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FEBRUARY 23, 2016 WORKSHOP MINUTES -1- 1N'"'..Elc O4ma� eze +L� tqf Ls Yo 6 OF OUR NwO� VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia February 23, 2016 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, February 23, 2016, 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., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Absent: None February 23, 2016 -2- CITY COUNCIL'S BRIEFINGS PRINCESS ANNE COURTHOUSE 4:00P.M. Mayor Sessoms welcomed Bernice Pope, Chair— Historic Preservation Commission. In 2012, the Commission appointed a Sub-Committee to determine the issues regarding the Princess Anne Courthouse, including the potential for Historic Designation, maintenance concerns and future use. Dr. Glenn Carwell—Chair of the Sub-Committee and provided information and recommendations: flistøric \Ill 1:41:,.,c, �� "QC's ,, , -.0 I- � Ii 1 �� ,�� i 01 i ¢ k ary t p3 Dr. Carwell advised the Historic Preservation Commission was established in 2008: , 'ill t 'r ' - n o low: t r ►� s .ed'2005 to . vise �coucil n preservation isu+ s, 2 February 23, 2016 -3- CITY COUNCIL'S BRIEFINGS PRINCESS ANNE COURTHOUSE (Continued) The Courthouse looks nice from a distance; however, when closely examined, the columns are deteriorating and, in fact, a demolition contract has been issued to remove the columns: ( i E. •$ F f Vena CA*rtholiti Adjacent Ciurfhouse Annex S 4 r • .,, zaP 4 February 23, 2016 -4- GS CITY COUNCIL'S BRIEFINS ANNE COURTHOUSE PRINCES (Continued) The Courthouse was built in 1819 by Order of the Virginia Legislature stating the Courthouse should be located in the geographical center of Princess Anne County: f 411. X L 1¢{ J;�, B1 4h8 k �� order © Vl , g _ll g$ '11,' -"tiore ,,,,,- horde came xtori0,1. A. The Commission has surveyed Citizens since 2010 and one of the concerns rated in the top five(S) is the Courthouse preservation: i o iPreservationCommission Surveys :Public meet g2010- 2014 Commu ty High concert► for courthouse reserve ion. Rated in top 5 in every survey. 6 February 23, 2016 -5- CITY COUNCIL'S BRIEFINGS PRINCESS ANNE COURTHOUSE (Continued) City offices: Below is the current use for Attie'', , �8 ' � #3 g ''?, � $ 4 q 3 0" '''' - ';14*" .4 , ,,,!,: 1, fi Oc� � fo� "tts. Y y., ',''4",..,T:!,"'2;'- .; , "fr-'- " 44 '':'.it i I,,,.,,..1,) „,‘,,,...lv,.,,,,,yt„,.., ham T .P fi E tra..I t € n Below are some of the problems the current occupants have reported: Current occupantse pros u i , to damage, �I tdows .. r o r settlement 8 February 23, 2016 -6- CITY COUNCIL'S BRIEFINGS PRINCESS ANNE COURTHOUSE (Continued) Also, the Courthouse has limited public access: oess iii Pubtie-A; , -, ,, . , -,,,,f t.,:. ,,,,,t4., 4 ,:, ., SII Y'�t i3P'# • �', ,, ,,,,, _sa �' , - - 4 ,..., t . , , . ,,, . , ,,,,‘,.„,:..,4, ,. .,, : : ,.,, No e e a �r� �, ST, iss Nc �, t e Cpm a� % `f ,.k '*'. t '' ,4" ' } 7 't*' �0 dR 9 Three (3) years ago, the Commission surveyed all City Council Members, Department Directors and other community leaders to determine the best use of the Courthouse: potential Repurposing uses: city museum and historic archives Conference Center Art Gallery Tourist Center io February 23, 2016 -7- CITY COS ANNE ed) UNCIL'S PRINCESCOURTHOUSE (Continu •::0,0•,:-'p",'--,•''a,',.";-r''4;''z''t.;''',:'••,,,.,*,,,'„12-.'