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JUNE 9, 2015 MINUTES CITY OF VIRGINIA BEACH "COMMUNITY FOR A LIFETIME" G�r11A BE,gc CITY COUNCIL MAYOR WILLIAM D.SESSOMS,JR.,Al-Large U hb.11 VICE MAYOR LOUIS R,JONES,Bayside-District 4 M.BENJAMIN DAVENPORT-At Large i ROBERT M.DYER,Centerville-District I 'pyre ' „s BARBARA M.HENLEY,Princess Anne-District 7 ° woo SHANNON DS KANE,Rose Hall—District 3 JOHN D.MOSS,At-Large AMELIA N.ROSS-HAMMOND,Kempsville-District 2 JOHN E.UHRIN,Beach—District 6 ROSEMARY WILSON,At-Large JAMES L. WOOD,Lynnhaven-District 5 CITY HALL BUILDING 2401 COURTHOUSE DRIVE CITY COUNCIL APPOINTEES VIRGINIA BEACH, VIRGINIA 23456-8005 PHONE::(757)385-4303 CITY MANAGER-JAMES K.SPORE FAX(757)385-5669 CITY ATTORNEY- MARK D.STILES CITY ASSESSOR- .IERALD D.BANAGAN E-MAIL:ciycncl@vbgov.com CITY AUDITOR- LYNDON S.REMIAS CITY CLERK- RUTH HODGES FRASER,MMC CITY COUNCIL WORKSHOP AGENDA 9 June 2015 I. CITY COUNCIL BRIEFING - Conference Room - 4:00 PM A. PENDLETON CHILD SERVICE CENTER Lyndon Remias, City Auditor II. CITY MANAGER'S BRIEFINGS A. STATE OF VIRGINIA BEACH FAMILIES Andrew Friedman, Director, Housing and Neighborhood Preservation B. PACIFIC AVENUE IMPROVEMENTS PROJECT Michael Tippen, P.E., Public Works, Engineering C. SOUTHEASTERN PUBLIC SERVICE AUTHORITY (SPSA)—Post 2018 Dave Hansen, Deputy City Manager -1- uri �9A VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia June 9, 2015 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, June 9, 2015, at 4:00 P.M Council Members Present: 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 and Rosemary Wilson Council Members Absent: M. Benjamin Davenport Out of town City business James L. Wood Death in family June 9, 2015 -2- CITY COUNCIL'S BRIEFING PENDLETON CHILD SERVICE CENTER AUDIT 4:00 P.M. Mayor Sessoms welcomed Lyndon Remias, City Auditor. Mr. Remias expressed his appreciation to City Council for their continued support. Mr. Remias advised City Council received a copy of his letter dated June 4, 2015, regarding "Investigation 15-034 Department of Human Services — Pendleton Child Services Center". Initially, the letter was deemed "CONFIDENTIAL"; however, after consulting with Deputy City Attorney Rod Ingram, the letter will be provided to the Media and the letter is hereby made a part of this record. Mr. Remias also provided a copy of a letter dated June 5, 2015,from Dannette R. Smith, -Director, Department of Human Services, regarding "Executive Summary Response to Case #15- 034 (Pendleton Child Services Center and Comprehensive Services Act)", also to be made a part of this record. The Comprehensive Services Act Program was housed in the same building as Pendleton and, basically, intertwined. In summary, the founded major issues regarding the Pendleton Child Services Center are as follows: • Violations of the Virginia Public Procurement Act and City procurement policies • Violations of State and Local Government Conflict of Interest Act • Allegations of abuse not properly and/or timely reported to proper officials • Falsification of official documents and medical administration records • Charging of unauthorized fees • Missing charitable donations amounting to less than $21,000 • Cash on hand where sources could not be readily determined • Nepotism hiring practices • Use of an uncertified or unlicensed teacher • Case management conducted by unqualified employees and non-employees • CAS funding was being mismanaged by the Administrator and the CSA Coordinator • PCSC Management Board was dissolved by the Administrator without the proper City Council notification of approval • Two employees did not pass the background check yet still hired • Payment to unauthorized "contracted"workers" Mr. Remias made over forty (40) recommendations to strengthen internal control and operating procedures and ensure compliance with all regulations. Ms. Smith has submitted an Executive Summary response to the Corrective Action Plan to be fully developed and implemented in the coming months. Mayor Sessoms thanked Mr. Remias for his hard work. June 9, 2015 �Gi ty of 'Vi r n a13, +��ch 4.17.!itt- -„,./It%,,,,',„tj oUR N0.10 ,..x( X iiivi tt'.et ti15 OFFICE OF THE CITY AUDITOR MUNICIPAL CENTER (757)-385-5870 BUILDING 1,ROOM 344 FAX(757)385-5875 2401 COURTHOUSE DRIVE TTY(757)385-4305 VIRGINIA BEACH,VA 23456-9012 "CONFIDENTIAL: NOT TO BE DISCLOSED OR DISTRIBUTED - EXEMPT FROM DISCLOSURE BY VIRGINIA CODE § 2.2-3705.3(7)." June 4, 2015 The Honorable William D. Sessoms Jr., Mayor Members of City Council Subject: Investigation 15-034 Department of Human Services — Pendleton Child Services Center Dear Mayor and Council Members: The following information relates to an investigation of the Department of Human Services' Pendleton Child Services Center (PCSC) as well as the CSA (Comprehensive Services Act) Program, a separate program, once housed at the Pendleton Child Services Center. Background Pendleton Child Services Center The PCSC, a former division of the Department of Human Services, was a short-term, multi-disciplinary, family-oriented community service program designed to assist children between the ages of 5 and 12 and their families. PCSC used a cognitive- behavioral approach to behavior modification, which provided support for families and direction for children when they feel lost and overwhelmed. Note: PCSC officially closed on March 13, 2015. Comprehensive Services Act Program The CSA for At-Risk Youth and Families is a law enacted in 1993 that establishes a single state pool of funds to purchase services for at-risk youth and their families. The state funds, combined with local community funds, are managed by local interagency teams who plan and oversee services to youth. This program was designed to ensure that youth and their families receive the services they need. .City Council Re: Investigation 15-034 Department of Human Services — Pendleton Child Services Center June 4, 2015 Page 2 of 6 A full report was provided to the City Manager, Deputy City Manager, and the Director of Human Services detailing all issues noted during our investigation. Below is a summary of the more significant issues that were identified. PCSC related Issues • Violations of the Virginia Public Procurement Act (Va. Code § 2.2-4300 et seq.) and City procurement policies - Procurement policies ignored and circumvented. Thus, the Procurement Office and/or City Attorney's Office did not sign at least 31 contracts. This resulted in many payments to vendors without contracts. • Violations of State and Local Government Conflict of Interest Act (Virginia Code § 2.2-3100 et seq.) - Companies directly owned by PCSC employees were awarded city contracts to provide services for PCSC. • Allegations of abuse not properly and/or timely reported to proper officials - We noted only 2 of 88 accident/incident reports were reported to the Continuous Quality Improvement (CQI) Division of the Department of Human Services. • Falsification of official documents and medical administration records • Charging of Unauthorized Fees - We noted where clients were charged fees that were not approved by the courts and/or Human Services management to include supervised visitation fees, therapeutic assessment fees, and parental capacity fees. • Missing charitable donations amounting to less than $21,000 • Cash on hand where sources could not be readily determined • Nepotism hiring practices - The nephew of the PCSC Administrator was hired as a teacher at the center and was also contracted by CSA to perform Utilization Review. - The CSA Coordinator's son, daughter, brother, and nephew at one time were all employed by PCSC. • Use of an uncertified and unlicensed teacher (administrator's nephew) • Case management conducted by unqualified employees and non-employees • CSA funding was being mismanaged by the Administrator and the CSA Coordinator - The CSA funds were being redirected so that PCSC was receiving funding to keep the facility operating. • PCSC Management Board was dissolved by the Administrator without the proper City Council notification or approval "CONFIDENTIAL: NOT TO BE DISCLOSED OR DISTRIBUTED-EXEMPT FROM DISCLOSURE BY VIRGINIA CODE§2.2-3705.3(7)." •City Council Re: Investigation 15-034 Department of Human Services — Pendleton Child Services Center June 4, 2015 Page 3 of 6 • Two employees did not pass the background check yet were still hired - One of the notes from the FBI background check stated, "The applicant DOES NOT MEET the criteria to have responsibility for safety and well- being of children pursuant to Section 63.2-1726 of the Code of Virginia." • Payments to unauthorized "contracted" workers CSA related Issues The management of CSA funding and personnel was assigned to the Administrator at Pendleton. This was a conflict because PCSC was a recipient of CSA funding for the City. The PCSC budget for FY 14 included over $847,000 and FY 15 $909,000 that represented 55% and 73% of the revenues generated. Therefore, it created an atmosphere of ownership from the Administrator who was also functioning as the CSA Administrator and the CSA Coordinator who answered to the Administrator. Utilization Reviews Improperly Administered In order for clients to receive services a Utilization Review was required to be performed. From our review of this area, we noted: • Utilization reviews not performed in accordance to state guidelines, • Utilization reviews performed by unqualified employees, including the nephew (who was also a full-time teacher at PCSC), and administrative assistant, • Billings for utilization reviews were not supported by the necessary related documentation (less than $33,000). Note: Payments were made to a company that did not have a valid business license. Incorrect Payments to Vendor • 215 of 505 (43%) invoices totaling $250K for mileage reimbursement were not supported with any mileage records • 42 of 505 (8%) invoices had some type of error resulting in overpayments of $8,170 and underpayments of$420 (Net overpayment of$7,750) CPMT not functioning as intended Although the Community Policy and Management Team (CPMT) was operating, the CSA Administrator and Coordinator often governed them as to what was deemed necessary for the allocating and approval of funding. "CONFIDENTIAL: NOT TO BE DISCLOSED OR DISTRIBUTED-EXEMPT FROM DISCLOSURE BY VIRGINIA CODE§2.2-3705.3(7)." City Council Re: Investigation 15-034 Department of Human Services — Pendleton Child Services Center June 4, 2015 Page 4 of 6 Office of the City Auditor not notified of State Audit In accordance with City Code Sec. 2-475, "Notification of audits and audit-related issues", management shall ensure that the Office of the City Auditor is notified of any upcoming reviews/audits and of any issues