes of such project; WHEREAS, the Government and the Non-Federal Sponsor agree that, during the period of design, the Non-Federal Sponsor shall contribute 35 percent of total design costs and that, if a Project Partnership Agreement for construction of the Project is executed between the Government and a non-Federal interest, such non-Federal interest shall contribute any remaining portion of the non-Federal share of the costs of design in accordance with the provisions of such Project Partnership Agreement; WHEREAS,the Government and Non-Federal Sponsor have the full authority and capability to perform as hereinafter set forth and intend to cooperate in cost-sharing and financing of the Project in accordance with the terms of this Agreement; and WHEREAS, the Government and the Non-Federal Sponsor, in connection with this Agreement, desire to foster a partnering strategy and a working relationship between the Government and the Non-Federal Sponsor through a mutually developed formal ISI strategy of commitment and communication embodied herein, which creates an environment where trust and teamwork prevent disputes, foster a cooperative bond between the Government and the Non-Federal Sponsor, and facilitate the successful design and implementation of the Project. NOW, THEREFORE,the Government and the Non-Federal Sponsor agree as follows: ARTICLE I - DEFINITIONS A. The term"Project" shall mean to restore 38 acres of wetlands, 94 acres of SAV, and construction of 31 acres of artificial reef habitat as generally described in the Chief of Engineers Report, Subject: Lynnhaven River Basin Ecosystem Restoration Project, Virginia, dated March 27, 2014. B. The term"total design costs" shall mean the sum of all costs incurred by the Non-Federal Sponsor and the Government in accordance with the terms of this Agreement directly related to design of the Project. Subject to the provisions of this Agreement,the term shall include,but is not necessarily limited to:the Government's costs of engineering and design, economic and environmental analyses,and evaluation performed after a feasibility report whether performed prior to or after the effective date of this Agreement that were not previously shared with a non-Federal interest pursuant to any other agreement; the Government's costs of review processes required by the Government; the Government's costs of Independent External Peer Review, if required, except for the costs of any contract for an Independent External Peer Review panel; the Government's supervision and administration costs;the Non-Federal Sponsor's and the Government's costs of participation in the Design Coordination Team in accordance with Article III of this Agreement;the Government's costs of contract dispute settlements or awards; and the Non- Federal Sponsor's and the Government's costs of audit in accordance with Article VII.B. and Article VII.C. of this Agreement. The term does not include any costs of betterments under Article II.E. of this Agreement; any costs of dispute resolution under Article V of this Agreement; any costs incurred as part of reconnaissance studies for the Project; any costs incurred as part of feasibility studies under any other agreement for the Project; the Non- Federal Sponsor's costs of negotiating this Agreement; any costs of a contract for an Independent External Peer Review panel; or any costs of negotiating a project partnership agreement for the Project or separable element thereof. C. The term"period of design" shall mean the time from the effective date of this Agreement to the date that a Project Partnership Agreement for construction of the Project, or a separable element thereof, is executed between the Government and a non- Federal interest or the date that this Agreement is terminated in accordance with Article X of this Agreement, whichever is earlier. D. The term "financial obligations for design" shall mean the financial obligations of the Government that result or would result in costs that are or would be included in total design costs. 2 E. The term"non-Federal proportionate share" shall mean the ratio of the Non- Federal Sponsor's total contribution of funds required by Article II.B.1. of this Agreement to financial obligations for design, as projected by the Government. F. The term"betterment" shall mean a difference in the design of an element of the Project that results from the application of standards that the Government determines exceed those that the Government would otherwise apply to the design of that element. The term does not include any design for features not included in the Project as defined in paragraph A. of this Article. G. The term "Federal program funds" shall mean funds provided by a Federal agency, other than the Depai tnient of the Army,plus any non-Federal contribution required as a matching share therefor. H. The term"fiscal year" shall mean one year beginning on October 1 and ending on September 30. ARTICLE II - OBLIGATIONS OF THE GOVERNMENT AND THE NON-FEDERAL SPONSOR A. The Government, subject to receiving funds appropriated by the Congress of the United States (hereinafter the"Congress")and using those funds and funds provided by the Non-Federal Sponsor, expeditiously shall design the Project, applying those procedures usually applied to Federal projects,in accordance with Federal laws,regulations, and policies. 1. To the extent possible, the Government shall design the Project in accordance with the Project Management Plan for the Project developed and updated as required by the Government after consultation with the Non-Federal Sponsor. 2. The Government shall afford the Non-Federal Sponsor the opportunity to review and comment on the solicitations for all contracts, including relevant scopes of work, prior to the Government's issuance of such solicitations. To the extent possible,the Government shall afford the Non-Federal Sponsor the opportunity to review and comment on all proposed contract modifications, including change orders. In any instance where providing the Non-Federal Sponsor with notification of a contract modification is not possible prior to execution of the contract modification,the Government shall provide such notification in writing at the earliest date possible. To the extent possible,the Government also shall afford the Non-Federal Sponsor the opportunity to review and comment on all contract claims prior to resolution thereof. The Government shall consider in good faith the comments of the Non-Federal Sponsor,but the contents of solicitations, award of contracts or commencement of design using the Government's own forces, execution of contract modifications,resolution of contract claims, and performance of all work on the Project shall be exclusively within the control of the Government. 3 3. At the time the U.S. Army Engineer,Norfolk District(hereinafter the "District Engineer") furnishes the contractor with the Government's Written Notice of Acceptance of Completed Work for each contract awarded by the Government for the Project,the District Engineer shall furnish a copy thereof to the Non-Federal Sponsor. 4. The Government shall afford the Non-Federal Sponsor the opportunity to review and comment on all design products that are developed by contract or by Government personnel during the period of design. The Government shall consider in good faith the comments of the Non-Federal Sponsor,but the final approval of all design products shall be exclusively within the control of the Government. 5. As of the effective date of this Agreement, $900,000 of Federal funds for design have been provided by Congress for the Parent Project of which $900,000 is currently projected to be available for the Project. The Government makes no commitment to request Congress to provide additional Federal funds for the Parent Project or the Project. Further, the Government's financial participation in the Project is limited to the Federal funds that the Government makes available to the Project. B. The Non-Federal Sponsor shall contribute 35 percent of total design costs in accordance with the provisions of this paragraph. 1. The Non-Federal Sponsor shall provide funds in accordance with Article IV.B. of this Agreement in the amount necessary to meet the Non-Federal Sponsor's share of 35 percent of total design costs if the Government projects at any time that the collective value of the Non-Federal Sponsor's contributions under Article III and Article VII of this Agreement will be less than such share. 