.,.'t,i„;,,i,v,.„,-,:,k.„..t„.:2,i,-,-k2*-;?t,-',.?3”-,-,;:a,-,,,,:!.-c-*,a.n.;;-:.Jf?,.'••4:-.,„:•:,.'•-,:.-.,....'„,...t,4,-.,...-„-.:-.„:„$,7.,..-..,,-,,. histo eh 1Oo , c fan 7 ' i t rr . „ :1.' f l d1 Below is an aerial view of the Municipal Center fifty(50)years ago: 50 ears Municipal Center a • " n? _ _� x” l '. ,/It, .. . _.s \. 2016 February 23, -8- CITY COUNCIL'S BRIEFINGS PRINCESS ANNE COURTHOUSE (Continued) The Commission requests City Council authorize a Historic Structure and Engineering Study as it will require a Request for Proposal(RFP): Structure all d tex e$71 cosh ` E f � r 13 This request will help preserve the City's heritage: Preservation of City Heritagei Develop a valuable asset for South Virginia Beach 14 February 23, 2016 -9- CITY COUNCIL'S BRIEFINGS PRINCESS ANNE COURTHOUSE (Continued) F s tit . us the �°� E �E_ y [j t : t ' for {Ytilte 5 i5 The Courthouse could be used for a "Tourist Center"for South Virginia Beach Agritourism: Tourist Centerfar:South Virginia sBea h Ag r�litt i m Bed and Breakfasts Kayak routes Bird watch n , Nature studies, Equestriantra it utes Bike ro i trails 16 February 23, 2016 -10- CITY COUNCIL'S BRIEFINGS PRINCESS ANNE COURTHOUSE (Continued) ) ' ' -., . ... . ,:,..,:, ..ii;., trt ., , :rt.' -, .,, :;!,11.11,,..;','''f,:t-l'r•-:•: •• . r r.,_-- , . .,,,. ,y,,,,..,, —,:,, 4. ,. ... ,,..,,,, .„.. . ... , to; , ...,. ,,t, c ....,,- -.,,i ' ,:, ., .. .. ,, . , .,- v�.. -,,,, . ;i� ..ilkitiii .q.. a.1 •.::;-•.,......i• IAA= LA Preservation of the Courthouse could enhance tourism and promote economic development: ' ' ' : ' d ' En ,,, .: littfive:t . Il+ Development 18 February 23, 2016 -11- BRIEFING CITY COUNCIL'S S PRINCESS ANNE COURTHOUSE (Continued) the' '-$S447, C S .7, ` he a t Mei i l ' 4�k l � .f P 't I as.a s s Tr' ' V'''4,-,.--... t w . y�- ,,,.0., � 33 § f x x;� k nr �� Eyt`ter i9'. Mayor Sessoms thanked Dr. Carwell and Ms. Pope for the update and all of the work of the Commission. 2016 February 23, -12- CITY COUNCIL'S BRIEFINGS ELIZABETH RIVER PROJECT 4:23 P.M. Mayor Sessoms welcomed Marjorie Mayfield Jackson, Executive Director—Elizabeth River Project. Ms. Jackson distributed a copy of the presentation, which is attached hereto and made a part of this record. Ms. Jackson encouraged the City Council to rediscover the City's "other" river — the Elizabeth River. Ms. Jackson congratulated the City for the great things that have been done in the Lynnhaven River. While other parts of the River have improved, the Eastern Branch has the worst scores. In 2014, the Lafayette had been "de-listed"for impaired waters for bacteria and is not close to being restored for oysters. Now attention needs to be given to the Eastern Branch of the Elizabeth River. The Eastern Branch Environmental Restoration Strategy was adopted on November 17, 2014, and the Elizabeth River Project has a new Plan for the entire River- "StarPower". Ms. Jackson would like to establish an advisory committee with Council Lady Ross-Hammond as Chair, Kempsville Citizens and City Staff to determine where this Plan aligns with the City. Ms. Jackson would come back within ninety (90) days with recommendations. There were over 100 stakeholders who worked on the Eastern Branch Plan