pertaining to violations of federal, state, or local laws and regulations involving city funds, grants, or resources. The State Office of Comprehensive Services conducted a program audit of the Virginia Beach Comprehensive Service Act for At Risk Youth and Families Program. The audit covered the period of April 1, 2012 through March 31, 2013. The Office of the City Auditor (OCA) was not contacted and therefore was not able to provide assistance in answering the findings of the audit. The audit stated that conditions were identified that could adversely impact the effectiveness and efficient use of resources. Actions taken to Date As a result of the investigation into the above issues, the following Department of Human Services' employees have resigned: ■ Administrator, Pendleton Child Services Center, ■ Teacher II, Pendleton Child Services Center, ■ Behavior Specialist II, Pendleton Child Services Center, ■ CSA Coordinator, Comprehensive Services Act. Management made a decision to end the services provided by the PCSC program and the PCSC was officially closed on March 13, 2015. Upon the closure of the PCSC program: ■ Twelve employees were transferred to other city positions. ■ Five employees (including one who was originally transferred) resigned to seek opportunities outside of the city. ■ The CSA program housed at the PCSC was moved to the Human Services Administration building. ■ PCSC is currently vacant awaiting repurposing. Issues referred to Police Department for further Investigation: ■ Potential fraudulent billings and payments utilizing CSA funds, ■ Missing charitable donations, ■ Potential violations of Conflict of Interest Act (pending). "CONFIDENTIAL: NOT TO BE DISCLOSED OR DISTRIBUTED-EXEMPT FROM DISCLOSURE BY VIRGINIA CODE§2.2-3705.3(7)." • -City Council Re: Investigation 15-034 Department of Human Services — Pendleton Child Services Center June 4, 2015 Page 5 of 6 Issues referred to City Attorney's office for further review: • Violations of the Virginia Public Procurement Act (Va. Code § 2.2-4300 et seq.) and City procurement policies, • Violations of State and Local Government Conflict of Interest Act (Virginia Code § 2.2-3100 et seq.). State/City agencies notified of issues: • Department of Behavioral Health and Development Services, • Office of Comprehensive Services, • Department of Education, • City of Chesapeake, Department of Social Services, • City of Virginia Beach Public Schools, • City of Chesapeake Public Schools, • Virginia Beach Juvenile & Domestic Relations District Court. Recommendations Office of the City Auditor made over 40 recommendations to strengthen internal control and operating procedures and ensure compliance with city, state and federal regulations. These recommendations were detailed in our full report provided to the Director of Human Services and included taking disciplinary action for all employees involved with the above issues to developing and enhancing operational controls. Corrective Action Plan created by Director of Human Services Dannette R. Smith, Director of Human Services, is developing a detailed comprehensive action plan to promptly address most of the issues that have been discovered to date. Ms. Smith and her staff have been very pro-active, cooperative, and transparent in working with my office to determine the extent of the issues uncovered. I am confident that under her leadership many of the weaknesses in operating procedures that led to these issues will be rectified. It should also be noted that Ms. Smith brought the initial allegation, which led to our investigation and discovery of these issues, to us. "CONFIDENTIAL: NOT TO BE DISCLOSED OR DISTRIBUTED-EXEMPT FROM DISCLOSURE BY VIRGINIA CODE§2.2-3705.3(7)." . - City Council Re: Investigation 15-034 Department of Human Services — Pendleton Child Services Center June 4, 2015 Page 6of6 If you have any questions relating to this matter or would like to discuss further please do not hesitate to contact me at 385-5872 or via e-mail at Lremias@vbgov.com. Sincerely, Lyndon S. Remias, CPA, CIA City Auditor c: Audit Committee Members James K. Spore, City Manager Cindy A. Curtis, Deputy City Manager, City Manager's Office Dannette R. Smith, Director, Department of Human Services Mark D. Stiles, City Attorney "CONFIDENTIAL: NOT TO BE DISCLOSED OR DISTRIBUTED-EXEMPT FROM DISCLOSURE BY VIRGINIA CODE§2.2-3705.3(7)." A c r City of Virgir EL ] teach. R-� MA , VBgg9v cQm OFFICE OF THE CITY MANAGER MUNICIPAL CENTER (757)385-4242 BUILDING 1,ROOM 234 FAX(7571 427-5626 2401 COURTHOUSE DRIVE VIRGINIA BEACH,VA 23456-9001 June 5,2015 The Honorable Mayor and Members of City Council Subject: Executive Summary Response to Case#15-034 (Pendleton Child Services Center and Comprehensive Services Act) Dear Mayor and Council Members: Attached please find Department of Human Services' (HSD) executive summary response of the corrective action plan to be fully developed and implemented by HSD in the coming months to address the Office of the City Auditor's report for Case #15-034 (Pendleton Child Services Center and Comprehensive Services Act). Please contact Dannette Smith at 385-3673, or myself at 385-4242, should you have any questions. Sincerely, 4F Cindy A. Curtis Deputy City Manager CAC/amh t 44 ..t3 Of HT1 iriij c1 13. 0 5') hyo * ,U.' �z, est, "CV abk;,:X4e14:ks °F oUR NO° VBgov Com12 DEPARTMENT OF HUMAN SERVICES CENTRAL ADMINISTRATION PHONE: (757)385-3608. &btu 342 FAX:(757)385-3466 3432 VIRGINIA BEACH BOULEVARD TDD:711 VIRGINIA BEACH,VA 23452-4420 June 5,2015 Lyndon S.Remias,City Auditor Office of the City Auditor 2401 Courthouse Drive Building 1,Room 344 Virginia Beach,VA 23456 Subject:Executive Summary Response to Case#15-034 (Pendleton Child Services Center and Comprehensive Services Act) The City of Virginia Beach Human Services Department(HSD)cares deeply about the children and families we serve. It is paramount to the department to keep the citizens of our community safe by providing state of the art programs with an emphasis on good customer service. We were troubled by the events that prompted an investigation of the Pendleton Child Services Center(PCSC)and Comprehensive Services Act(CSA). The department took these events and the investigation . very seriously and worked in collaboration with the Office of the City Auditor(OCA) to address all concerns. Although the department addressed many improvement opportunities over the last year, this investigation became an additional catalyst to help transform the entire organization by strengthening its infrastructure and developing sustainable processes for the future. As soon as the investigation began, HSD immediately began addressing the concerns and implemented new processes department wide. The OCA report for PCSC included thirty (30) recommendations, ten (10) of which have been completed and an additional nineteen(19) are in progress. The removal of HSD supplies in PCSC is currently on hold. The OCA report for CSA included eleven (11) recommendations, four (4) of which have been completed and the remaining seven(7)are in progress. This is an executive summary response of the corrective action plan that will be fully developed and implemented by HSD in the coming months to address the OCA report for Case#15-034 (Pendleton Child Services Center and Comprehensive Services Act). It is our goal to continue to collaborate with other city departments around our corrective action, and to continue to be fully transparent with our work moving forward. PENDLETON CHILD SERVICES CENTER(PCSC) OCA recently completed an investigation of the PCSC regarding several allegations that included:potential risk to children;conflicts of interest;misuse of funding;non-reporting of incidents;hiring of contracted employees without background checks;no accountability of donations;unauthorized charges for services ordered by the courts for service visitations and parental capacities;hiring of non-licensed employees;nepotism;improper procurement;and a non- functioning Management Board. 1 Case#15-034 June 5,2015 SUMMARY: In 2013,City Manager Jim Spore presented the HSD director's office with the following goals: Provide seamless services; Develop sustainable business strategies;and Develop and build expertise within the department. In order to achieve these goals,the director's office has been actively working on transforming the department to ensure evidence based practice models are in place and implemented by a trained and robust workforce. On November 25,2014,an incident between two residents occurred at the Residential Program at PCSC. Program staff reported the incident to the PCSC Administrator. The incident was also reported to the Continuous Quality Improvement (CQI)Division within Human Services to provide the required information to the State. On December 1,2014,a PCSC staff person called Eddie Antoine,the HSD Human Resources(HSD HR)Director,to share information regarding concerns at the facility. Information shared included allegations of an unlicensed teacher at the facility,additional incidents that were not being reported as required,and examples of nepotism. CQI was notified of the concerns and an internal department investigation began. As CQI investigated the original incident on November 25,2014,along with additional concerns,the department determined the investigation should be transitioned to the OCA. This transition occurred on December 17,2014. FINDINGS: The Department is currently addressing the following areas of concern: Continuous Quality Assurance/Reporting Findings: It was alleged that incident reports were not being filled out or investigated properly. This allegation came as a result of an incident occurring at PCSC on November 25, 2014. Staff alleged the PCSC management staff would not allow them to report incidents outside of the facility. During the investigation of this allegation,HSD discovered an irregularity in a child's Medication Administration Record(MAR)where.the PCSC Administrator signed off on a medication error when she was not present at the facility. Immediately following the incident on November 25,2014,CQI began researching previous incidents at PCSC. On December 8,2014,CQI requested all PCSC incident reports from January 1,2013-December 8,2014. During the investigation,CQI determined there were several incidents never reported to them or to the State,as required. On January 7*and January 8th of 2015,CQI provided incident report training to all PCSC staff to address incident reporting requirements. CQI continues to provide incident report training for all HSD staff throughout the department on a regular basis,or as needed. There is a policy in place across the department to ensure quick reporting of incidents to the CQI Division who then determines additional reporting requirements and tracks incidents for internal outcome measures. On December 4,2014,CQI discovered the PCSC Administrator signed the Medication Administration Record(MAR) when she was not at the facility. Staff received training on medication administration and how to document and report medication errors in August 2014. The Department viewed this as an opportunity to retrain the staff required to pass medications and additional refresher trainings will be provided if concerns arise. HSD is in the process of implementing these elements department wide. Financial and Procurement Findings: During the investigation, there were several concerns raised regarding the overall mismanagement offunds and inadequate procurement procedures. OCA discovered that CSA funding was being mismanaged by the PCSC Administrator and the CSA Coordinator. The CSA funds were being redirected so PCSC was receiving funding to keep the facility in operation. OCA also discovered unaccounted for funds in the office of the PCSC Administrator in numerous envelopes. Also, when reviewing the contracts for PCSC and CSA, numerous contracts were discovered to be invalid and/or not in place. 