2. The Government,subject to the availability of funds, shall refund or reimburse to the Non-Federal Sponsor any contributions in excess of 35 percent of total design costs if the Government determines at any time that the collective value of the following contributions has exceeded 35 percent of total design costs: (a) the value of the Non-Federal Sponsor's contributions under paragraph B.1. of this Article; and(b) the value of the Non-Federal Sponsor's contributions under Article III and Article VII of this Agreement. C. Upon conclusion of the period of design,the Government shall conduct an accounting, in accordance with Article IV.C. of this Agreement, and furnish the results to the Non-Federal Sponsor. D. The Non-Federal Sponsor shall not use Federal program funds to meet any of its obligations for the Project under this Agreement unless the Federal agency providing the funds verifies in writing that such funds are authorized to be used to carry out the Project. E. The Non-Federal Sponsor may request the Government to include betterments in the design of the Project. Such requests shall be in writing and shall describe the betterments requested to be included in the design of the Project. If in its sole discretion 4 the Government elects to include such betterments or any portion thereof in the design of the Project, it shall so notify the Non-Federal Sponsor in a writing that sets forth any applicable terms and conditions, which must be consistent with this Agreement. In the event of conflict between such a writing and this Agreement, this Agreement shall control. The Government shall allocate the costs of the Project features that include betterments between total design costs and the costs of the betterments. The Non-Federal Sponsor shall be solely responsible for all costs of design of the betterments by the Government under this paragraph and shall pay all such costs in accordance with Article IV.D. of this Agreement. F. If the Government and a non-Federal interest enter into a Project Partnership Agreement for construction of the Project, or a separable element thereof, the Government, in accordance with the provisions of this paragraph, shall include the amount of total design costs in total project costs for the Project, or separable element thereof Further, the Government, in accordance with the provisions of this paragraph, shall afford credit toward the non-Federal interest's share of total project costs for the Project, or separable element thereof, for the Non-Federal Sponsor's contributions toward total design costs under this Agreement. 1. If the Government and a non-Federal interest enter into a Project Partnership Agreement for construction of the entire Project, the Government shall include the amount of total design costs in total project costs for the Project. Further, the Government shall afford credit toward the non-Federal interest's share of total project costs for the Non-Federal Sponsor's contributions toward total design costs, including any excess amount determined in accordance with Article IV.C.2. or Article IV.D.3.b. of this Agreement that was not refunded or reimbursed by the Government. 2. If the Government and a non-Federal interest enter into a Project Partnership Agreement for construction of a separable element of the Project, the Government shall determine the portion of total design costs that are allocable to such separable element and include such amount in total project costs for such separable element. Further, the Government shall determine the amount of the Non-Federal Sponsor's contributions toward total design costs, including any excess amount determined in accordance with Article IV.C.2. or Article IV.D.3.b. of this Agreement that was not refunded or reimbursed by the Government, that are allocable or attributable to such separable element and shall afford credit for such amount toward the non-Federal interest's share of total project costs of such separable element. 3. If the Government and a non-Federal interest do not enter into a Project Partnership Agreement for construction of the Project or a separable element thereof, the Government shall not be obligated to refund or reimburse the Non-Federal Sponsor, in whole or in part, for the Non-Federal Sponsor's contribution toward total design costs. Further, refund or reimbursement by the Government for any excess amount determined in accordance with Article IV.C.2. or Article IV.D.3.b. of this Agreement is subject to the availability of funds. 5 III G. This Agreement shall not be construed as obligating either party to seek funds for, or to participate in, construction or implementation of the Project or a separable element thereof or as relieving the Non-Federal Sponsor of any future obligation under the terms of any Project Partnership Agreement. ARTICLE III - DESIGN COORDINATION TEAM A. To provide for consistent and effective communication,the Non-Federal Sponsor and the Government,not later than 30 calendar days after the effective date of this Agreement, shall appoint named senior representatives to a Design Coordination Team. Thereafter,the Design Coordination Team shall meet regularly until the end of the period of design. The Government's Project Manager and a counterpart named by the Non-Federal Sponsor shall co-chair the Design Coordination Team. B. The Government's Project Manager and the Non-Federal Sponsor's counterpart shall keep the Design Coordination Team informed of the progress of design and of significant pending issues and actions, and shall seek the views of the Design Coordination Team on matters that the Design Coordination Team generally oversees. C. Until the end of the period of design,the Design Coordination Team shall generally oversee the Project,including matters related to: design; completion of all necessary environmental coordination and documentation; scheduling of reports and work products;plans and specifications;real property and relocation requirements for construction of the Project;design contract awards and modifications; design contract costs; the Government's cost projections; anticipated requirements and needed capabilities for performance of operation,maintenance,repair,rehabilitation, and replacement of the Project including issuance of permits; and other matters related to the Project. This oversight of the Project shall be consistent with a project management plan developed by the Government after consultation with the Non-Federal Sponsor. D. The Design Coordination Team may make recommendations to the District Engineer on matters related to the Project that the Design Coordination Team generally oversees,including suggestions to avoid potential sources of dispute. The Government in good faith shall consider the recommendations of the Design Coordination Team. The Government,having the legal authority and responsibility for design of the Project,has the discretion to accept or reject, in whole or in part,the Design Coordination Team's recommendations. E. The Non-Federal Sponsor's costs of participation in the Design Coordination Team shall be included in total design costs and shared in accordance with the provisions of this Agreement, subject to an audit in accordance with Article VII.C. of this Agreement to determine reasonableness, allocability, and allowability of such costs. The Government's costs of participation in the Design Coordination Team shall be included in total design costs and shared in accordance with the provisions of this Agreement. 6 11 ARTICLE IV - METHOD OF PAYMENT A. In accordance with the provisions of this paragraph, the Government shall maintain current records and provide to the Non-Federal Sponsor current projections of costs, financial obligations, and the contributions provided by the parties. 1. As of the effective date of this Agreement, total design costs are projected to be $1,200,000; the value of the Non-Federal Sponsor's contributions under Article III and Article VII of this Agreement is projected to be$300,000;the Non-Federal Sponsor's contribution of funds required by Article II.B.1. of this Agreement is projected to be $300,000; the non-Federal proportionate share is projected to be 25 percent; and the Government's total financial obligations to be incurred to include betterments in the design of the Project and the Non-Federal Sponsor's contribution of funds for such costs required by Article II.E. of this Agreement are projected to be$0. These amounts and percentage are estimates subject to adjustment by the Government, after consultation with the Non-Federal Sponsor, and are not to be construed as the total financial responsibilities of the Government and the Non-Federal Sponsor. 2. By October 1, 2015 and by each quarterly anniversary thereof until the conclusion of the period of design and resolution of all relevant claims and appeals, the Government shall provide the Non-Federal Sponsor with a report setting forth all contributions provided to date and the current projections of the following: total design costs; the value of the Non-Federal Sponsor's contributions under Article III and Article VII of this Agreement;the Non-Federal Sponsor's contribution of funds required by Article II.B.1. of this Agreement; the non-Federal proportionate share•, the total contribution of funds required from the Non-Federal Sponsor for the upcoming contract and upcoming fiscal year] and the Government's total financial obligations to be incurred to include betterments in the design of the Project and the Non-Federal Sponsor's contribution of funds for such costs required by Article II.E. of this Agreement. B. The Non-Federal Sponsor shall provide the contribution of funds required by Article II.B.1. of this Agreement in accordance with the provisions of this paragraph. 