and one of the favorite parks was the City's Carolanne Farms Park. The Eastern Branch team identified property in Chesterfield Heights in Norfolk that needed some attention. With help from the homeowners and Plans produced by ODU and Hampton University, the City of Norfolk was just awarded $120- Million HUD Grant. This was the 3rd largest coastal resiliency grant in the Country. The Action Plan begins with rediscovering the Eastern Branch, improve public access, extend the Elizabeth River Trail and recruit River Star Homes. The second part of the Action Plan is to restore wildlife habitat. The larger Plan consists of a total of five (5)Actions as a part of the Plan. Mayor Sessoms thanked Ms.Jackson for the informative presentation and for the work gathering the facts surrounding an important issue in the City. February 23, 2016 Rediscover Your Other River , ,—, Eastern Branch, Elizabeth River Opportunities to Continue Partnership , ._ Restoration,Eastern Branch-Elizabeth River .-410 - : ,-....:,,:",,.,,t-...- - '_•,-;;-• , ,----• - , ..,;#711' - -•--'i.:- - :la: It'r^-V:-._ ''' '-'7'•---...-4-: - -,-- - _--I - - •-.4dt',;,,,- ' • '-7-...,- - - = : , .„ion to V•inia Beach City Council ^,-- ,_. _ .. , '' ' .it is re,,,,'-',''' It ,••-.-- -:----i,...".;•••-------.,--.,_ - &Congrat's City Manager Hansen l Feb 23,2016 I , ,..-----:-2'-'-r-.7Tgilfikir.-"*.7-----;;:', - - ' '' *-- I 0•.•.. ,,, - • "'" 1.1},-; '.7- I _ -._ -27 Eluabeth hoer ,*Projed.of:11.4 % _ 2 -,. -^,....-z-,'',''4 ' --. eY''' /if...2!..,,, 7 ' , ,,:,,c,,,,,,,.,/ ', ,:'.- ,.''''17' ''''' Kemp's Landing-Once busy Eastern Branch port State of the Elizabeth River Scorecard rr.. k 7.i- ------ t N • I E. k ' •`• _._,:., ,,L ,•.-Ir .41,,,y 0 4 ' -,,.. -- , , - ....- , 1 —,....B........1..-11111 C \J '1 .r. --:- ,1 ••,4: ; 1..Figlia=M ° -7- -c‘. '-'4 , Z1 ,,:-.....M111.1111.111111111111111110m..-- . , Juonr Y,._) ' Main Stem OVERALL C ' 1 4 Lafayette: Historic Gains with City of Norfolk Southern Branch:Most Improving Trends .tAfayette"de--listeir from state list of waters impaired for bacteria.tui , •(diner reduced six-told is tish,following 57 1.1 1 l'..,•, Mime,Point cleanup with City,A Chesapeake •l.Adayette close to being declared req.red Pa'oy-,te is , , ,• ., 'i',0111. - , -'-'1., 11 • ;o-at-re urban oasis,Paradise Creek Nature Park. - . - i I . - - •.,),;:, * _. ,,r,,,M.-r`r%-:ii, -„•-.1.' - ,rowns 20 plus proiects with C'itynt Portsmouth , :'' •'.- ;.-'•'I.'•,' N RroLk ,,,,';.' 414-1,=•-•,-1', chspeake POiISMOUTH -4‘..,_.. ,. . . . . . ,.., ..... %7. ,-;;;.,..,).--7 - ' ----1. ..,-.... • . ,. .. -'..., .6 i- L-,0 Fhntbeth RProloc S:i� 1 f Before .- - _. ' - .kYAfter Ba[Ten held,former wetlands filled in Iycosi i " It's the Eastern Branch's Time It's the Eastern Branch's Time EASTERN MEATAL .- �,� _ ENVIRONMENTAL RESTORATION STRATEGY • • s 3.:New Liaison I.New Eastern Branch Plan "+�sn�c, r_"'� 2 Star Power:Updated P-. J-r` Dr.Amelia Ross Hammond, •.��-_ ^---a k ��e: •.,...s' p Via►Ik. VB City Council � =�„ ' Elizabeth River Plan— � '�-,.�F� • _ T�T Vii;" Strong Focus,E.Branch _--_�/ Elizabeth River Project Board /o9r' r^. • Already recruiting student help1 I Requested approach if.'r Star s� �em�ato Elizabeth Rivet Prosed establish an adsioory /ss o ,ja ' committee s Ms Kmpssille citizens,advisors city i e rot' `1'N'po) staff...Dr.Ro"s Hanunont'as chair ''' STAR POWER Star Power: N6j Committee report beck to Council in 90 days with I l 55 1. .7,--1 , recommended pnority�actions -�fT • �14'eittleth.