2 Case#15-034 Jame 5,2015 CSA program and staff had been linked to the PCSC building for over twenty years. It seems this occurred because the PCSC Administrator was acting as the CSA Administrator,but it is not clear how this decision to have dual roles was originally made. During this investigation,the HSD and OCA recognized the dual roles/location of the program created a conflict with the distribution of CSA funds and perception of the program. The HSD Director moved the CSA staff and files to the Social Services building on January 16,2015 to differentiate programs/services. HSD executive leadership staff met on January 30,2015 to develop an action plan to address the current CSA irregularities and to create new job descriptions for the CSA Administrator and CSA Coordinator,which were approved by City Human Resources. The position of CSA Administrator was posted on April 28,2015. During the months of April and May of 2015,the HSD Director,the Deputy Director of Social Services,and the HSD Finance Administrator met with State CSA staff and other municipalities to ensure the appropriate administration and integrity of the Virginia Beach CSA program. During the investigation,OCA found unaccounted funds in the desk of.the PCSC Administrator. The funds will be placed into a HSD account as general funds. In collaboration with other city departments,HSD is currently taking steps to identify all charitable contributions to improve processes to properly record and deposit all funds. All HSD contracts were collected to gain a better understanding of the current contracts,their parameters,and how they were developed. Many vendors were functioning without contracts or with inadequate contracts or contracts without performance measures and most were not created with assistance from the Purchasing Department and the City Attorney's Office. HSD met with the Purchasing Department to review and develop a cross walk of contract requirements for all programs. Internal discussions continue and an Interim Contract Manager is in place to help organize the CSA contracts until a HSD Contract Administrator is recruited. HSD,the Purchasing Department,the City Attorney's Office,and OCA continue to work closely to develop new contracts,new contract timelines,and develop internal procedures for the contracting process. Human Resources and Personnel Findings: During the investigation, OCA discovered several conflicts of interest at PCSC which were in direct conflict with the Virginia State and Local Government Conflict oflnterests Act, (VA Code section 2.2-3100 et sea). OCA also discovered PCSC was hiring contracted employees by selecting people they felt were adequate to provide the necessary services, but did not go through the City hiring process. This included the hiring of an unlicensed teacher at PCSC and the hiring of several relatives at PCSC who were unqualified for the work in which they were hired. Prior to the investigation,HSD had been partnering with OCA to raise supervisor's knowledge and understanding of potential conflicts of interest. On October 27,2014,OCA's Sharon Hayes presented Ethics and Integrity at the HSD supervisor retreat and Dr.Donald Kirtland,Deputy Director of CQI presented the proposed HSD policy on fraud,waste and abuse. Conflict of interest training will continue to be discussed with all HSD supervisors at an August 2015 all supervisor retreat. During the investigation,OCA discovered concerns with how the PCSC Administrator was hiring staff. OCA found over 200"pink files"at PCSC that were determined to be previous staff or staff currently working in programs other than the Residential Program and the Day School Program. It was determined the staff identified by pink files were not hired through the City process for full time,part time,or contract employment. They were employees hired by the PCSC Administrator to work in the Living in Harmony program and the Supervised Visitation program. "Pink file"staff still working at the facility were relieved of their services and the Living in Harmony program was transferred to private providers on February 5,2015. The Supervised Visitation program transitioned to the Social Services building at 3432 Virginia Beach Blvd on February 13,2015,and currently serves Virginia Beach foster children and their families. It was also discovered that a PCSC employee was receiving CSA funds as the owner of a private transportation company. The payments for this private transportation company dated back to August 24,2001 with this person hired as a full time City employee for PCSC on November 16,2007. The HSD Deputy Director of Social Services and Finance Administrator immediately began developing a plan to replace the current transportation company. On January 8,2015,they developed a letter to terminate the contract with the transportation company. On January 9,2015,a termination letter for the 3 Case#15-034 June 5,2015 transportation company,a contract for a new transportation company,and a script for staff to communicate the changes to foster parents,was sent to the City Attorney's Office for review and approval. On January 13,2015,the foster care staff called every foster parent affected by the new transportation contract to notify them of the changes,which were followed up with a letter to reaffirm the changes_ Hampton Roads Transportation(HRT)began providing transportation services under the new contract on January 20,2015. It was also discovered during this investigation that the PCSC Day School employed an unlicensed teacher. During the conversations between the teacher,HSD Human Resources staff,and OCA,it was also discovered that this employee was the PCSC Administrator's nephew and he provided consulting work to PCSC prior to his employment as a teacher. There were payments for this consulting work dating back to 2005. He also did not possess a license to provide vendor services to the City. This teacher resigned from PCSC effective January 9,2015. Additional conflicting relationships in the department were also uncovered. There were two cases of Child Welfare staff married to private business owners with companies that accepted CSA funds for foster children. Both conflicts were disclosed to OCA and the City Attorney's Office and the supervisors received either a counseling memo or disciplinary action to addressand eliminate the conflict;One was resolved March 27,2015 the other April 27,2015. Once the PCSC program discontinuations and transitions were concluded four(4)staff resigned,twelve(12)staff transferred to other HSD programs,and four(4)staff chose to either retire or take positions outside the City. One(1) PCSC staff person chose to leave the City after she was transitioned to another position in HSD. Services and Program Operations Findings: The PCSC was originally designed to be a 24/7 facility for residential services. Over a period of time,PCSC was designated as a supervised visitation center and a location for families to receive assessments/testing to assist with custody and court services. Prior to the on-site assessment of the Residential and Day Program,additional services from the PCSC building were identified. In October 2007,supervised visitations were occurring from PCSC through a program called"Transitions". As of January 13,2015,there were around 75 clients per month receiving services and many of them were referred from the Social Services Division. In November 2014,the previous HSD Finance Administrator told the PCSC Administrator she could no longer charge for supervised visitation services. Payments continued to be collected by the PCSC Administrator under a different title. On February 6,2015,admissions to the program were placed on hold in order to research the service and determine next steps.After considerable coordination between the City Attorney's Office and the Deputy Director of Social Services,the service was discontinued at PCSC and transferred to the.Social Services building for clients of Child Welfare on March 16,2015. Families involved with Child Welfare services in.Virginia Beach,who receive supervised visitation services at 3432 Virginia Beach Blvd,do not incur any charges from these services. In addition,PCSC was providing Parental Capacity Evaluations(PCE's)to private families and families involved in Social Services. These services began at PCSC in August of 2004. During this investigation,it was noted that charges varied per PCE and costs were determined by the PCSC Administrator. All PCE's were put on hold February 13,2015 to determine next steps. The service resumed on May 11,2015 and was relocated to the Social Services building without fees to families. During the investigation,OCA discovered a PCSC Management Board was created in the 1980's to assist the facility with policy making,coordination and direction of the program. Over time,the PCSC Administrator shifted the purpose of the Board to function as a Steering Committee involved with policy development and review. With the discontinuation of all services at PCSC,HSD will request the dissolution of the Board to City Council. 