1. Not less than 7 calendar days after the effective date of this Agreement, the Government shall notify the Non-Federal Sponsor in writing of the funds the Government determines to be required from the Non-Federal Sponsor to meet its projected share under Article II.B.1. of this Agreement. Within 30 calendar days of receipt of such notice, the Non-Federal Sponsor shall provide the Government with the full amount of such required funds by delivering a check payable to "FAO, USAED, Norfolk District E4"to the District Engineer, or verifying to the satisfaction of the Government that the Non-Federal Sponsor has deposited such required funds in an escrow or other account acceptable to the Government, with interest accruing to the Non- Federal Sponsor, or by presenting the Government with an irrevocable letter of credit acceptable to the Government for such required funds, or by providing an Electronic Funds Transfer of such required funds in accordance with procedures established by the Government. 7 2. The Government shall draw from the funds provided by the Non- Federal Sponsor such sums as the Government deems necessary to cover: (a) the non- Federal proportionate share of financial obligations for design incurred prior to the commencement of the period of design; and (b) the non-Federal proportionate share of financial obligations for design as financial obligations for design are incurred. If at any time the Government determines that additional funds will be needed from the Non- Federal Sponsor to cover the Non-Federal Sponsor's share of such financial obligations, the Government shall notify the Non-Federal Sponsor in writing of the additional funds required and provide an explanation of why additional funds are required. Within 45 calendar days from receipt of such notice, the Non-Federal Sponsor shall provide the Government with the full amount of such additional required funds through any of the payment mechanisms specified in paragraph B.1. of this Article. C. Upon conclusion of the period of design and resolution of all relevant claims and appeals,the Government shall conduct a final accounting and furnish the Non- Federal Sponsor with written notice of the results of such final accounting. If outstanding relevant claims and appeals prevent a final accounting from being conducted in a timely manner, the Government shall conduct an interim accounting and furnish the Non- Federal Sponsor with written notice of the results of such interim accounting. Once all outstanding relevant claims and appeals are resolved, the Government shall amend the interim accounting to complete the final accounting and furnish the Non-Federal Sponsor with written notice of the results of such final accounting. The interim or final accounting, as applicable,shall determine total design costs. Inaddition, the interim or final accounting, as applicable, shall determine each party's required share thereof, and each party's total contributions thereto as of the date of such accounting. 1. Should the interim,or final accounting, as applicable, show that the Non-Federal Sponsor's total required share of total design costs exceeds the Non-Federal Sponsor's total contributions provided thereto, the Non-Federal Sponsor, no later than 90 calendar days after receipt of written notice from the Government, shall make a payment to the Government in an amount equal to the difference by delivering a check payable to "FAO, USAED,Norfolk District E4"to the District Engineer or by providing an Electronic Funds Transfer in accordance with procedures established by the Government. 2. Should the interim or final accounting, as applicable, show that the total contributions provided by the Non-Federal Sponsor for total design costs exceed the Non-Federal Sponsor's total required share thereof, the Government, subject to the availability of funds, shall refund or reimburse the excess amount to the Non-Federal Sponsor within 90 calendar days of the date of completion of such accounting. In the event the Non-Federal Sponsor is due a refund or reimbursement and funds are not available to refund or reimburse the excess amount to the Non-Federal Sponsor, the Government shall seek such appropriations as are necessary to make the refund or reimbursement. If such appropriations are not received or, if the Non-Federal Sponsor requests that the Government not refund or reimburse the excess amount to the Non- Federal Sponsor, the Government shall apply the excess amount toward the share of total 8 project costs for the Project that is required of the non-Federal interest executing a Project Partnership Agreement or agreements for the Project or separable element thereof in accordance with Article II.F. of this Agreement. D. The Non-Federal Sponsor shall provide the contribution of funds required by Article II.E. of this Agreement to include betterments in the design of the Project in accordance with the provisions of this paragraph. 1. Not less than 60 calendar days prior to the scheduled date for the first financial obligation to include betterments in the design of the Project, the Government shall notify the Non-Federal Sponsor in writing of such scheduled date and of the full amount of funds the Government determines to be required from the Non-Federal Sponsor to cover the costs of design of such betterments. No later than 30 calendar days prior to the Government incurring any financial obligation for design of such betterments, the Non-Federal Sponsor shall provide the Government with the full amount of the funds required to cover the costs of design of such betterments through any of the payment mechanisms specified in paragraph B.1. of this Article. 2. The Government shall draw from the funds provided by the Non- Federal Sponsor such sums as the Government deems necessary to cover the Government's financial obligations for design of such betterments as they are incurred. If at any time the Government determines that the Non-Federal Sponsor must provide additional funds to pay for design of such betterments, the Government shall notify the Non-Federal Sponsor in writing of the additional funds required and provide an explanation of why additional funds are required. Within 30 calendar days from receipt of such notice, the Non-Federal Sponsor shall provide the Government with the full amount of such additional required funds through any of the payment mechanisms specified in paragraph B.1. of this Article. 3. At the time the Government conducts the interim or final accounting, as applicable,the Government shall conduct an accounting of the Government's financial obligations to include betterments in the design of the Project and furnish the Non- Federal Sponsor with written notice of the results of such accounting. If outstanding relevant claims and appeals prevent a final accounting of design of such betterments from being conducted in a timely manner, the Government shall conduct an interim accounting of design of such betterments and furnish the Non-Federal Sponsor with written notice of the results of such interim accounting. Once all outstanding relevant claims and appeals are resolved, the Government shall amend the interim accounting of design of such betterments to complete the final accounting of design of such betterments and furnish the Non-Federal Sponsor with written notice of the results of such final accounting. Such interim or final accounting, as applicable, shall determine the Government's total financial obligations for design of such betterments and the Non-Federal Sponsor's contribution of funds provided thereto as of the date of such accounting. a. Should the interim or final accounting, as applicable, show that the total obligations for including betterments in the design of the Project exceed the total 9 contribution of funds provided by the Non-Federal Sponsor for design of such betterments, the Non-Federal Sponsor, no later than 90 calendar days after receipt of written notice from the Government, shall make a payment to the Government in an amount equal to the difference by delivering a check payable to "FAO, USAED,Norfolk District E4"to the District Engineer or by providing an Electronic Funds Transfer in accordance with procedures established by the Government. b. Should the interim or final accounting, as applicable, show that the total contribution of funds provided by the Non-Federal Sponsor for including betterments in the design of the Project exceeds the total obligations for design of such betterments, the Government, subject to the availability of funds, shall refund the excess amount to the Non-Federal Sponsor within 90 calendar days of the date of completion of such accounting. In the event the Non-Federal Sponsor