�l'l)1!1'eYSC!/.l L+.,.a w.a a •Meanwhile,ce,uncil participate with other regional \CI); • g.°/o tc", Watershed Action Plan >: dignitaries in symbolic kick-off this spring Ir ` a� ,to for the Elizabeth River "tb Rivet Elilaheth Rivet - Project t .ate- 2016 WATERSHED A Incorporates 2014 Eastern Branch Plan Top Focus Area-Eastern ., R; .t ,--may Special thanks to .. Clay Bernick, Wildlife Habitat Chair . _'= - Eastern Branch Plan led to$120 M here Action 1-Tell the Story,Enlist the Public 1I i .4 • Share the story of the tasters Branch oath all ds t es'tdent_0 idea pamphlet a.;ul) f'rEastern Branch team IDI • ..-(sk(ac. r.tl F rol ly e,name pu:t of I-2,44 Ea,tem B:uah Frani,, , - - - ts in Chesterfield * Heights,Norfolk—awarded --- HUD's 3b largest coastal St .� w, m -•,.sans.i1Rio resiliency grant -.F— " ,f i1 ii 1!rill Action 1-Goal, Recruit 2,000 River Star Homes, Action 1-Goal,Improve Public Access Eastern Branch Yit ' -.. - t -t4 " Kiser Star Homes first with fret yard flak. -- ..; ,p '� " Ea.Yend Etiznbai0 Pm,or ahl to , c ' for urian stewards . - L d M tasters Br:amcIi * t .";2' - {.� .,A •y„�, '. * Norfolk,Chesapeake. is 'e- ,mI •('ontiact with Elizabeth River Project for ,�'• ry'> $100,000.%year for pollution reductions • cum i✓f a,eIII 1 • i' _ documented by our River Star Homes ate;° . ,, Goal I Plant Native Trees' —�s • Plant),(1011 trees at one high- y ._.'ri f} '.t' _ _ xvisitalit).Nte ea.cite "*•tq ;, LR itchduck\ewtowrn VB) !4 • Promote trees in parking lots k a- ° (Hilltop case study) i -,-4' fic-. Goal - Restore 10 acres of oysters 4. __ MINI it •First acre funded:It ' �` _- c � i s:-" •Problem let els at hatntful hart G" 1 at $100.000 headwaters.tiastcrn Brand: " •EGeabethRiver :: '� � ti�^ •Illlarge retreated paved areas toimprove st,mn..i. r Project about a C.' 4 —' q trlatnli nt install abrin Norfolk ? .� - 'rK •-C shore of Eastern ewe 4- .;,a,,- Promote omote rdutan,_changes tot educe paring requirements Branch - .' 'bf°,'� ,•=y '''`"•` "4` 4* Rcgioual Usk force on septic tank,management a.._.. / Vie!, - //` / Action:The goo must go! .„--- er s�� Action:Achieve sustainable development, ,'; %, redevelopment practices /' STAR POWER Star Power: o 1 7='�7.' Action: Restore resilient natural shores i 1 v J Twentieth Anniversary ! �'�� lt,Pi Ai, Action:Restore clean water lan \?d6 4' `toy' for the Elizabeth River ti MAW. Action:Create a river revolut.n "th Rivec/ ' Acby tion: a Riveraoslife��umho and nuance and Learning Barge,"America's Greenest Vessel" promote the,eetontion at the ERsbetit Mee ..5 f. hR y r. s 3 y, i r �� Ali.� cif—.�...a� ".� Create a River Revolution Goal fi4.a*° JSTAR POWER - r Decision makers at city,state, •, ': ti i federal levels Bene as acture Vhare e champions in the restoration of 1, the Elizabeth CBS's Charles Kuralt introduced the first r Elizabeth River plan to the public,1996: tiss "When the wetlands really come back..." , � "l'Vhen forests 2 \' ` Elizabeth River Project has �' return to the ..