4 Case#15-034 June 5,2015 COMPREHENSIVE SERVICES ACT(CSA) OCA recently completed an investigation of the PCSC regarding several allegations that included the misuse and mismanagement of CSA funding. This allegation was brought to the attention of OCA as the result of investigating the mismanagement at PCSC. Due to the fact that PCSC was running CSA,the concern was that the same mismanagement at PCSC would be found in the management of CSA. FINDINGS: The Department is currently addressing the following areas of concern: Management of Comprehensive Services Act(CSA)Program Structure Findings: During the investigation, it was determined a City of Virginia Beach CSA Policy and Procedure manual existed but had not been approved by management or gone through the proper approval process. Along with this, the Community Policy and Management Team (CPMT)is supposed to provide oversight and management, including policy development,to CSA but was not functioning in this capacity. This is a City Council appointed and approved team. OCA also discovered an issue with CSA funding with the PCSC Administrator responsible for funding approvals and decisions. This was a conflict because PCSC was a recipient of CSA funding for the City. This created an atmosphere of ownership from the PCSC Administrator who was also functioning as the CSA Administrator and the CSA Coordinator was reporting to the Administrator. Along with this, to be qualified for supplemental CSA funding,each locality must participate in a utilization management/review model. The CSA Coordinator chose a model allowing Virginia Beach to be responsible for the Utilization Review(UR)function, but had inexperienced and unqualified staff performing the reviews. The CSA program and staff had been linked to the PCSC building for over twenty years. It seems this occurred because the PCSC Administrator was acting as the CSA Administrator,but it is not clear how this decision to have dual roles was originally made. During this investigation,the HSD and OCA recognized the dual roles/location of the program created a conflict with the distribution of CSA funds and perception of the program. The HSD Director moved the CSA staff and files to the Social Services building to differentiate programs/services on January 16,2015. HSD executive leadership staff met on January 30,2015. to develop an action plan to address the current CSA irregularities and to create new job descriptions for the CSA Administrator and CSA Coordinator,which were approved by City Human Resources. The position of CSA Administrator was posted on April 28,2015. During the months of April and May 2015,the HSD Director,the Deputy Director of Social Services,and the HSD Finance Administrator also met with State CSA staff and other municipalities to ensure the appropriate administration and integrity of the Virginia Beach CSA program moving forward. After meeting with knowledgeable CSA participants from around the State,Virginia Beach HSD discovered the CSA program was not functioning in the manner the State CSA guidelines intended. This included the Community Policy Management Team(CPMT),the Family Assessment and Partnership Team(FAPT),the Mid-Management Review Team (IvMRT),and the Utilization Review(UR)process. The HSD Director,the Deputy Director of Social Services,and the HSD Finance Administrator developed a CSA manual to help redirect the vision for all Virginia Beach CSA programs,to bring them in alignment with the State vision. This manual includes overall information on the purpose of CSA,a structure for CSA in Virginia Beach,proposed instruction for procurement and contracting,and policies and procedures. This manual was presented to the Deputy City Manager,OCA,the City Attorney's office,and the Procurement Department for review and was followed by a meeting on June 3,2015 to discuss next steps. Once a CSA Administrator is recruited and hired,the CSA strategic plan will be redesigned and new policies and procedures will be implemented. Financial and Procurement Findings: In reviewing all CSA contracts, OCA found numerous invalid contracts which did not follow the designed procedures under Virginia Public Procurement Act(VA. Code 2.2-4300 et. Seq). This was due to the PCSC Administrator signing as an agent for the City. 5 Case#15-034 June 5,2015 All HSD contracts were collected to gain a better understanding of the current contracts,their parameters,and how they were developed. Many vendors were functioning without contracts,inadequate contracts,contracts without performance measures,and most were not created with assistance from the Purchasing Department. HSD met with the Purchasing Department to review and develop a cross walk of contract requirements for all programs. The HSD Finance Administrator developed a spreadsheet to help the department and Risk Management track all HSD contracts. This included the creation of a routing sheet to track the review and approval of contracts from the department The HSD Director,the Deputy Director of Social Services,and the HSD Finance Administrator developed a CSA manual to help redirect the vision for all Virginia Beach CSA programs and to bring them in alignment with the State vision. This manual also includes proposed instruction for procurement and contracting,along with an interim contracting process. Internal discussions continue and an Interim Contract Manager is in place to help organize the CSA contracts until a HSD Contract Administrator can be recruited and hired. HSD,the Purchasing Department,and the City Attorney's Office continue to work closely to develop new contracts,new contract timelines,and develop internal procedures for the contracting process. Program Structure and Organization Findings: During the investigation, OCA discovered several conflicts of interest at PCSC which were in direct conflict with the Virginia State and Local Government Conflict of Interests Act, (VA Code section 2.2-3100 et seq). In accordance with the CSA Manual, 3:1.4, Conflict of Interest, "Persons serving on the Team who are parent representatives or who represent private organizations or associations ofproviders for children's or family services shall abstain from decision making involving individual cases or agencies in which they have either a personal interest,as defined in 2.2-3101 of the State and Local Government Conflict of Interest Act, or a fiduciary interest". COV 2.2-5205. Also, the PCSC Administrator was serving as the CSA Administrator and was on the CPMT Board and the PCSC Management Board and often made decisions on behalf of the distribution of CSA funding. Prior to the investigation HSD was partnering with OCA to raise supervisor's knowledge and understanding of potential conflicts of interest. On October 27,2014, Sharon Hayes presented.Ethics;and Integrity at the All Supervisor Retreat and Dr.Don Kirtland presented the proposed HSD policy on fraud,waste and abuse. Conflict of interest training will continue for all HSD supervisors at the August.2015 retreat. During this investigation,HSD and OCA recognized the dual roles/location of the program,created a conflict with the distribution of CSA funds and perception:of the program. With the transition of the CSA programs to the Social Services building in January 2015,a clear demarcation of services and decision making was created. In the months of April and May 2015,the HSD Director,the Deputy Director of Social Services,and the HSD Finance Administrator met with State CSA staff and multiple other municipalities to ensure the appropriate administration and integrity of the Virginia Beach CSA program. In the coming months,HSD will work in coordination with OCA,the City Attorney's Office, and the Procurement Department to develop a new CSA program to ensure program integrity that is in alignment with State CSA guidelines. Continuous Quality Assurance/Reporting Findings: In accordance with City Code Sec. 2-475, "Notification of audits and audit related issues,"management shall ensure that the OCA is notified of any upcoming reviews/audits and of any issues pertaining to violations offederal, state, or local laws and regulations involving city funds,grants, or resources. On January 26,2015 the HSD CQI Division sent a memo to all supervisors to remind them of the requirement to notify OCA of any upcoming and/or completed Federal/State agency or audit/consulting firm audits. To centralize the reporting of all audits and the provision of final audit i eports to OCA,all HSD divisions were required to notify the department's CQI division. Notification is tracked through submission of the new CQI Office of The City Auditor Audits Notification form which must be completed and emailed to the CQI office within lbusiness day of notification by the auditing agency. Along with this,HSD has been actively addressing performance improvement opportunities department wide over the last year. After the completion of an internal review of the CSA program at HSD,the findings were presented on July 24,2014 6 Case#15-034 June 5,2015. to the CSA Coordinator: The review identified some of the same issues raised by OCA during their investigation,but the CSAIPCSC Administrator and CSA Coordinator were resistant to the feedback. During bi-weekly CSA meetings in October 2014.the reviews were discussed again with the HSD Director and the former HSD Finance Administrator both present. The group discussed potential concerns with the referral process,one-time only payments,funding emergencies, unclear outcomes for the Family Assessment and Partnership Team(FAPT)and the.Mid-Management Review Team (MMRT),and.recoupments. The team agreed that nextsteps for the months of November and December 2014 would include a review of proposed revised FAPT and MMRT forms and proposed policy and procedure changes. NEXT STEPS: HSD took these events and the investigation very seriously and worked in collaboration with OCA to address all concerns. Although thedepartment addressed many improvement opportunities aver the last year, this investigation became an additional catalyst to help transform the entire organization by strengthening the infrastructure and developing sustainable processes for the future. In the coming::months, HSD will address these findings with a detailed corrective action plan to ensure transparency and partnership throughout the City. The HSD Director and leadership team will continue to develop a strong infrastructure;ensure appropriate staffing levels and qualifications,emphasize accountability,and create outcomes to better predict program performance. The strong relationship between HSD and other city departments has provided abundant assistance and support with ensuring appropriate accountability at all levels. As HSD continues to address therecommendations from the OCA's findings,the infrastructure,processes,and staff accountability will continue to improve. If you should have any questions,you can reach me at 757-385-3613. / / Tha ,ou, Dannette R.Smith,Director Department of Human Services Cc:James Spore,City Manager Cindy A Curtis,Deputy City Manager 7 -3- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES 4:36 P.M. Mayor Sessoms welcomed Andrew Friedman, Director—Housing and Neighborhood Preservation. Mr. Friedman expressed his appreciation to City Council for their continued support. Mr. Friedman advised this information has been put together by experts within the City but wanted to have it all available in one document: 1:w i 4., VIRGINIA BEACH FAMILIES I I'amik and loath()ppmtunitit ',II atefic 1.,vue Team-Updated V9ay.2015 llepar(ment Leadc,r,hip Jleetinn C�7 } na TABLE OF CONTENTS o Definition of Family 3 o Demographics • Basic 4 • Economic 20 • Housing • Transportation and Commuting 32 • Education 33 • Health 45 • Crime 61 c Conclusion 69 c Notes Page June 9, 2015 -4- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Below is the definition of"family": WHAT WE MEAN BY FAMILY -- o In the context of this report households and families are used interchangeably to mean persons, related or otherwise,of various ages living together in one housing unit. All data is from the American Community Survey(ACS)unless otherwise noted.Please note that the ACS uses a small sample size,which occasionally results in anomalies and non-meaningful year-to-year variations within the data.This data should he used to discern trends over time.ora general picture.rather than to obtain an exact individual data points. l { i • BASIC DEMOGRAPHICS June 9, 2015 -5- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Household growth is steady but slow: HOW MANY FAMILIES/HOUSEHOLDS RESIDE IN VIRGINIA BEACH? Census Bureau American Communities Survey (estimate): o 448,479 People o 177,945 Total housing units • 13,719 vacant • 106,510 owner-occupied • 57,716 Renter-occupied households—142,051 people; o Real Estate Assessor's Report for 2014 • 140,860 non-multifamily housing units • 32,644 multi-family units • 173,504 total housing units 41) GROWTH IN HOUSEHOLDS-2005-2014 180000 —. 1,000 121 W0 u`_ 68 000 { 165 000.2 000 : iiitI Sourer.Virginia Beach Real Estate Assessor's Annual Report June 9, 2015 -6- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Over 57,000 Virginia Beach households are renters: OCCUPANCY IN VA. BEACH: OVER 57,000 VB HOUSEHOLDS ARE RENTERS Occupancy of Housing Units in VB 13719,8% Owner-occupied ■Renter-occupied ■Vacant ce�a�e ggl A,oe000mm�nmea 7 s�ry The number of renters in the City is increasing and staying in line with the National trend: PERCENTAGE OF RENTERS IS INCREASING 0.8 0.7 - 0.s 0.5 0.4 —Renters —Owners 0.3 02 Source: 0 1 Census 2006 2007 2008 2009 2010 2011 2012 June 9, 2015 -7- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) During the 1980's, the City was the fastest growing City in the Country, adding about 4,000 people per year: VIRGINIA BEACH POPULATION GROWTH—1950 TO The city was the 20010o fastest growing city in the 450000 f Country in the 1980's but more 40 000recently has been growing at less 350 000 -__.. than 1%per year. 't This is about 000,000 4,000 people and 250 qM� - about 1,700housing units per year. 5. 150 MO 100 000 50 000 S8 mmPmPP.P.�,0.8"0 € 8:00 6 o AVERAGE NUMBER OF The average number of PERSONS IN A HOUSEHOLD persons in a household has 3.0 remained 2. 2.0' '2;0 2:0 2 3 2.66 2.66 2.64 relatively �. _ _ stable at 2.6 2.5_. persons per house. 20 1.5- 05 i 2005 2006 2007 2008 2000 2010 2011 2012 Source Amerman Commuon,Survey June 9, 2015 -8- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Below is the household composition: From 2005 to HOUSEHOLD COMPOSITION 2012,Traditional "Married-Couple 100°.. i- _. Family Households" 2s.. +t. arz.aa declined slightly Boll•,. - — —_ as a percentage of all households. .I aao,. During the same time period,the proportion of aon•. - female-headed households and 1 '.. unrelated ae ax rzaos ,, households slightly increased. !. ooa I 2009 2006 2002 2008 2009 2010 2011 2012 UI,,'1,0,I Households ■Female Householder,No Husband Present,Family Household ■Male Ii•, holder,No 11,1,Present.Family Household '.. OMarried-Couple 4'omiIy Household Sou rco.American Communize Surveq AGE OF VIRGINIA BEACH RESIDENTS Residents between birth and age nineteen are declining as a 35 Ob t g percentage of the 4 City's population 311ob - --...-- -- while those age 65 and older are 25 o°o I 76: 1. -- the only r, population segment that grew consistently 15 0% I - -- from 2005 to 2012. o•. ,, , ti o.ow uw 19 2owaa wawa rs.�a ma«. .zlws .rzwc .rzaw zwn �vw9 .z9m zuu znlrz souse American Community Survey June 9, 2015 -9— CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) From 2005 to 2012 the number of households with children declined" HOUSEHOLDS WITH CHILDREN The number of households 500% with children declined from 2005 to 2012. 40 0% .as."% __._ This is to be 37.6% s7 a% ass% 360% expected due to a 7% 352% ¢ 339% the aging tpopulation. 20 0% f , 1 50 10 0% - rb 3. iiii r4 it 2005 2006 2007 2008 2009 2010 2011 2012 Source.American(community Survey Approximately '/ of the population live alone: The percent HOUSEHOLDS WITH HOIISEHO7•DER LINING ALONE of 300%— households comprised of a single 25.0%—.-... .. 1 } -- - person has 1 , C remained i j relatively 20 0% 33stable over 1 f # the time period at 160% � � t I 111 a 11 i � roughly 24 o or 39,700 100% I .- i households. 50% I .11 1. 111 i fl 1 i 1 1 2005 2006 2007 2008 2009 2010 2011 2012 source American Communlly Survey June 9, 2015 -10- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Below is the history regarding household race: The Asian RACE OF HOUSEHOLDS Population is the fastest growing as a proportion of the ECM cmicsicicitotal population while the white population is declining.However, in total numbers 60 0%- there are only about 26,000 residents of I I I I Asian descent. oa I NOTE:Other includes American Indian and ,. Alaska Native,Native 200, - Hawaiian and Other I Pacific Islander,Some Other Race,and Two or more races 2008 2009 2010 2011 2012 ■White ■©lack or African American ['Asian ■Ocher The City's Hispanic population continues to increase: HISPANIC POPULATION The City's Hispanic population is loo o•, __ growing in number '..... and as a proportion of the total population,but in ao,o,• _ __ __. _ total numbers there are about 32,000 '! residents of Hispanic descent. I i I 20.0.; _... 0.01•-_ _-.. -,- `_ -'-_ _' . a 2008 2009 2010 2011 2012 ■Hispanic ■Nol llispnnie or Latino June 9, 2015 -11- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Almost one (1) in eleven (11) residents was born outside of the United States: Almost one in PERCENT OF THE Putt11..1 (iN FOREIGN BORN eleven loo,. --- ---- .._...-- - --- residents of the �' 03% City were born * outside of the as United States tln•. s 2x 00. 0.0 - bUx ox R 0•. 2fM16 2006 200'1 2008 2009 21110 21111 2012 Soure:Amencnn(ommunity Survoc WHEItE PE)1111 i'EItE l'IVIN(. About9°c of the population lived in a ONE S'EAII different house daring the prior year. ovx 1-Ix Lox Lox I.Ix 1 0% 01% 118% Approximately 8"o of 190°0o% -..� � res idents lived outside o% um': 7.6,...:,,r,,, _7::,, _.„3,...„,5_,%,,, sx a.5 a sx of the City in the prior Etzi i��:•i, ,,i., n w�� u ,„11,,,,,'.8."._ x s." Year.For public gI' _'th" -^4mas '^'✓rr '--"'�*'— information purposes. this means that.every 70 0% , , three years re of the population are new s0 o°c I ' residents who may 50 Im6 have no knowledge of "' local laws and 0 0% , requirements. I �3_ t00% c 0 cmc- Y3a202006 2000 2007 200a 2000 2010 2011 2012 House ■Dbroad t House iv VA DiRercnt City in\'A D�aere.srar., CAI I Source American f`ommunity Survey June 9, 2015 -12- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) •it jiikw ECONOMIC DEMOGRAPHICS • Median household income has declined: MEDIAN HOUSEHOLD INCOME 570 000 $65.770 _. _. ... $64.212 $61614 _.. $05000 $6]333 561,462 561,626 $�Oop E58515 $59,29$ I I $55IMN1 L I I I I 550OM 1111111 $451X10 t 1111111 $10.000 2005 2006 200] 2MB 2009 2010 '2011 2012 Sou�c.�_American CommuOit�Survr� June 9, 2015 -13- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Below is the average of Citizens receiving SNAP Benefits. The increase is due to changes in policy and the Recession: From 2002 to 2013, AVERAGE MONTHLY SNAP RECIPIENTS the average annual ,0.000 _ growth rate in SNAP recipients was won 10.5%.This growth 350011 __-._ _ __. ____-..- --__.- ..___ r L... was driven in part by ,. ' i L the recession and by 3001.1 ___ __... ___. ____ i the Federal 2].156 ! Government's 25 000 - response by !. loosening eligibility. ' 20.000 _- _._ __ _ _ ,- 10 303 1 15 000 _.__...—__ , 000 - _- 1.- I —1T , 2011Y 200.9 20111 2005 2006 20f1'1 2(X18 2009 20111 2011 20L2 2010 fewoL4, 6ouree.Virginia Depanmeal o[B00 fiervireA CENSUS TRACTS WITH MEDIAN HOUSEHOLD INCOME BELOW$61,616 SHOWN IN YELLOW Mapped areas provide _ census tract r WI 411111 breakdown where the median household ,t. f income is 11‘,Ar Itr above or I* I All below the 'yr .41. ill citywide median I... household ' income level of$61,616. June 9, 2015 -14- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) 0HOUSING INFORMATION CII • 0 HOUSING BY TYPE We have almost 100,000 single family 2110 000 - housing units. However,since 2008, 130 OM we added 4,007 Iwam I I _' '.... I _'. _'.__ I apartments,3,420 Condos,and only 140 MO 1,743 single family 120 000 —I I ...I _.IIIII units. loo ow 60 0004 . __ - i ill 000 20 000 2008 2009 2010 21111 2012 2019 2014 l 2016 ASingl,Femil> INTownhouse Of'ondominium ■IT,plex/flome wish Aperlmenn+ DApertmenl Knits Source-Virginia Bead)Real Estate Assessor June 9, 2015 -15- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) 23% of the housing stock is over 40 years old. More importantly, only 10% of housing stock has been built in the past ten (10)years: AGE OF HOUSING STOCK (2010) 40% 35% _ - -- 43 7% — 30% i 25% 20.0% 20% 15% 12.4% 14.1% - 10% it 9.9% 5/0 1.8% 0-9 Years 10-19 20.29 30-39 40-49 50-59 60 Years Old Years Years Years Years Years or Olde Old Old Old Old Old Source:Real Estate Assessor's Office In 2040 over 60%of houses will be over fifty (50)years old: AGE OF HOUSING STOCK (2040)—IN 2040, 60% OF VB HOUSING WILL BE 50 YEARS OLD OR OLDER! As of 2040 30.0% ° 26/o 25.0% I 60 20.0% 16% 15.0% 0 11% 10.0% -7%0 7% 7%- 9-% 10% 50% ill-- -0.0% T- — , I-iii 0-9 10-19 20.29 30-39 40-49 50.59 60-69 70-79 80-89 90 Years Years Years Years Years Years Years Years Years Years Old Old Old Old Old Old Old Old Old or O1 Source:Real Estate Assessors Office June 9, 2015 -16- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) HALF OF VB RENTER HOUSEHOLDS PAY MORE THAN 30% OF THEIR INCOME FOR RENT Number of Renter Households by %of Income used for Housing 28,933 renter households ■under 30%of are paying income more than ■30-34%of income 30%of their income for •35+%of income rent For comparison,Norfolk has 44,212 occupied rental units,25,259 paying>30/0, or 57%of renter households. Source:American Community Survey Low income renters are paying more than 30%of income for rent and therefore are financially stressed: ALMOST ALL LOW INCOME RENTERS IN VIRGINIA BEACH PAY MORE THAN 30% OF THEIR INCOME FOR RENT Almost all very low income renter Household Number i'ercent. households Income are cost <$20,000 5,148 86.3% 9,543 94.2% burdened ,( o —Housing ffi34,999 fir. 8,429 Virginia $35,000- $49,999 7,816 67.6% 6,549 64.3% #9t►,ODiI 808 45.4%` ,4,619 33.8% , 1174.999 - $75,000 or 8,262 14.5% 398 3.7% more All Incomes 37,100 85.3% 29,538 54,9" June 9, 2015 -17- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) ALMOST ALL LOW INCOME RENTERS ARE PAYING TOO MUCH OF THEIR INCOME FOR RENT %of Renters Paying Over 30%of Income for Rent 100 00 80.004 80.IX1% 50.00'., '' -. -. --.