is due a refund and funds are not available to refund the excess amount to the Non-Federal Sponsor, the Government shall seek such appropriations as are necessary to make the refund. If such appropriations are not received or, if the Non-Federal Sponsor requests that the Government not refund the excess amount to the Non-Federal Sponsor, the Government shall apply the excess amount toward the share of total project costs for the Project that is required of the non- Federal interest executing a Project Partnership Agreement or agreements for the Project or separable element thereof in accordance with Article II.F. of this Agreement. ARTICLE V- DISPUTE RESOLUTION As a condition precedent to a party bringing any suit for breach of this Agreement, that party must first notify the other party in writing of the nature of the purported breach and seek in good faith to resolve the dispute through negotiation. If the parties cannot resolve the dispute through negotiation, they may agree to a mutually acceptable method of non-binding alternative dispute resolution with a qualified third party acceptable to both parties. Each party shall pay an equal share of any costs for the services provided by such a third party as such costs are incurred. The existence of a dispute shall not excuse the parties from performance pursuant to this Agreement. ARTICLE VI—HOLD AND SAVE Tthe Non-Federal Sponsor shall hold and save the Government free from all damages arising from design of the Project and any betterments, except for damages due to the fault or negligence of the Government or its contractors. ARTICLE VII - MAINTENANCE OF RECORDS AND AUDIT A. Not later than 60 calendar days after the effective date of this Agreement,the Government and the Non-Federal Sponsor shall develop procedures for keeping books, records, documents, or other evidence pertaining to costs and expenses incurred pursuant to this Agreement. These procedures shall incorporate, and apply as appropriate,the standards for financial management systems set forth in the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments at 32 C.F.R. Section 10 33.20 . The Government and the Non-Federal Sponsor shall maintain such books,records, documents, or other evidence in accordance with these procedures and for a minimum of three years after completion of the accounting for which such books,records, documents, or other evidence were required. To the extent permitted under applicable Federal laws and regulations,the Government and the Non-Federal Sponsor shall each allow the other to inspect such books,records,documents,or other evidence. B. In accordance with 32 C.F.R. Section 33.26,the Non-Federal Sponsor is responsible for complying with the Single Audit Act Amendments of 1996 (31 U.S.C. 7501- 7507), as implemented by Office of Management and Budget(OMB) Circular No. A-133 and Department of Defense Directive 7600.10. Upon request of the Non-Federal Sponsor and to the extent permitted under applicable Federal laws and regulations,the Government shall provide to the Non-Federal Sponsor and independent auditors any information necessary to enable an audit of the Non-Federal Sponsor's activities under this Agreement. The costs of any non-Federal audits performed in accordance with this paragraph shall be allocated in accordance with the provisions of OMB Circulars A-87 and A-133, and such costs as are allocated to the Project shall be included in total design costs and shared in accordance with the provisions of this Agreement. C. In accordance with 31 U.S.C. 7503,the Government may conduct audits in addition to any audit that the Non-Federal Sponsor is required to conduct under the Single Audit Act Amendments of 1996. Any such Government audits shall be conducted in accordance with Government Auditing Standards and the cost principles in OMB Circular A-87 and other applicable cost principles and regulations. The costs of Government audits performed in accordance with this paragraph shall be included in total design costs and shared in accordance with the provisions of this Agreement. ARTICLE VIII - FEDERAL AND STATE LAWS In the exercise of their respective rights and obligations under this Agreement, the Non-Federal Sponsor and the Government shall comply with all applicable Federal and State laws and regulations, including,but not limited to: Section 601 of the Civil Rights Act of 1964,Public Law 88.352 (42 U.S.C. 2000d) and Department of Defense Directive 5500.11 issued pursuant thereto and Army Regulation 600-7, entitled "Nondiscrimination on the Basis of Handicap in Programs and Activities Assisted or Conducted by the Department of the Army". ARTICLE IX - RELATIONSHIP OF PARTIES A. In the exercise of their respective rights and obligations under this Agreement, the Government and the Non-Federal Sponsor each act in an independent capacity, and neither is to be considered the officer, agent, or employee of the other. B. In the exercise of its rights and obligations under this Agreement,neither party shall provide, without the consent of the other party, any contractor with a release that waives or purports to waive any rights the other party may have to seek relief or redress 11 against that contractor either pursuant to any cause of action that the other party may have or for violation of any law. ARTICLE X - TERMINATION OR SUSPENSION A. If at any time the Non-Federal Sponsor fails to fulfill its obligations under this Agreement,the Assistant Secretary of the Army(Civil Works) shall terminate this Agreement or suspend future performance under this Agreement unless the Assistant Secretary of the Army(Civil Works) determines that continuation of design of the Project is in the interest of the United States or is necessary in order to satisfy agreements with any other non-Federal interests in connection with the Project. B. In the event the Government projects that the amount of Federal funds the Government will make available to the Project through the then-current fiscal year, or the amount of Federal funds the Government will make available for the Project through the upcoming fiscal year, is not sufficient to meet the Federal share of total design costs that the Government projects to be incurred through the then-current or upcoming fiscal year, as applicable, the Government shall notify the Non-Federal Sponsor in writing of such insufficiency of funds and of the date the Government projects that the Federal funds that will have been made available to the Project will be exhausted. Upon the exhaustion of Federal funds made available by the Government to the Project, future performance under this Agreement shall be suspended. Such suspension shall remain in effect until such time that the Government notifies the Non-Federal Sponsor in writing that sufficient Federal funds are available to meet the Federal share of total design costs the Government projects to be incurred through the then-current or upcoming fiscal year, or the Government or the Non-Federal Sponsor elects to terminate this Agreement. C. In the event the Government determines that modifications to the Project are required and that additional authorization by Congress will be required before the Government may construct such modifications, the Government shall notify the Non- Federal Sponsor in writing of such determinations and shall terminate this Agreement. D. In the event that this Agreement is terminated pursuant to this Article,both parties shall conclude their activities relating to the Project and conduct an accounting in accordance with Article IV.C. of this Agreement. To provide for this eventuality, the Government may reserve a percentage of total Federal funds made available for the Project and an equal percentage of the total funds contributed by the Non-Federal Sponsor in accordance with Article II.B.1. of this Agreement as a contingency to pay costs of termination, including any costs of resolution of contract claims and contract modifications. E. Any termination of this Agreement or suspension of future performance under this Agreement in accordance with this Article shall not relieve the parties of liability for any obligation previously incurred. Any delinquent payment owed by the Non-Federal Sponsor shall be charged interest at a rate,to be determined by the Secretary of the Treasury, equal to 150 per centum of the average bond equivalent rate of the 13 week 12 Treasury bills auctioned immediately prior to the date on which such payment became delinquent, or auctioned immediately prior to the beginning of each additional 3 month period if the period of delinquency exceeds 3 months. ARTICLE XI -NOTICES A. Any notice,request, demand, or other communication required or permitted to be given under this Agreement shall be deemed to have been duly given if in writing and delivered personally or sent by telegram or mailed by first-class,registered, or certified mail, as follows: If to the Non-Federal Sponsor:Public Works Engineering 2405 Courthouse Drive, 3rd