�..... ._`^,� pioneered wetland restoration shore," i in Virginia ",,` i 18,000 i trees planted r� is "When healthyfishand clams and oysters "And the sun rises off the Atlantic in the d morning to reflect itself in the serene,pure find a home in the Southern reaches of the waters of the Elizabeth River..." river again..." Southern Branch )*\11� to ;' pkv Most improving trend, ` ..� ... 1 ','''''`i'4.• on Elrzahct`, i ffI , li:Ii.* T i •. ! A Uverrll ri.cr grade,most recent scorecard c' Request if , tot *,it - s-' "Our children and Komi 'aU '6 f, ' grandchildren will a thriving ' I' t, know that we had them N. •r in mind." ; �• ..' Foal remarks- '' 5 f ay apt nice Nkkelsburg,EG�t Elvaheih River Project '.3w s -13- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING 4:44 P.M. Councilman Moss DISCLOSED he has substantial investments in oil companies or, as some like to say, energy producing companies. However, there is no specific oil company or action regarding this presentation and, as such, he is not required to Abstain but he did want to make this disclosure. Mayor Sessoms welcomed Miles Moran, Executive Director— Virginia Petroleum Council, a Division of the American Petroleum Institute (API). Mr. Moran advised he is from the City and graduated from Frank W. Cox High School but did not return to the City after college because the City lacks desirable jobs with potential for growth and career advancement. He encourages the City to start working towards creating a job base that will encourage the City's top graduates to return home and devote their talents where they grew up. Offshore Energy Development has the potential to create `thousands of jobs and often pays more than the "IT" industry. Mr. Moran introduced Bruce Williams, President and CEO— A. Bruce Williams and Associates. Mr. Williams encouraged the City Council to support this opportunity to grow the economy with the additional revenue sources of Offshore Oil and Natural Gas Exploration. Mr. Williams introduced Brian Kirwin, of Kirwin Development Strategies, to discuss the `public opinion". One year ago, API undertook a Coastal Community Study in Virginia, as well as North and South Carolina. Here are some "key points"from the survey: • 72% of "Coastal Virginians" and 74% of Registered Voters in the City support an increase in production of domestic oil and gas; • 64% of "Coastal Virginians" and 61% of Registered Voters in the City support specifically Offshore Drilling off their Coast; • 61%feel Offshore Drilling is environmentally safe and the benefits outweigh the risks to the environment; and, • The#1 reason of opposition was if it were to interfere with Navy operations. Also, twice as many Virginians believe we will need more energy in the future. In closing, the City is "Pro" Offshore exploration and drilling. Mr. Kirwin introduced Erik Milito, Group Director—API, who provided today's presentation: February 23, 2016 -14- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) energy Offshore Oil and Natural Gas Exploration: Continued Opportunities for the Atlantic and the Nation Erik Milito Director,Upstream&Industry Operations American Petroleum Institute Mr. Milito advised the United States is the world's largest producer of Natural Gas: energy Top Natural Gas Producers 70 6 50 scrd 30 40 20 10 I I I I ■ ■ ■ ■ ■ 0 ce 401, op/ `szo a.ee,NW.w„n,mW x z000s 4070. W>.c February 23, 2016 -15- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) Crude Oil production's peak was in 1970; however, since 2010, the production has greatly increased: eneyy US Crude Oil Production 12 -_---- +4.4 AAIbbld +90% 10 Peaked in 1970 _* 0 k 8 6 S m 4 Average 2008 5.0 MAAbbid 2 Average 2015 9.4 MtAbbld g o .n v g �+ g m m oO1�+ .