___. 30 00% 20 00% 520.000 5211 WO$3d 999 535,1X81 549.999 $SU.000 5]4 999 $]5,000 amoe« Incomes of low 70..Man Rm.Income uw.6il wsms alb income renters 5000 declined compared to rental costs during the recession ,'' and have not 14500 lirip � recovered. { moo p� ,, Source:Housing\'irginin Sourcebook 13500 17000 8 8gg g 5g g Sg gR 8g gg 5g 5g 0 8 5 E 8 8 5 E o 8 8 b o I R R R R R R R R R R R R R R R R R R Yaar,Quarter June 9, 2015 -18- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Aikmw EDUCATION DEMOGRAPHICS 25%of the School's Third Graders do not read at grade level: THE MOST IMPORTANT PREDICTOR OF HIGH SCHOOL GRADUATION AND CAREER SUCCESS IS READING PROFICIENCY BY 3RD GRADE •• •i 68 of America's Children miss this goal i 80 of children from low income families miss this goal 6 25°0 of Virginia Beach 3'd graders read below grade level June 9, 2015 -19- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) The number of economically disadvantaged students in the City has declined since 2012: Percentages of ECONOMICALLY DISADVANTAGEDIE➢ .1 a dvantaged STUDENTS IN VIRGINIA BEACH AS OF students are based on the November THE FALL -GRADES K-12 report from Food servme3 Percentage 14004 • • 35.00%— 0 31100%• 2500% —_ f 20.004 15 00% ' III.Oo!-. 5. — i 00% .. 2003013 200809 200910 2010.12 2011-12 2012-13 • In 2013, 9.3%of children entering Kindergarten needed reading remediation: From 2002 to 2013, PERCENT OF CHILDREN ENTERING EINDERGARTEN the percent of NEEDING READING REMEDIATION children entering kindergarten needing reading ..s 250%—_ -__-. ------- remediation declined to below 10%.This means 2a0% 20 1% >-- --- that more children are entering school 150% - --- --._____ -- _.--- -- prepared to learn. 100•. _ --. _ _ _._—._ _._---- ',, '. 9.3% 2002 2003 20111 2005 2005 2003 2108 2009 2010 2011 2012 2013 Sour«.Annie E.C.cey Foundation ' • June 9, 2015 -20- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) In 2012, the Stated modified the Standard of Learning (SOL) Test to incorporate more rigorous assessments. Prior to the change in the tests, students were tracking in the 85 to 95%range consistently: The chart illustrates the SOL PASSAGE RATES FOR VIRGINIA BEA('H SOL English passage rates -ENGLISH READING for Virginia Beach Public ',.School students in the mo.o•.---- ----- -- ---- --- -- ------ third,seventh,and twelfth years. In FY 2012-13 the State modified the tests to incorporate more rigorous ---- --- -- — assessments including changes to the format with iiii. �r411111111,001\\ introduction of Technology `"°•°-— enhance items and content. As a result test scores across the slate dropped �.. 95.03, -__- __ __— making comparisons to historical test scores problematic. 95 ae Prior to the change in the tests, Virginia Beach students were tracking in the 85 to 95%percent range 2005-00 200.09 200908 2008002009-t0 2010-11 201 12 201219 consistently. Third Gredc. a Sevanth Grade -+-T,,tot(;rade Source:Virginia Department of Education The chart SOL PASSAGE RATES FOR VIRGINIA BEACH- illustrates the -SCIENCE SOL Science passage rates for 10..08. - --- Virginia Beach Public School students in the third,seventh, and twelfth years. Like with the 90 0%1 - English test,the State modified the tests in FY 2012- 13. 2005485 200809 2007.08 200809 200410 2010-11 2011 12 2012.13 Third Grade -F38.33001.883 -l-Twelfth Grade Spurn=Vkrglma 04partme01 of Education June 9, 2015 -21- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) The chart illustrates SOL PASSAGE RATES FOR VIRGINIA BEACH- the SOL Mathematics -MATHEMATICS passage rates for 100 0% ___-_ -_. Virginia Beach Public '.. School students in the _ . third,seventh,and twelfth years.The test 80 0% _ _ __ for mathematics was modified a year earlier than the tests for English and science , s..n+.. - -_ causing a the drop in test scores to occur in FY 2011-12. 50 0% ---- Interesting the once the test was in place, scores began to rebound the next year. 300%- __ -._.. __- --..... _ ._ _ -- This may be the case "j with the English and 2006-00 2000.09 2009-08 2008.09 2000-10 2010-11 2011.12 2012.10 SClence test scores as well. .Third Grade .e Seventh Grade 444..Twelfth<:rede Source.Virginia 05partmen,of Educenon As of 2012, nearly 7%of residents did not have a high school education: EDUCATIONAL ATTAINMENT OF VIRGINIA BEACH Education level has RESIDENTS ', long been determined to be the key to loo oma . s 1I, :iX economic success with 9000% - 'x _ 8 1 graduates from college .� earning a higher life 800% — :--s 1 a - time income than those a x who only have a high 70 0% : school education_ ? so 0% As the graph indicates, 50.0% I I • II nearly 7%of Virginia residents in a°.0% 2012 do not have a 30.0% e2%, 51 '4.2%1"I.8%1 5 18T:1.-,I.8% .,0_x':,t,•,rc high school education. This percentage has 20.0% - Ibeen declining over the to 0% time period,but that is 7.8%' 8,0% 7e91 T-8% 7,8114 j 8-e%' 6 i q still roughly 30,000 00% - - adults without a basic 2005 2006 2007 2008 2009 2010 2011 2012 ' high school decree. a NonzIlraduate •High School •Assocole's Degree Undergraduate Degree NOTE:ilsh Sehool includes those Graduate or Profese,onsl Degree who attain a GED. June 9, 2015 -22- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) CENSUS TRACTS WHERE 11 TO 24%OF THE POPULATION HAS AN EDUCATIONAL ATTAINMENT BELOW HIGH SCHOOL The map illustrates -,� areas of the City with concentrations 41* of adults who have less than a high k. .a school degree. S, f.: / Source:ESIti Communo Analyst The City continues to improve on the number of on-time graduation rate: ON-TIME GRADUATION RATE 100 0% 990. 88.0% 807% 808% 85.3% 86.6% 830x..-.Ni:B% -. __. r�^ 70 or. 2008 2009 2010 2011 2012 2013 Lec nia I1,ch Public.School System June 9, 2015 -23- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) The dropout rate continues to decrease: • DROPOUT RATE es% fi l% 5J% 5.5% A.U% 2.04 OLIN 2008 2004 2010 2011 2012 .13 .( Virginia Beach Public School System The City's dropout rate continues to track below the State average: • REPORT OF DROPOUTS FOR VIRGINIA BEACH CITY PUBLIC SCHOOLS Year 2001:08 2008-00. -2008-i0 '2010-11 2011-10 '. 2012-13 Number of 397 446 447 451 319 322 Virginia Beach Dropouts Virginia Beach 1.15% 1.32% 1.34% 1,37% .98% 1.00% Dropout Rate State of Virginia 1.89% 1.76% 1.49% 1.63% 1.37% 1.26% Dropout Rate Sources:Virginia Department of Education(N'DOE)Data and Reports available at https://plpe.doe.virginia.gov/reportcard/report.do?division=All&schoolName=All and the VDOE Educational Information Management.-2010-11 Final June 9, 2015 -24- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) 4110 HEALTH DEMOGRAPHICS g • Healthy People 2020 set a target of six (6) infant deaths or less per 1,000 live births and the City has met this goal two (2) of the past five (5)years: INFANT MORTALITY Healthy People SOUTH HAMPTON ROADS 2008-2012 2020 set a target ''. of 6.0 infant 16 deaths or less per 1000 live births. Virginia Beach Ix met this goal 2 of the past 5 years. I. 1.0 — _.._..___ % Infant mortality is a good ,, indicator of both _ 8 R.00 sea the health of the $ s sa b.. mother and the newborn and the _ 1 care they received. v t -5 2 G 2108 2009 2010 2011 2012 v5nnie Aeech �t'heseyeeke •Noelolk Portsmouth sa. Sourw:�'D}I,Di�icion o[Heelth 9tetis4ios June 9, 2015 -25- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) NUD-IBHR OF INFANT DEATHS BY LOCATION 2002-2013 tic.........11 40124 S • 4 • al Below is the Infant Mortality by Race in the City from 2003-2012: INFANT MORTALITY BY RACE Ethnic health VIRGINIA BEACH 2003-2012 disparity exists in Virginia Beach. While the IM rate for Caucasians met the "c Healthy People 2020 six of the ten years, A"' 26 ..-- _ __- _ the IM rate for the I African-American o population never met S 15 ---_...... __ — - that goal. n African American -a 10 twere likely a timesimes 9 more likely to 'i 5 , _-.—_ _. ___.- __...._ die in their first year W than Caucasian infants. ' - -2004._ 2003 2001 2INI5 2 ti 2007 20082010'2011 2012 tVB ill rale 6.75 Eal 7833 10 35 737 5 84 5.53 7.00 5 88 606 .M.V1,181'hilei5l 11 580 7.18 7.63 7.53 601 5.74 1.32 f 70 5 8 I.18 . _ _-1 _ ... . -. AVB Bleak IM retie 12.13 11.21 ]I 67 20.13 14.27 8.09 11 05 10.9J 12.61 132.9 a Sourer VUII.Uiricion of Ueelth Stenci,ee June 9, 2015 -26- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) LOW BIRTH WEIGHT(LBW)INFANTS LBW infants are at a SOUTH HAMPTON ROADS 2008-2012 increased risk of infant mortality and lifelong disabilities including _ - - developmental t �- l disabilities,hearing $ - -. and vision m o4 � �:•, impairments. e u4 Children who were f 6 9 9: 3}s Education programs ,'1 ,, i- than children born '... at a normal weight. I. 2008 2009 2010 .11 2012 •VirBinin Br ch •('hocepeake •Norfolk Portcmputh Soi lk i • 5 rre:\BH.IA- not Health Steticticc Below is the Low Birth Weight(LBW)Infants by Race in the City from 2003-2012: LOW BIRTH WEIGHT(LBW)INFANTS BY RACE IN Healthy People 2020 VIRGINIA BEACH 2003-2012 seta goal of having no ' more than 7.8%LBW infants per year. { z 1 0% This goal is met d' within the Caucasian "g 1204 -._-._ __- _.._-__._ ---- population however it t is not within the 0 19.9• African American y. population. 9 0 7 Env 0 Ir C . . % 2003 2004 5 2006 2007 2008 2008 2010 2011 2012 9-9,13 total 7.7% 8.7% 84% 8.4% 8.5 B0, 6 9% 7 9% 82%,8.54 9.93BWh98 68% 76% 7.5% 6.8% 7.2% 68% 5.6% fi 68%:6.50% *..VBBleck 11.1%119%11.9%12.8%12.4%112 1%113%1 .119,1157%. 0 Sourrr 61)H.Hivicinn of Health Statictia June 9, 2015 II -27- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Percent of Infants born by In Virginia Beach, Education Level of Mother-2012 more than 95%of infants are born to mothers with at least a high school diploma.This is the highest rate in Hampton Roads. z0%- 25%i 20% 15%- 10%- i1 034 A hem than HS Some College unknown High School Graduate College Graduate Source.SDH.D,.,4on of Health Statutie TEEN BIRTHS BY RACE VIRGINIA BEACH Children born to 2003-2012 mothers<18 years of age score 16% -_- ,,. significantly worse I on measures of ▪ 14% school readiness including math ▪ 12% -- --- --- -._ -_.