Floor Virginia Beach, VA 23456 Attention: Water Resources Project Manager If to the Government: 803 Front Street,Norfolk,VA 23510 Attention: PPMD-C. B. A party may change the address to which such communications are to be directed by giving written notice to the other party in the manner provided in this Article. C. Any notice,request, demand, or other communication made pursuant to this Article shall be deemed to have been received by the addressee at the earlier of such time as it is actually received or seven calendar days after it is mailed. ARTICLE XII - CONFIDENTIALITY To the extent permitted by the laws governing each party,the parties agree to maintain the confidentiality of exchanged information when requested to do so by the providing party. ARTICLE XIII - THIRD PARTY RIGHTS, BENEFITS, OR LIABILITIES Nothing in this Agreement is intended, nor may be construed, to create any rights, confer any benefits, or relieve any liability, of any kind whatsoever in any third person not party to this Agreement. [intentionally left blank] 13 IN WITNESS WHEREOF,the parties hereto have executed this Agreement,which shall become effective upon the date it is signed by the. DEPARTMENT OF THE ARMY CITY OF VIRGINIA BEACH, VIRGINIA BY: BY: [TYPED NAME] James K. Spore COL, EN Commanding CITY MANAGER DATE: DATE: 14 CERTIFICATE OF AUTHORITY I, Mark D. Stiles,do hereby certify that I am the principal legal officer of the City of Virginia Beach,that the City of Virginia Beach is a legally constituted public body with full authority and legal capability to perform the terms of the Agreement between the Department of the Army and the City of Virginia Beach in connection with design of the LYNNHAVEN RIVER BASIN ECOSYSTEM RESTORATION PROJECT, and to pay damages,if necessary,in the event of the failure to perform in accordance with the terms of this Agreement and that the persons who have executed this Agreement on behalf of the City of Virginia Beach have acted within their statutory authority. IN WITNESS WHEREOF, I have made and executed this certification this day of 20 . Mark D. Stiles City Attorney Date: 15 CERTIFICATION REGARDING LOBBYING The undersigned certifies, to the best of his or her knowledge and belief that: (1) No Federal appropriated funds have been paid or will be paid,by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants,loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. James K. Spore City Manager DATE: 16 III -31- Item-VI-1.5a ORDINANCES/RESOLUTIONS ITEM#64919 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED,BY CONSENT, Ordinances to ACCEPT and APPROPRIATE: a. $174,457 in Insurance Recovery Revenue re "IT Service Continuity" Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 1 AN ORDINANCE TO APPROPRIATE $174,457 IN 2 INSURANCE RECOVERY REVENUE TO CIP 3 PROJECT #3-052, "IT SERVICE CONTINUITY" 4 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 That $174,457 is hereby appropriated, with insurance recovery revenue 9 increased accordingly, to CIP #3-052, "IT Service Continuity," as a partial 10 reimbursement of costs related to repairs of the video wall in the Traffic Management 11 Center. Adopted by the Council of the City of Virginia Beach, Virginia on the 2nd day of June 2015. Requires an affirmative vote by a majority of all the members of City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: t)Q;it Budget and Management Servi - Cit '110<y's Office CA13366 R-1 May 20, 2015 -32- Item -VI-I.5b ORDINANCES/RESOLUTIONS ITEM#64920 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED,BY CONSENT, Ordinances to ACCEPT and APPROPRIATE.: b. $ 50,000 from the Virginia Department of Fire Programs re training equipment Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 1 AN ORDINANCE TO ACCEPT AND APPROPRIATE GRANT 2 FUNDS TO THE FIRE DEPARTMENT FOR TRAINING 3 EQUIPMENT 4 5 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, 6 VIRGINIA: 7 8 That $50,000 in grant funding from the Virginia Department of Fire Programs is 9 hereby accepted and appropriated, with estimated state revenue increased accordingly, 10 to the FY 2014-15 Operating Budget of the Fire Department to purchase a vehicle fire 11 prop for training. Adopted by the Council of the City of Virginia Beach, Virginia, on the 2nd day of June , 2015. Requires an affirmative vote by a majority of all members of the City Council. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Budget and Management Service Cit '4 'me 's Office CA13365 R-1 May 20, 2015 -33- Item—VI-J PLANNING ITEM#64921 1. JEFFREY A. and SUZANNE BREIT CHANGE IN NON-CONFORMING USE 2. THOMAS R. and JOAN G.ECKERT CONDITIONAL CHANGE OF ZONING 3. AMEND FLOODPLAIN ORDINANCE 4a/b. EXTENSION SATISFYING CONDITIONS STREET CLOSUES MAYOR SESSOMS WILL ABSTAIN ON ITEM#2 MAYOR SESSOMS WILL ABSTAIN ON ITEMS 4a/b June 2, 2015 -34- Item -VI-J PLANNING ITEM#64922 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED, BY CONSENT, Items 1, 2(MAYOR ABSTAIN), 3 and 4 a/b (MAYOR ABSTAIN) of the PLANNING AGENDA. Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 -35- Item—VI-J.1 PLANNING ITEM#64923 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED and CONDITIONED, BY CONSENT, Application of JEFFREY A. and SUZANNE BREIT for a change in a Non-Conforming Use re structure enlargement at 608 Linkhorn Drive DISTRICT 6—BEACH BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon JEFFREY A. and SUZANNE BREIT for a change in a Non-Conforming Use re structure enlargement at 608 Linkhorn Drive (GPIN 2418744664)DISTRICT 6—BEACH The following conditions shall be required: 1. The Site shall be developed in substantial conformance with the submitted Site Plan entitled "NON-CONFORMING USE EXHIBIT SITE 169-A, VIRGINIA BEACH, VIRGINIA FOR JEFFERY BREIT, IMPROVEMENT PLAN" dated March 11, 2015, and prepared by WPL Landscape Architecture, Land Surveying, Civil Engineering. 2. The detached accessory structure shall be developed in substantial conformance with the submitted Building Elevation entitled "FRONT ELEVATION ACCESSORY STRUCTURES, SCHEME A", dated January 21, 2015. 3. The accessory structure shall not be used as a dwelling unit independent of the principal dwelling unit. No person shall be permitted to establish permanent residence in the accessory structure This Ordinance shall be effective in accordance with Section 1070 of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of June, Two Thousand Fifteen. June 2, 2015 -36- Item—VI-J.1 PLANNING ITEM#64923 (Conditioned) Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 1 A RESOLUTION AUTHORIZING THE ENLARGEMENT OF 2 A NONCONFORMING USE ON PROPERTY LOCATED AT 3 608 LINKHORN DRIVE 4 5 WHEREAS, Jeffrey and Suzanne Breit, (hereinafter the "Applicant") have made 6 application to the City Council for authorization to enlarge a nonconforming use located 7 at 608 Linkhorn Drive in the R-40 Residential District by constructing an addition to a 8 garage apartment and an addition to the principal dwelling on the lot; and 9 10 WHEREAS, this lot currently contains two single-family dwellings, which is not 11 allowed in the R-40 Residential District; and 12 13 WHEREAS, the dwellings were built prior to the adoption of the applicable zoning 14 regulations and are therefore nonconforming; and 15 16 WHEREAS, pursuant to Section 105 of the City Zoning Ordinance, the 17 enlargement of a nonconforming use is unlawful in the absence of a resolution of the 18 City Council authorizing such action upon a finding that the proposed use, as enlarged, 19 will be equally appropriate or more appropriate to the zoning district than is the existing 20 use. 21 22 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 23 VIRGINIA BEACH, VIRGINIA: 24 25 That the City Council hereby finds that the proposed use of the lot, as enlarged, 26 will be equally appropriate to the district as is the existing nonconforming use under the 27 conditions of approval set forth herein below. 28 29 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA 30 BEACH, VIRGINIA: 31 32 That the enlargement of the nonconforming use is hereby authorized, upon the 33 following conditions: 34 35 1. The site shall be developed in substantial conformance with the submitted 36 site plan entitled "NON-CONFORMING USE EXHIBIT SITE 169-A, 37 VIRGINIA BEACH, VIRGINIA FOR JEFFERY BREIT, IMPROVEMENT 38 PLAN," dated March 11, 2015, and prepared by WPL Landscape 39 Architecture, Land Surveying, Civil Engineering. 40 41 2. The detached accessory structure shall be developed in substantial 42 conformance with the submitted building elevation entitled "FRONT 43 ELEVATION ACCESSORY STRUCTURES, SCHEME A," dated January 44 21, 2015. 45 46 3. The accessory structure shall not be used as a dwelling unit independent 47 of the principal dwelling unit. No person shall be permitted to establish 48 permanent residence in the accessory structure. 49 Adopted by the Council of the City of Virginia Beach, Virginia, on the 2nd day of June , 2015. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: (0 • 011 A 44L Planni • � .rtment City Attorney's Office CA13363 R-2 May 20, 2015 2 -37- Item -VI-J.2 PLANNING ITEM#64924 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council APPROVED, AS PROFFERED, BY CONSENT, Application of THOMAS R. and JOAN G. ECKERT for a Conditional Change of Zoning from R-7.5 Residential to Conditional PD-H2 Planned Development, R-5D Residential and Conditional B-1A Business re office and residential use at 4444 Shore Drive(Deferred May 5, 2015) DISTRICT 4—BAYSIDE BE IT HEREBY ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Ordinance upon THOMAS R. and JOAN G. ECKERT for a Conditional Change of Zoning from R-7.5 Residential to Conditional PD-H2 Planned Development, R-5D Residential and Conditional B-1A Business re office and residential use at 4444 Shore Drive (Deferred May 5, 2015) (GPIN 1479774911)DISTRICT 4—BAYSIDE The following conditions shall be required: An Agreement encompassing proffers shall be recorded with the Clerk of Circuit Court This Ordinance shall be effective in accordance with Section 1070 of the Zoning Ordinance. Adopted by the City Council of the City of Virginia Beach, Virginia, on the Second day of June, Two Thousand Fifteen. Voting: 10-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Abstaining: Mayor William D. Sessoms, Jr. Council Members Absent: None June 2, 2015 cplifiC BEA City of Virginia 1 leach Op OUR NATION5 V Bggov.COm WILLIAM D.SESSOMS,JR. MUNICIPAL CENTER MAYOR BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9000 (757)385-4581 FAX(757)385-5699 wsessoms @ vbgov.com In Reply Refer to 0055052 June 2, 2015 Mrs. Ruth Hodges Fraser, MMC City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115(F) Dear Mrs. Fraser: Pursuant to the State and Local Government Conflict of Interests Act, I make the following declaration: 1. I am executing this written disclosure regarding City Council's discussion and vote on the application of Thomas R. and Joan G. Eckert for a Conditional Change of Zoning from R-7.5 Residential to Conditional PD-H2 Planned Development(R-5D Residential) and Conditional B-IA Business for property located at 4444 Shore Drive. 2. The applicant has listed TowneBank as a financial services provider with respect to the application. 3. I have a personal interest in TowneBank, which is located at 600 22nd Street in Virginia Beach. 4. I hereby disclose this interest and will abstain from voting on this matter. Mrs. Ruth Hodges Fraser -2- June 2, 2015 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115(F) Accordingly, I respectfully request that you record this declaration in the official records of City Council. Thank you for your assistance and cooperation in this matter. Sincerely, illiam D. S oms Mayor WI)S/RRI -38- Item -VI-J.3 PLANNING ITEM#64925 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, ADOPTED, BY CONSENT, Ordinance to AMEND§§4.3, 4.9, 5.1 and 6.1 of the Floodplain Ordinance re Recreational Resort Communities Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 1 AN ORDINANCE TO AMEND SECTIONS 2 4.3, 4.9, 5.1 AND 6.1 OF THE FLOODPLAIN 3 ORDINANCE PERTAINING TO ELEVATION 4 AND CONSTRUCTION REQUIREMENTS, 5 WATER LOADING, MANUFACTURED 6 HOUSING, EXISTING STRUCTURES IN THE 7 FLOODPLAIN AND ADMINISTRATIVE 8 VARIANCES 9 10 Sections Amended: Floodplain Ordinance §§ 4.3, 4.9, 11 5.1 and 6.1 12 13 WHEREAS, the public necessity, convenience, general welfare and good zoning 14 practice so require; 15 16 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 17 BEACH, VIRGINIA: 18 19 That Sections 4.3, 4.9, 5.1 and 6.1 of the Floodplain Ordinance is hereby 20 amended and reordained to read as follows: 21 22 ARTICLE I. - GENERAL PROVISIONS 23 24 . . . . 25 26 ' ARTICLE IV. FLOODPLAIN DISTRICT PROVISIONS 27 28 . . . . 29 30 Sec. 4.3. Elevation and construction requirements. 31 32 In all SFHAs where base flood elevations have been provided in the FIS or 33 generated by a licensed professional in accordance with section 4.6 of this ordinance, 34 the following provisions shall apply: 35 36 . . . . 37 38 C. Space below the lowest floor requirements. 39 40 In zones A, AE, AH, and AO, fully enclosed areas of new construction or 41 substantially improved existing structures that are below the regulatory flood protection 42 elevation shall: 43 44 1. Not be designed or used for human habitation, but shall only be used for 45 parking of vehicles, building access, or limited storage of maintenance 46 equipment used in connection with the premises. Access to the enclosed 47 area shall be the minimum necessary to allow for parking of vehicles 48 (garage door), limited storage of maintenance equipment (standard 49 exterior door), or entry to the living area (stairway or elevator). 50 51 2. Be constructed entirely of flood resistant materials below the regulatory 52 flood protection elevation. 53 . . . . 54 55 D. Manufactured homes and recreational vehicle requirements. 56 57 1. All manufactured homes placed, or substantially improved, on individual 58 lots or parcels or in an existing manufactured home park or in a 59 Recreational Resort Community must meet all the requirements for new 60 construction, including the elevation and anchoring requirements in article 61 4, section 4.2, and section 4.3 of this ordinance. 62 63 . . . . 64 65 COMMENT 66 67 The amendment clarifies current practices related to manufactured homes and adds those 68 located in the recently adopted Recreational Resort Community. 69 70 Sec. 4.9. V and VE Zone requirements. 71 72 The following provisions shall apply within V and VE Zones: 73 74 . . . . 75 76 E. A professional engineer or architect licensed by the Commonwealth of Virginia 77 shall develop and seal the structural design, specifications and plans for 78 construction, and shall certify that the design and methods of construction to be 79 used meet the following requirements: 80 81 1. All new construction and substantial improvements shall have the space 82 below the lowest floor either free of obstruction or constructed with non- 83 supporting breakaway walls, open wood-lattice work, or insect screening 84 intended to collapse under wind and water loads without causing collapse, 85 displacement, or other structural damage to the elevated portion of the 86 building or supporting foundation system. 2 87 2. For the purpose of this section, a breakaway Breakaway walls shall have 88 a design safe loading resistance of not less than ten (10) and no more 89 than twenty (20) pounds per square foot. 90 3. The Use use of breakaway walls that exceed a design safe loading 91 resistance of twenty (20) pounds per square foot may be permitted only if 92 a professional engineer or architect licensed by the Commonwealth of 93 Virginia certifies that the designs proposed meet the following conditions: 94 1,a. Breakaway wall collapse shall result from water load less than that 95 which would occur during the base flood; and 96 97 2.b. The elevated portion of the building and supporting foundation 98 system shall not be subject to collapse, displacement, or other 99 structural damage due to the effects of wind and water loads acting 100 simultaneously on all building components (structural and 101 nonstructural). Maximum wind and water loading values to be used 102 in this determination shall each have a one (1) percent chance of 103 being equaled or exceeded in any given year. Water loading values 104 shall be those associated with the base flood elevation on the 105 FIRMs. Wind loading values shall be those required by the Virginia 106 Uniform Statewide Building Code (VA USBC). 107 108 F. The enclosed space below the lowest floor shall be used solely for parking of 109 vehicles, building access, or storage. Such space shall not be partitioned into 110 multiple rooms, temperature-controlled, or used for human habitation. 111 112 G. The use of fill for structural support of buildings is prohibited. When non- 113 structural fill is proposed in a coastal high hazard area, appropriate engineering 114 analyses shall be conducted to evaluate the impacts of the fill prior to issuance 115 of a development permit. 116 117 H. Existing nonconforming uses and structures located below the level of the base 118 flood elevation, as shown in the FIS and accompanying FIRMs, shall not be 119 expanded. 120 121 I. The man-made alteration of sand dunes, which would increase potential flood 122 damage, is prohibited. 123 124 J. Manufactured homes are prohibited. 125 126 . . . . 127 128 COMMENT 129 130 The amendment clarifies requirements for structures built in a VE zone. 3 131 132 ARTICLE V. EXISTING STRUCTURES IN FLOODPLAIN AREAS 133 134 Sec. 5.1. Existing structures. 135 136 A structure or use of a structure or premises that lawfully existed prior to the 137 adoption of this ordinance, but which is not in conformity with this ordinance, may be 138 continued subject to the following conditions: 139 140 A. Any existing structures in the floodway area shall not be expanded or enlarged 141 unless it has been demonstrated through hydrologic and hydraulic analyses 142 performed in accordance with standard engineering practices that the proposed 143 expansion or enlargement would not result in any increase in the base flood 144 elevation. 