--_- and reading tests. • 10% _.----- a Most females who • 8% -- �... ----- - have a child before the age ofl$do 3 6% -- " -- `----- not earn their high f. school diploma by - '. age 22. t 2% 0 2003 2004 2005 2006 2007 2008 2008 2010 2011 2012 ..-V13%Teen -i-VB%Whitt•Teen ..-VB%Black Teen tl Saurer.VDH.rhemon of Health Statistics June 9, 2015 11 -28- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Adult obesity in the City slightly increased in 2014; however, the City meets the Health People 2020 goal of less than 30.5%: ADULT OBESITY VIRGINIA BEACH 2010-2014 ', Virginia Beach meets the Healthy People 2020 goal of 60% 28% <30.5%of the 27% 7adults being obese. Iiill 25% V: 25% '.,. and strokes. 2010 2011 2012 2013 2014 o%of obese edults Source.t'ounty aeelth R1nkin1 20102014 OVERWEIGHT/OBESE ADULTS SOUTH HAMPTON ROADS 7111111 4ocl� e`�e o � � �7 ems° tit 4,0 •Adults age 18+who are Overweight or Obese seer wr�e�e nti.e zn u= '. June 9, 2015 -29- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) The City has the lowest percentage of overweight and obese youth in South Hampton Roads: OVERWEIGHT AND OBESE YOUTH SOUTH Healthy People 2020 set a goal of HAMPTON ROADS less than 14.5%of children being obese. 35% 30% 25% I , _ 20% 15% ' d° o 's* •Youth(age 14-19)who are obese% •Youth(age 14-19)who are overweight% Suurce:Virginia Atlas 2014 ' Approximately 50%of adults in the City do not meet the physical activity recommendation within the past thirty(30)days: PHYSICAL INACTIVITY IN ADULT Half of VB adults a SOUTH HAMPTON ROADS do NOT meet physical activity recommendations 60% 40% 52% 51% 52% 50% 50% 40% - -- - - 30% 10% = hit ce ) 4t v 0% tia �e �t ? .14 5a W5 5 .tea II Adults NOT meeting physical activity recommendations within the past 30 days 0 soure:rrgaf.atia, June 9, 2015 -30- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) YOUTH TOBACCO AND ALCOHOL USE SOUTH HAMPTON ROADS I 30% ' rt7i r 25% 1 ,-, ,- [.0e. ,. 4,,,, € m 15% i' a' w 10% � tie 1ti - oeo oOS .0a .lQ +o , cv‘ 4 G4eamir a Tobacco and youth(14-19 years) Alcohol and youth(14-19 years) Sourre:V�rginie Avles 2°IA' '', I 18% of adults surveyed smoke. Tobaccos use is THE single most preventable cause of death and disease in the Country: ADULT TOBACCO/SMOKING AND ALCOHOL SOUTH HAMPTON ROADS Tobacco use is THE single most preventable cause 25% of death and __ ... __ disin the 20% Uniteeased States , 15% i;' iA° 10% v 1;, 6,. v, fir, --.1:‘, •%of adults who smoke Adults age 18+at Risk for Binge Drinking so.re.rra.�a Aea.lou June 9, 2015 -31- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) The chart below provides the number of adults and children who are medically uninsured in South Hampton Roads: MEDICALLY UNINSURED IN SOUTH HAMPTON Uninsured ROADS adults are 4 times more 25%f __-- -—. likely to delay '.. or forego needed care, ... making them '.� more likely to be hospitalized for conditions 1, / that could have been avoided. SN ow V4g,nie Chenepevke Norfolk Partsmau,h 6oBolk Virg,nie Beech F Uninsured Adults Age 19 6 t .Uninsured Children Age 0 18 Sourm�Virginia Ales 2011 The chart below provides the number of children that have not seen a Dentist in the past year and the number of adults that have not seen a Dentist in the past two (2)years: DENTAL ACCESS SOUTH HAMPTON ROADS Nearly 1/3 of all adults have 25% untreated tooth decay. 11:3 2 Tooth decay is the leading 2 ' 6 chdiseasronie of c 51 3 '.:S 1 F: t 4 childhood. 04 A 1 ,A W t 1141^ f, .,` '' Virginia Chwapaeke Norfolk Portsmouth BuHolk Virpnie Peach Yooth(age 0-17)with no dental vied in the peat year% •Adolts(age I8+)with nodentel visit in lent 2 Tanen% Souroe:lirginie Atlea 1011 June 9, 2015 -32- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Oak CRIME • • The City's Crime Rate is the same as it was in 1964: Virginia Beach's Overall Crime Rate is the same as it was in 1964—49 years ago Crime Rate per 1,000 Population 1960 to 2014 70 0 600 500 400 30.0 - .. 500 100 00 June 9, 2015 I I -33- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) The City's overall crime rate is the lowest in the Country in comparison to other cities with populations of 350,000 to 900,000: Virginia Beach's Overall Crime Rate is the Lowest in the Country Virginia Beach Police Department Comparison of Crimes in U.S.Cities Virginia Beach ss.Other Cities with Populations of 350,000 to 900,000 Offenses Known to Police in sots Ranked by Crime Rate per 1,000 Residents,Lowest to Highest Muddied Violent property 1000 1000 1,000 Vinlant c,opc,ty Crimes Dank City State Popol.tion 0ca�dentz b,•sidenta 0eaidentz C,00', (0,00, Bepo,tcd 1 Virginia Beach VA 1.15431 994 28.5 1.7 26.8 7(3 11.717�17�.475� EFITHIIIMMI rEMIN1111=111111111111 _Op. t: NIIIIIMM1m11MEMEIMMEMIIIES®©tmMm O Colorado •i •8 m�� m ®�"'- t' 40.3 NM The City's Violent Crime Rate is less than 1/2 of any comparable city: OUR VIOLENT CRIME RATE IS LESS THAN HALF THAT OF ANY COMPARABLE CITY Violent Crime Rate per 1,000 Population \'regi"'" Mese El Pnau 8aleigh ('oloredo Mlingwn lung Pesch Tempe Ilanvcr ('herlone Beneh Springs '. June 9, 2015 II -34- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Juvenile arrests continue to decline in the City and Nationwide: JUVENILE ARRESTS Juvenile arrests are declining 5,000 nationwide and -- in Virginia 4,500 Beach. 4,000 --- 3,500x.• 2008 3,000 – ■2009 2,500 '{ •2010 f 2011 2,000 II 2012 1,500 ■2013 1,000 500 Source:Virginia Beach Pollee Depart mens Juvenile drug and alcohol arrest continues to decline in the City: Juvenile arrests for these JUVENILE DRUG AND ALCOHOL ARRESTS violations are declining by 900 -- - 37.4%over the 805 time period.As 800a percentage of all juvenile 700 — arrests,drug 597 and alcohol 600 ----- - -- -------- arrest continue to represent 500 471.-----4e5- -------______...--- roughly 16.5%. 400 — 382 —__—_- 301 300 elmhal crests include drug , cele end menu(evture,drug 200 eeena DUl,rioI:r ofliquor lewc ad public druakennecc. 100 0 2008 2009 2010 2011 2012 2013 ' Source:Virginia Beach Police Depart meet June 9, 2015 -35- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) Juvenile violent crime arrests continue to decline in the City: Violent crimes committed by JUVENILES ARRESTED FOR VIOLENT CRIMES juveniles have also declined over the time period by 1.000 _ over 50%. 900 800 700 000 444 r ,. a — .;- 500 ht-' 400 x. .„ — x,.�, 200 ;; � C -.lY'►. D r t' .th- I.eoq n l d h . pe 100 - r see ueepons.iolal+on. ` '- and sex olTenses. 2008 2009 2010 2011 2012 2013 Source.Virginia Oeach Police Department. The chart below provides information relating to arrests for domestic assaults: ARRESTS FOR DOMESTIC ASSAULTS 3.000 2.500 2,000 1—._. — —jj — - 1.500 1.000 500 73 64 2009 2010 2011 2012 2013 a Aggravated •Simple ',.... Source.Virginia Hench Police Depart mens June 9, 2015 -36- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) The number of economic crimes where the victim was over 65 years of age has seen a dramatic increase: NUMBER OF ECONOMIC CRIMES WHERE THE ''...... VICTIM WAS OVER 65 YEARS OF AGE 400 362 350 300 — 255 250 240 200 - 185 193 150 - 100 50 0 2009 2010 2011 2012 2013 Source:Virginia Bench Police Department Below are some conclusions from the information provided: SOME CONCLUSIONS o The average age of residents is increasing o The average age of housing is increasing and will continue to increase through 2040 o There are a significant number of households that are financially stressed due to housing costs o Virginia Beach is relatively better off on some but not all health indicators than its neighbors o There are significant racial differences in health ci Juvenile crime is decreasing 0 o Virginia Beach is an extremely safe city in terms of crime June 9, 2015 -37- CITY MANAGER'S BRIEFING STATE OF VIRGINIA BEACH FAMILIES (Continued) o Thank you for your time and attention. o Your suggestions to improve this presentation are solicited! Thank you to o Catheryn Whitesell and her staff for much of the demographic,economic and school data o Dr.Heidi Kulberg for health data o Capt.Pat Gallagher for crime data amok Mayor Sessoms thanked Mr. Friedman and each Department for providing this information and for their continued work in making the City the "Best City in the World". June 9, 2015 -38- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT 5:09 P.M. Mayor Sessoms welcomed Michael Tippen, P.E. —Public Works, Engineering. Mr. Tippen expressed his appreciation to City Council for their continued support: Illtr - ` 'rouundieCIIP 3ng /idesd end the C'� �, mprove-045 �' ven r 76 aty Coundi Briefing k * June 9, 2015 u �k. `t` PIlkS........2,,e6luelePt9 EACet.tKce. 5ezutK9 &Ala Pair., The picture below shows the area of the current undergrounding utilities and the Pacific Avenue Improvements Project from just South of 17th Street to North of 22nd Street: j , Arctic Ave °J _ 4J .) ` +, .(,) c y .0. „. k N , Pacific Ave ,,,, g rp L : i &ii 3 :.�► Atlar ticiAva 'A,0.� e w .....IW June 9, 2015 -39- CITY L, BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) Below is an outline of today's presentation: • Outline: • Purpose and Need • What We Did(Scope) • How We Did It(Construction) o- • I o�kfrg Ahead a * ;*, 1,,r ;. i,` &r �, ;-r,:., `s, w Ana k0 y�s {�., "fifAw, rww�* --.7-1114401:0•1,*,ec.o-... � j � a��,� moi � 3 . �� "° � m : elfin This project is to support revitalization of the Central Beach District as identified in the 2008 Resort Strategic Action Plan: . " Purpose and Need u ort revitalization of the Central Beach Distric .s `,` n + in the 2008 Resort Strategic Action plan. • This is the Initial phase of the revitali .tion of" Pa fic { • . / ' 4 June 9, 2015 -40- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) • What We Did • Maintained Existing Right-of-Way(6oft ROW) Ow. r‘• New Duct Bank to Relocate Orhead Utilities Undergrouy d • New Water and Sewer Lines ,,,,,.,,.....,,.: 411, • New Storm System and Structures • New as Lines - . :. bound an. .•.t.4 r< c I I - 2 , 5 The rendering below provides an overview of the project: street light median stri. or 1 roadway sidewalk ill t } s trafficli•ht+ +rlre h dram „ x• ' ` curb - destrian crossin• r r _ r• ,1 bus sto. + n rtc „ bus shelter+ .... 1 . It �Il Ifi °' bawler II ; 1` ,•„ I I +storm sewer I I — ek• • cable+ +water main k. tel•hone cable+ ,,.- •as main sewer main+ main sewer+ June 9, 2015 -41- CITY MCA PROJECT (Continued) . . ,,,,,,,,,,,,,,....,.,4,47-.':-;trik-•,,,,*i'.44.-; •:t...,,,,. ... -'-',t'i•.--..--.