145 146 B. Any modification, alteration, repair, reconstruction, or improvement of any kind 147 to a structure and/or use located in any floodplain areas to an extent or amount 148 of less than fifty (50) percent of its market value shall conform to the VA USBC 149 and meet the freeboard height in effect at the start of construction for the 150 original structure. 151 152 C. Any modification, alteration, repair, reconstruction, or improvement of any kind 153 to a structure and/or use, in a floodplain area to an extent or amount of fifty (50) 154 percent or more of its market value shall be undertaken only in full compliance 155 with this ordinance and shall require the entire structure to conform to the VA 156 USBC. 157 158 COMMENT 159 160 The amendment reflects current practices that require home improvements to be elevated 161 at least to the height of the existing structure. 162 163 ARTICLE VI. VARIANCES AND APPEALS 164 165 Sec. 6.1. Administrative variances. 166 167 The floodplain administrator shall approve or deny an application requesting an 168 administrative variance after receipt of a complete application. Administrative variances 169 may only be granted for the following uses, development, or redevelopment: 170 171 A. A residential attached garage or detached garages constructed at the elevation 172 - - -- - - - -- -- ' --- ' - - • - --- - -- - - - - - - - • - 173 - •• - - _ _ --_ - - - ' •- =• - - - - - - _ - - - -174 requirements. 175 176 BA.As defined in section 4.10, floodplains subject to special restrictions, for filling 177 only. 4 178 179 GB.Any structure or use sustaining damage not caused by flood to an extent or 180 amount of fifty (50) percent or more of its market value to allow the structure to 181 be rebuilt to the freeboard height in effect at the start of construction for the 182 original structure. If the structure is a pre-FIRM structure, full compliance with 183 the current VAUSBC freeboard above the base flood elevation is required. 184 Structures that are utilizing an approved land management plan for their on-site 185 waste disposal may be allowed to continue the use of the land management 186 plan as long as it is approved by the city and the health department, even for 187 damage or destruction resulting from flood. 188 189 COMMENT 190 191 The amendment clarifies and makes this section consistent with Sections 4.3.0 and 4.10.B.2. 192 Adopted by the Council of the City of Virginia Beach, Virginia, on the 2nd day of June , 2015. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: )41W/id i\ )(iiketZ Planning i'! •artment ' City Attorneys Office CA13129 R-6 May 19, 2015 5 -39- Item -VI-J.4a PLANNING ITEM#64926 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, APPROVED, BY CONSENT, Ordinances to GRANT extensions for satisfying conditions of Street Closures granted June 17, 2014: a. Former Oakmears Crescent now part of relocated Princess Anne Road Voting: 10-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Abstaining: Mayor William D. Sessoms,Jr. Council Members Absent: None June 2, 2015 1 AN ORDINANCE EXTENDING THE DATE 2 FOR SATISFYING THE CONDITIONS IN THE 3 MATTER OF CLOSING A PORTION OF THE 4 FORMER OAKMEARS CRESCENT RIGHT- 5 OF-WAY NOW PART OF PRINCESS ANNE 6 ROAD (RELOCATED), CONTAINING 2,129 7 SQ. FT. 8 9 WHEREAS, on June 17, 2014, City Council acted upon the application of 10 the City of Virginia Beach (the "Applicant") for the closure of a portion of the former 11 Oakmears Crescent right-of-way, now part of Princess Anne Road (Relocated), as 12 shown on Exhibit A attached hereto; 13 14 WHEREAS, on June 17, 2014, City Council adopted an Ordinance (ORD- 15 3357E) to close the aforesaid right-of-way, subject to certain conditions being met on or 16 before June 16, 2015; and 17 18 WHEREAS, on April 30, 2015, the Applicant requested an extension of 19 time to satisfy the conditions to the aforesaid street closure action. 20 21 NOW, THEREFORE, BE IT ORDAINED by the Council of the City of 22 Virginia Beach, Virginia: 23 24 That the date for meeting conditions of closure as stated in the Ordinance 25 adopted on June 17, 2014 (ORD-3357E), upon application by the City of Virginia Beach, 26 is extended to June 16, 2016. 27 28 Adopted by the Council of the City of Virginia Beach, Virginia, on this 29 2nd day of June , 2015. 30 31 GPIN: Right-of-way/ No GPIN assigned 32 Adjacent to GPIN 1466-68-6554 APPROVED AS TO LEGAL APPROVED AS TO CONTENT: SUFFICIENCY: -mit, City Attorney Planni Dvartment CA13217 \\vbgov.com\DFS1Wpplications\CityLawProd\cycom32\W pdocs\D012\P016\00060960.DOC R-1 May 22, 2015 - EXHIBIT A 1 N55-2.9'07° 1.?5' ' SHEET Or A FOR Is' DR,:INADE- AS MEN? ;/ / ADDITIONAL NOTES AND r' JIMMY V. ROSE - URVE DATA.TABLE 1C' vUEATENT OF OJMINIO;, VA -� � � \),I.POWER (FORMERLY APCs) 1466-6S-5709 (0.5. Ape, P. 3211—��,'_� 4,`, (0.6. 2479, P 1217) J, �'`� _ (M.B. 114, P. 21) N 1T1652' ' / 'r>: o' EASEMENT OF VERIZON 49.31' �\ � (FORMERLY CHESAPEAKE S POTOMAC Al\ / / N`,, <'`N/ `Y— TELEPHONE COMPANY OF VIRGINIA) j -' N J�. � (0.6 1950. P 446) i 6' EASEMENT OF DOMINION \ \ 1 ` ') VA POWER (FORMERLY A2PCo) \.N `��"'` I 'S' UTILITY EASEMENT w1 \ /\ \ ( Ivo\ (O.E3.2i66, P 20341 ".\,- �� `� M.E 114, P. 21) i-✓ r "\��C1 cok / 20' DRAINAGE EASEMENT _ %`' N '` /705' X40 � k" (M.B. 114. P. 21) � /1N N 0 '-. 4\\�,0 / NSF ' l• Y. o° P\ .* i OAKMEARS INVESTORS, LLC yI VAR WITH PERMANENT ��tt f` Q �' 1466-68-6554 ��`_DRAINAGE EASEMENT wg-O �,Oh A• � / (0.8. 4061, P. 1601) ,'' (INST 20091019001219670) t g- Y (U.S. 170, P. 42)kt A JQ 00 0� h� / VAR WIDTH TEMPORARY PROPOSED 57RET CLOSURE CONSTRUCTION EASEMENT APPROX LOCATION OF 10' / (2,129 SQ. F7, 0.049 AC.) r 1 -) / (INST 20Q91019001219670) EASEMENT OF DOMINION VA , ��1 (7 / L O f 56 POWER (FORMERLY VEPCo) / Qi (D.O. 2059, P. 564) " ® KEAt�PS�ILLE ,� / OFF/CE PARK , —. k - - i .. '' e - , — / . Z H / 4PpIXlSTIN6 R/W UNE s ? o rn N / C CC O o / � R,F �g41 OF 1p' L \\\ PROPOSED R/W UNE , Cl) - o z o (D-g 196 OR.uE/r,LY k/ON�A ✓ V.. z CJ 0 ` / 9 p s t'F-PCo� \ \ ` 1.. CN 1 m a W V� / B) 1 5' EASEMENT OF VERIZON (FORMERLY \ Z Z = CHESAPEAKE & POTOMAC TELEPHONE C / COMPANY OF VIRGINIA (0.6. 1960, P. 448) b C APPROX LOCATION OF 10' / / 5' DRAINAGE k � J EASEMENT OF DOMINION VA / UTILITY EASEMENT \ POWER (FORMERLY VEPCo) (M,B. 114, P. 21) PA. I (D.B. 1964,P. 578)�/ / \ '' I / `� \ ,�' ;-- I N 4710'00- W AL,�H o� 24.54' / / -� , , i • CI / 219 #J0:11.0 YI i --,s / -4 , 5% N/F : TRAVIS M. FOX 36 - "-,\�<- KEMPSVILLE OFFICE PARK U L. No. 28" 8 (A CONDOMINIUM) 2/ 15/ ,Z A -�. 1466-68-8515 �' \ INST 200306110089864) t� 10' EASEMENT C DOMINION POWER ( ) 1A1 Y • (FORMERLY'FPCo)(D.B. 1706. P. 323) & (INST 200306110089663 -Y �r T i p 10' DRAINAGE EASEMENT (M.B. 114. P. 21) . til U Lti� I �__ _ - STREET CLOSURE E�BIT SHEET 1 OF 2 OF I -- . = 2,129 SQ. FT. (0.048 AC.) OF - - —1M- PRINCESS ANNE ROAD ', c ADJACENT TO � � > LOT 56, KEMPSVii.T,F 0t`t�'ICE PARK -F PLAT RECORDED IN M.B. 170, P. 42 IN THE CLERK'S OFFICE OF - THE CIRCUIT COURT OF THE CITY OF `IRGINIA VIRGINIA VIRGINIA —t_ VIRGINIA BEACH, Landscape Architecture For LonSurvoC'Ihtl Eng nen ng VIRGINIA BEACH ECONOMIC DEVELOPMENT wplsite.com 757.431.104110 FEBRUARY, 2 , 201 142 WSW TAAL SLE 8 VOL M23452 SCALE: 1" = 60' JN: -03 2 CAD/chk: TMF/els VIRGINIA BEACH, VIRGINIA I F.B. PG. PLAT: EVV*: \General Survey\211-0348 PA & Witchduck DevelopmentA�Drawings\211-0348STCLOSEc Jti�`G�14IA.BEAc µf City of Virgiriia 1 leach T4. 4' °P OUR NM'° VBgov.com WILLIAM D.SESSOMS,JR. MUNICIPAL CENTER MAYOR BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9000 (757)385-4581 FAX(757)385-5699 wsessoms@vbgov.com In Reply Refer to 0055053 June 2, 2015 Mrs. Ruth Hodges Fraser, MMC City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115(F) Dear Mrs. Fraser: Pursuant to the State and Local Government Conflict of Interests Act, I make the following declaration: 1. I am executing this written disclosure regarding City Council's discussion and vote on(1)An Ordinance Extending the Date for Satisfying the Conditions in the Matter of Closing a Portion of the Former Oakmears Crescent Right-of-Way,Now Part of Princess Anne Road (Relocated), Containing 2,129 Sq. Ft.; and (2) An Ordinance Extending the Date for Satisfying the Conditions in the Matter of Closing a Portion of the Unimproved Right-of-Way Known as Oakmears Crescent (Relocated), Containing 54,378 Sq. Ft. 2. Kempes Village,L.L.C. is the contract purchaser of the land that is the subject of the two ordinances. Kempes Village, L.L.C. has identified TowneBank as a financial services provider with respect to the purchase. 