• *:„7‘..,:-„tilio.;:..4*.V.i.;!,-,7 .r • y ,�z 4ru . . ra n y � iV.:II': rX ......1....',-%., '•:-.. r tO Mrd ax: ° �c �. IIr 4 5 ` 8 June 9, 2015 -42- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) a ' \: , ,I. ,,,, , . .„tuvoi,•.:t:1,,,,,,r.rr/111111 !1'r Ie` � } i3 e ipromp.mrpommir, . .B ., ' 1 I eillr a- fe he 4 June 9, 2015 -43- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) t '.1 F _s.Ar iiilt ,....,„, 11' a 4. , Vii' r y-ii--„,,,,'$,,;.., '1„,..-f-fOrW„, ' ` e 94 0. .: :> .,,,,,,,:..3r.,-,..,',,,,,.ray+ .. • June 9, 2015 I 1 i 1 -44- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) WPC ,..,1 et, e a:Ar. CE rt, &j . , s* ?, .. sir ; r i IL �t� . - 1w l: 1 , .. ri '.3, -.,r 1P A, . X 1 q June 9, 2015 ii I 1 I -45- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) ...,„Idatsscrit*V'''' I r'ai Nil I .04 ....,.. ... ,,,, .. N it , , i r I ‘ f ., Yam }� y ‘' f \, • lilmippli1;111 +E+a ... _ it June 9, 2015 I I II -46- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) NEI NN _ ,_ r 1 ru 41. • • t (; k:+ IH June 9, 2015 1 1 -47- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) ...,„1 AI k Illt .11 . ,.,..„..... , _R.A 1.4....,..v. .11.1.7°Ir7-- TIE" Wis..._ , Lii •F; / {v = j June 9, 2015 -48- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) t .. ki Waw r " r 4 i • June 9, 2015 I I -49- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) yy ry4� ift c n ilk as N- - : - 0 , /� �/}' ''" ., / a June 9, 2015 -50- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) Ilk"' a N - 'a ,ei6 WO ' / :.bier/ grit 'Wilt June 9, 2015 -51- C 'S BRIEFING CITY MANAGER PACIFIC A VENUE IMPROVEMENTS PROJECT (Continued) C. • il _ I'lf• Ill IF N r ti i..5._ 10,00,100,pierionsaim." ti June 9, 2015 -52- CITYMANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) s 400. • June 9, 2015 -53- CITYMANAGER'S BRIEFING PACIFIC AVENUE T ROVEMENTS NUE I PROJEC (Continued) Below is the schedule for the next three(3)Seasons: ''uurur • L.0oking Ahead 30... Seasons • Season 1,ai: October 1,2014 to April 3o,2015 • Duct Bnk Cost-$8,000,000 I Mile($1,5oo foot) • Season 2October1,2015toApril30,2016i• • Seas n3October 1,2016 to April 30, .1 _r :dNrfr ;i.:. • L.0oking Ahead Season i • October 1,2015 to April 30,2o16 s� • Private UtilitiesVirpull cablePowand reestablish sr,service connecti s • Dominion giniaer ✓erizon '..1'11. .t' b ''.i. Af- � y,4H@1,lv. ' r'. .,.'";3 •�. Art f . �kx ``�$' �' F ST'''- f. ,v stai rid �* 2 'F y, June 9, 2015 -54- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) ,Y,° .A.tead 4� �. ;� , 1 � 0 2 " x Signal at 19th$treet;w M t m 1 21st and 22nd Street .t sit x w f M i li ti , ''''''''. /4/H."." 33. The rendering below is what the Road will look after completion: " Tf. S _,.•.,1":ftw' .,,,N,,„ r iJ June 9, 2015 -55- CITY MANAGER'S BRIEFING PACIFIC AVENUE IMPROVEMENTS PROJECT (Continued) Below is a listing of the "Team"working on this Project: m . Property Owners,Business Owners,Residents,Commute ity n eer's Office/ Transportation"' «n 35 471 441404, . 1 rounding Utilities and the venue Improvements Project • CIP 2-045 eA g k. AMMINEP 4e tM1a' � x .t.' . E 't B. CK If GVGt4 Pica,' Mayor Sessoms thanked Mr. Tippen and the entire Team for their continued work on this Project. June 9, 2015 -56- CITY MANAGER'S BRIEFING SOUTHEASTERN PUBLIC SERVICE AUTHORITY(SPSA) POST 2018 5:32 P.M. Mayor Sessoms welcomed Dave Hansen, Deputy City Manager. Mr. Hansen expressed his appreciation to City Council for their continued support: 0,..)ti. i Post 2018 SPSA Update June 9, 2015 Dave Hansen Deputy City Manager John C. Barnes,Jr. Waste Management Administrator City Appointed SPSA Board Member Today's Briefing will provide the Post 2018 SPSA Update: Post 2018 SPSA Update • SPSA Leadership • Background • Timeline • Draft Use and Support Agreement • Regional Landfill • SPSA's RFP for Disposal Vendors , June 9, 2015 -57- CITY MANAGER'S BRIEFING SOUTHEASTERN PUBLIC SERVICE AUTHORITY(SPSA) POST 2018 (Continued) Below is the listing of the SPSA Board of Directors: Southeastern Public Service Authority Board of Directors Ex-Officio Members Appointed by Appointed by Governor Individual Municipality City of Chesapeake Mr.Marley A.Woodall,Jr, City of Chesapeake Mr.Enc J.Martin,P.E. Chairman City of Franklin Mr.H.Taylor Williams, City of Franklin Mr.Everett C.Williams,Jr. IV,Esquire Isle of Wight County Mr.Roy W.Chesson Isle of Wight County Ms.Anne F.Seward Coy of Norfolk Mr.Donald Williams City of Norfolk Mr.Richard Broad City of Portsmouth Mr.C.W."Luke"McCoy City of Portsmouth Mr.George M.Wilson, Southampton County Mr.Mark H.Hodges,Vice- Esquire Chairman Southampton County Mr.Michael W.Johnson City of Suffolk Mr.David L.Arnold City of Suffolk Mr.Patrick Roberts City of Virginia Beach Mr.William A.Sorrentino,Jr. City of Virginia Beach Mr.John C.Barnes Executive Staff Rowland"Bucky"L.Taylor,Executive Director Liesl R.DeVary,Deputy Executive Director and Chief Financial Officer Below is the background regarding SPSA: Background • February 28,2012 Briefing to City Council on Disposal Alternatives • October 16,2012 Waste Management Update • March 26, 2013 Briefing on Resolution • April 4, 2013 VB Resolution passed to pursue continuation of SPSA in post 2018 SPSA era • December 31,2015 Ash and Residue Agreements expire • January 24, 2018 Existing Use and Support Agreement expires.All existing debt to be paid in full. June 9, 2015 -58- CITY MANAGER'S BRIEFING SOUTHEASTERN PUBLIC SERVICE AUTHORITY(SPSA) POST 2018 (Continued) Below is a timeline of the waste decision for post 2018: SOUTHEASTIRN PUBTIC SITIVICI AUTHORITY DYNAMIC TIME IINE: WASTE DISPOSAL DEC,ION 40R POST TI11H p sww�4 •M vi s tw ro :r"r %rrPo t t r, ✓ I t Idle* use larpdst u9.14 d anid Mike MS WM Mr• offeror The SPSA Board Members serving on the Use and Support Subcommittee are Mike Johnson — Chairman - Southampton County, Richard Broad Norfolk, Eric Martin — Chesapeake and John Barnes— Virginia Beach: Draft Use and Support Agreement • Developed by SPSA — Input provided by Use and Support Subcommittee • Submitted for member community review 3/25/2015 • Highlights: — 10 year term — Ability to exit contract with conditions — 100%MSW — Strategic Operating Plan • Guiding principles • Planning horizon of at least 50 years • Preference for PAYGO • VB comment letter dated June 1,2015 • Use and Support Subcommittee to reconcile comments June 9, 2015 -59- CITY MANAGER'S BRIEFING SOUTHEASTERN PUBLIC SERVICE AUTHORITY(SPSA) POST 2018 (Continued) Below are the highlights of the City's Comment Letter: Virginia Beach Comment Letter Highlights: • Planning Horizon must be at least 50 years • Regional Landfill disposal alternative is critical to long-term reliability and price control. • Critical Steps to be accomplished: —Continue to be a good neighbor — Resolve Host Fee — Resolve Cell VII CUP discrepancy —Secure permitting/CUP for long-term disposal — Improve access from US 58 The map below is of the SPSA Solid Waste Management Facilities Regional Landfill, located in the geographical center of Suffolk: 46 { June 9, 2015 -60- CITY MANAGER'S BRIEFING SOUTHEASTERN PUBLIC SERVICE AUTHORITY(SPSA) POST 2018 (Continued) Below is an aerial photo of the Regional Landfill, totaling 833 acres: • Regional Landfill • © 833 Total Acres Cells I—IV are filled and closed 1t��a+ e� 4M Cells V and VI are active • f� � � � ' - "' Cell VII is permitted but not 4.6 ;' constructed Cells VIII—XIII are planned but 4,,e. • " >> not permitted • 204 Acres—Cells 1-VII \ ION 266 Acres—CeIIs VIII—XIII _y (Currently Undeveloped) it 10 470 Acres Total ix Regional Landfill Zoned M-2 The chart below provides the information regarding the Build Capacity: Incoming Waste Cells 5/6 Cell 7 Cells 8,9,10 Cells 11,12,13 Volume 5.0 M CY 10.8M CY 32.1 MCY 21.2 MCY Ton/Year 4.2 M Tons 9.0 M Tons 26.8 M Tons 17.7 M Tons 200,000 2035 2080 2214 2303 300,000 2028 2058 2148 2207 400,000 2025 2047 2114 2159 500,000 2023 2041 2094 2130 600,000 2021 2036 2081 2111 700,000 2020 2033 2072 2097 Notes: 1.Landfill life estimates assume 0.835 tons/cy density. 2.Cells V&VI volume of 5.0 MCV estimated remaining volume as of 4/1/2015. Intor mat ion provided b,HOC Engineer-, 3.Cells VIII—X and Cells Xl—XIII assume 2tl below grade at 4:1 and at 5:1 final grades with a maximum elevation of 200'. 4.years shown Indicate a sequential filling of each Cell. W4914 1194099901 of In 11142.4009•114946110 Tons 2007 2000 1000 2010 2011 2012 7010 3014 2013 1,104,264 1,170.733 711,520 493,705 109,601 235,026 194,296 560.999 253,450 lc June 9, 2015 -61- CITY MANAGER'S BRIEFING SOUTHEASTERN PUBLIC SERVICE AUTHORITY(SPSA) POST 2018 (Continued) Below are the requirement highlights of Cell VII Conditional Use Permit: Cell VII Condition Use Permit Requirement Highlights: 1. Approval of a detailed site plan 2. Evergreen vegetative buffer 3. Shall not exceed 220 feet in height 4. All required environmental permits 5. Construct two transfer stations in Suffolk and reconfigure the intersection of RT58E and Bob Foeller Rd.to preclude left turn into SPSA's landfill.* 6. Monthly litter collection 7. Increase environmental pollution protection General Condition: The 2007 CUP may be revoked by City Council for failure to comply with any of the conditions. *The discussion which must take place by the current SPSA Board is to engage Suffolk in negotiations to determine exactly what conditions they still require. Below is information relating to SPSA Solicitation for Disposal Services. To date, three (3) responses were received: SPSA Solicitation for Disposal Services • SPSA issued an RFP in Oct 2014 • Three Respondents: — RePower South,LLC(Recycling) — Republic Services(Landfilling) — Wheelabrator Portsmouth(Waste to Energy) • Option Four —SPSA Regional Landfill(Gov't estimate) • Ongoing Process — Negotiate price(gate rate) — Determine system cost(member tipping rate) — Select overall best value option • Obtain City Council membership approvals 12 June 9, 2015 -62- CITY MANAGER'S BRIEFING SOUTHEASTERN PUBLIC SERVICE AUTHORITY(SPSA) POST 2018 (Continued) Below are upcoming key events: Upcoming Key Events • SPSA Board Meetings —June 24,2015 • Review Use and Support comments —July 22,2015 • Review RFP Best and Final —August 26,2015 • Review Final Use and Support Agreement • Review Disposal Recommendation • City Council Update —September 8,2015 • Present Final Draft Use and Support Agreement • Present Disposal Recommendation for the post 2018 SPSA era 13 Council Discussion Mayor Sessoms thanked Mr. Hansen and Mr. Barnes for their continued work on this Project. June 9, 2015 -63- ADJOURNMENT Mayor William D. Sessoms, Jr., DECLARED the City Council Meeting ADJOURNED at 5:58 P.M. IlItyLe/tetf -6A-7 Amanda Finley-Barnes, CMC Chief Deputy City Clerk _ _.....11111.r R th Hodges Fraser,MMC City Clerk June 9, 2015