3. I have a personal interest in TowneBank, which is located at 600 22nd Street in Virginia Beach. Mrs. Ruth Hodges Fraser -2- June 2, 2015 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115(F) 4. I hereby disclose this interest and will abstain from voting on this matter. Accordingly, I respectfully request that you record this declaration in the official records of City Council. Thank you for your assistance and cooperation in this matter. Sincerely, William D. Sessoms Mayor WDS/RRI -40- Item -VI-J.46 PLANNING ITEM#64927 Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council, APPROVED, BY CONSENT, Ordinances to GRANT extensions for satisfying conditions of Street Closures granted June 17, 2014: a. Unimproved right-of-way of Oakmears Crescent Voting: 10-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, John D. Moss, Amelia N. Ross-Hammond, John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Abstaining: Mayor William D. Sessoms, Jr. Council Members Absent: None June 2, 2015 1 AN ORDINANCE EXTENDING THE DATE 2 FOR SATISFYING THE CONDITIONS IN THE 3 MATTER OF CLOSING A PORTION OF THE 4 UNIMPROVED RIGHT-OF-WAY KNOWN AS 5 OAKMEARS CRESCENT (RELOCATED) 6 CONTAINING 54,378 SQ. FT. 7 8 WHEREAS, on June 17, 2014, City Council acted upon the application of 9 the City of Virginia Beach (the "Applicant") for the closure of a portion of unimproved 10 right-of-way as shown on Exhibit A attached hereto; 11 12 WHEREAS, on June 17, 2014, City Council adopted an Ordinance (ORD- 13 3357F) to close the aforesaid portion of unimproved right-of-way, subject to certain 14 conditions being met on or before June 16, 2015; and 15 16 WHEREAS, on April 30, 2015, the Applicant requested an extension of 17 time to satisfy the conditions to the aforesaid street closure action. 18 19 NOW, THEREFORE, BE IT ORDAINED by the Council of the City of 20 Virginia Beach, Virginia: 21 22 That the date for meeting conditions of closure as stated in the Ordinance 23 adopted on June 17, 2014 (ORD-3357F), upon application by the City of Virginia Beach, 24 is extended to June 16, 2016. 25 26 Adopted by the Council of the City of Virginia Beach, Virginia, on this 27 2nd day of June , 2015. 28 29 GPIN: Right-of-way/ no GPIN assigned 30 Adjacent to GPINs 1466-68-6554, 1466-68-2683, 31 1466-68-3419, 1466-68-3411, and 1466-68-4219 APPROVED AS TO LEGAL APPROVED AS TO CONTENT: SUFFICIENCY: City Attorney — Plann"�"•.rtment CA13218 1\vbgov.com\DFS 1Wpplications\CityLawProd\cycom32\W pdocs\D008\P022\00060417.DOC R-1 May 22, 2015 EXHIBIT A -- 1 VIRCNtA BEACH �, d �� FINANCIA1 CENSER, INC, ,: -r_ i _ L>i_ 466 or-5E5 Q�0-5 /1 # .-,,_ — _� p c243. F ,e5;, ' K r 11,1.E• i?, F. S".� -�� ' A�I~ ItI. Y�=tom`` - - .,- r / t ; t y 'r `' 4. / r ` �� Lic. 1�_a 878 C�zun My vs a _ ' }y / ' d t•ri,.- .�7J f-.� I0.. }rt" Cilj— "\r'"\.t •'` 11 •:�7 IQ will I. i t - `�' I.rr-: t I CCF-V' ,A y••C') „.... i•:\:' { �f kt 1 .1 �� tt '4'?..1i".1././....il--' .-- ' : An:0(11,Z4F:40,111( _� if FF Ltflr� 'r Vr 'Ca t m "L 1-,,,--- '` Z. '•- `' X�-xc X �' ;;• `• {"r `—J1I',JIMMY V. ROSE 5C rr urG ca€uL ' .s:+ r ? • 1466-f,3-.5-10S, fug 5 0 IG) 4 � `t` �. (D . 1'J A ri:?} (C•; 7749, r. "'c•i 1i �. f: cs' `ti, (i1.B. 1§i P. 7,1:, �� \ . - I :,s <` ,��”} / EGF,. hr ..>- nU'r.f+tiA OAKMEARS INVESTORS, LLC - "� : ;"';W c (t�`S'itiEt:I7 �'a7'oi 5&-6E-55iA C, h+G 44, P. 1�. rl` ,F.- .' 1%,Ce j{ `V I i. I (M.B. I'm, P. 'C2) _, ,,, /,...., , _ _ �' ,t•'-�.QCT: C ! `� " c'''" 1 1 II % ▪ -• Xii 1 ,' {+f�S a,P`-'y,, tS wy3'h TNPOP.S:FN x 10 TL \ . Uy��!5�J� ,A. r IL L.co.LTJ ita4 45Eu 4. -ti^� r�• C I �NEt i 1F. E tura(' 'x�luEti; — ' X freff 7CC'3 0140�1^14G70j ri .- V7 C11 rSwL Irv. P t•.•33) .Nr 57rt T a;5�`Ir G1 .1 OT 5 AND > j I' t;�Tg F7, x. f$ rCG J G r w .. IF.ItF IiriA; r�L= L '4 ' 1 - - 4.. s. _ .x^' ., �.-� Iik?'Atm f"k,wi1:6i1 �' 'may Cy.E 4° X5_.,.1 ,,4 S0Yur 2:119111?.!1::1a J} .--,IgJ9 % Z71Z �~ T. -y 48 ti El; I ,,fir ., 1 _. ir11+ 3� 1 �' � �`= ,* ° . ,�z ' `- 51 Fu o L , 22-9.9 }�` �} I .,, ,Via./, "I-'. `-C` it flF y�,�y,/'-;;e^¢ L. 1 2, 9. Y ,};.. / f+,,y, A r'-o• 44'w2-$ i fi ; ,, F . {x f +•� ,, 2,i ta - 1 ''',, v' °' ' >" �r r KEMPSVILLE OFFICE PARK I 1 �- I a:�l1,1i51 r ua�,w� o-55247 .?' `;C 4:,. :C "I,L1 ' Cly It 10ra �yD-1,29ss31e x ' C0 gif t i< 6-68-b515 II n fk. ' , kc'7 {I~';5,r 200205r 100896E4) c-) 702-3 3 ' (G0,t�y%1 ,tti. /' (tR:T 200336110(1n$6 3) ;1C� -r Wii ( / 1 0 Y .. THE SCHOOL BOARD OF '?,01-,,: ,p c�.p1 u c� c4,Ai(r v a� - o TH O1TY OF +it'�talhtlA B.EFICH &3.' 6�. 'w,�' t-,. :4-6,5-7S-13504."-,9- -,,• nvL-;Wt. I' D� , , (18. t 3,�. P. 445) '`P'" l- (AI.E1, 22 P. c0) — - STREET CLOSURE EXHIBIT SHEET I OF 2 OF _ = 54,378 SQ. F. (1.248 AC.) of OAI .ARS CRESCKNT 1.._..-3 ADJACENT TO :, I LOT 66 I� �3 SOFFICE PARK ()LB. 170, 7, 42), FAIRFI.ELD, SECTION FIFE 10'▪. ; ,- (M.B. 07, P. 101. propar'tp of VICENTE N. RONO, JI 6 CON1:ti.E''A N. RONO EM.B, 140. E'- :2), PABCEl. 22 f'D , LOT 7, SFIILE OFFICE P.BS'I11F' {M.E. P. ) ,.,R, Par ( 1.11. 114. P. 21) rad plat of b' C'S LANDING SCHOOL (r .Ei. 242, P 4 0) -^W, '"'""""w PUTT RECORDED IN THE CLERK'S OFFICE OF THi ClIC"IJIT COURT OF THE CTT:" OF ti1EG1 1 $E4E:[, "IHC:iCIA .,---.n.:•••=;----"' -. ,,..___....._r.M.. LckTh rciu r VIRGINIA BEACH, H, VIRGINIA LoT4 � For v` t Fn. ry vP41cr.on ?57.431.iG1VIRGINIA BEA HEC [ JE1C 1 IT 2470.5b� t vE S ' ski 0 ?3£. SCALE; I' = 1 IJ 10 FE BRRLARY, 2012 . ChDfchk: TMF'jd15 VIRGINIA BEACH, VIRGINIA F.H. PG. PIAT: IJN:2! I _();''1f; 1 AGy •131.1 � 41:G.-41, H 7 tO City of VII- irii i 1 3c .clh Q� U y2� 'k4`9R k Yo2 O ytS r+s OF OUR NA14 14 WILLIAM D.SESSOMS,JR. MUNICIPAL CENTER MAYOR BUILDING 1 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9000 (757)385-4581 FAX(757)385-5699 wsessoms @ vbgov.com In Reply Refer to 0055053 June 2, 2015 Mrs. Ruth Hodges Fraser, MMC City Clerk Municipal Center Virginia Beach, Virginia 23456 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115(F) Dear Mrs. Fraser: Pursuant to the State and Local Government Conflict of Interests Act,I make the following declaration: 1. I am executing this written disclosure regarding City Council's discussion and vote on(1) An Ordinance Extending the Date for Satisfying the Conditions in the Matter of Closing a Portion of the Former Oakmears Crescent Right-of-Way,Now Part of Princess Anne Road (Relocated), Containing 2,129 Sq. Ft.; and (2) An Ordinance Extending the Date for Satisfying the Conditions in the Matter of Closing a Portion of the Unimproved Right-of-Way Known as Oakmears Crescent (Relocated), Containing 54,378 Sq. Ft. 2. Kempes Village, L.L.C. is the contract purchaser of the land that is the subject of the two ordinances. Kempes Village, L.L.C. has identified TowneBank as a financial services provider with respect to the purchase. 3. I have a personal interest in TowneBank, which is located at 600 22nd Street in Virginia Beach. Mrs. Ruth Hodges Fraser -2- June 2, 2015 Re: Abstention Pursuant to Conflict of Interests Act § 2.2-3115(F) 4. I hereby disclose this interest and will abstain from voting on this matter. Accordingly, I respectfully request that you record this declaration in the official records of City Council. Thank you for your assistance and cooperation in this matter. Sincerely, . 0a 1,7/1,/e.f .A--%—.--, . 7 William D. Sessoms Mayor WDS/RRI -41- ITEM VI-K APPOINTMENTS ITEM#64928 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS: ARTS and HUMANITIES COMMISSION BAYFRONT ADVISORY COMMISSION BEACHES and WATERWAYS ADVISORY COMMISSION CLEAN COMMUNITY COMMISSION COMMUNITY SERVICES BOARD PERSONNEL BOARD PROCESS IMPROVEMENT STEERING COMMITTEE PUBLIC LIBRARY BOARD TIDEWATER YOUTH SERVICES COMMISSION TOWING ADVISORY BOARD Voting: 11-0 Council Members Voting Aye: M. Benjamin Davenport, Robert M. Dyer, Barbara M. Henley, Vice Mayor Louis R. Jones, Shannon DS Kane, 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 June 2, 2015 -42- Item -VI-N ADJOURNMENT ITEM#64929 Mayor William D. Sessoms,Jr., DECLARED the City Council Meeting ADJOURNED at 6:06 P.M. 1 Amanda Finley-Barnes, CMC Chief Deputy City Clerk th Hodges Fraser, MMC William D. Sessoms, Jr. City Clerk Mayor City of Virginia Beach Virginia June 2, 2015 -43- PUBLIC DIALOUGE Susan Neal Matousek advised she is a graduate of Frank W. Cox High School and received a scholarship to Radford University. She stated she has a disability and feels she deserves the same rights as everyone else. Ms. Matousek provided a letter dated June 2, 2015, which is on file in the City Clerk's Office. She opted not to read her letter since high school students were in attendance at the meeting. She requested a meeting with the Mayor, City Manager, representative from Human Resources and a Mediator. She advised she is a victim and survivor of domestic violence. She expressed her appreciation to the Cindy Curtis, Deputy City Manager, Samaritan House, Spring Brach and Wave Church for all of their assistance in helping her. She requested the City implement stricter "screening policies"for Police Officers and offer better training for conflict management in order to avoid abuse and discrimination against people with disabilities. The Public Dialogue re Non Agenda Items concluded at 6:10 P.M. June 2, 2015