�. N g ry H EIA ti .mi .moi �..� mi ,y ,y The US Crude Oil Net Imports versus production is shown below. This change is mainly due to policy decisions made as a Country: U.S. Crude Oil ene gy lo Net Imports vs. Production •U.S.Crude Oil Net Imports •U.S.Crude Oil Production 12 10 Y 6 m 6 4 f m 4 2 0 Source:EIA 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1210 L Sticet NW WasM1ing�n.DC 20005-r0—G ,n., y g A February 23, 2016 -16- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) energy Offshore Oil Production IIIIIMIMIIIIIIIMIII i IMIESENMEEMEME The key is to unlock America's Offshore Energy opportunity as 87%of Federal Offshore acreage is "off- limits" due to development. It is important to be forward thinking and ask ourselves where we will be getting oil from in ten (10) to twenty(20)years from now: energy Unlocking America's Offshore Energy Opportunity ire Undocovend,e ,,r Recoverable Dedra ON and Pastoral Gas Remoras wan r { ' e. r 'jZ'' ;,r. ' 87%mieorr ,f >.:.0Ce Vmn M oevNopmeel t` ,.,�.. _� .kms y exiu •a iiia , ® �o iu.r er..w.. 1.W.Iwnsr w.sw ■ar February 23, 2016 -17- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) The Plan proposed by the Department of Interior is for five (5) years for the Lease Sale from the Maryland Border to the Florida/Georgia Border with no activity fifty(50)miles from Coast. The average is$1-Million per Lease. A Lease is a little over 5,700 acres; !IA-18701 Jw Y..,.... R _e .r......Form. .......wad....Ylk energy norm.Aar ^ t w.e..wr ;(r/. rer er }it,-� NOM.Allende r rd aMIi.Albsfii t..._.. •eeln AII.Mia 1j {}tg Straits of I: ;� lerlee The data below is from the 80's and it is unknown if oil or natural gas is off the Coast; but, this will give companies an opportunity to determine if there is oil or natural gas. In reality, nothing could be produced any earlier than fifteen (15) to twenty (20)years: energy Getting to Oil or Natural Gas �� _____ ■■■]■■■■■■■■■■■■■■ ®111:21'"1 __ ■■■D ■■■■■■■■■■■ ®® 4ir=■■11■ 1111■■ m® r _ _iiiiiiillII■■■r_._■■■■■■■■■■■■ �� ■■I11■■2■■■1111■■■■■■ iniiiiiirsiiriii111111111131111111111111111111111111 ��'"'�'''�'�■■■■r■C�■■■■■■■■11■ ®® isn'"'"111■■■11■■ ® "*..'''*"'"'' M1111■■■■■■■■G■■■■■■■■■ —11110 ■■1111■■■■t■■■■■■■■■ ®m ■■■■■■1111■711■■■■■■■ �� _=►�� a.�r�■■■■■■■■■CJ■■■■■■■ 11111111•111 1111■■11■■■■■E11■1111111■ =' ! , '• 41111■■■■■■■.a . February 23, 2016 -18- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) Below are the projected National Economic Impacts of expanded Atlantic access: energy Projected Economic Benefits of Expanded Atlantic Access National Economic Impacts Job Creation by 2035 280,000 Total Increase in Capital Investment $194 Billion Total Increase in GDP/Year by 2035 $23 Billion Energy Production by 2035 1.34 MMBOE/D Cumulative Government Revenue $51 Billion Cumulative State Government Revenue $19 Billion Below are the projected Virginia Economic Impacts of expanded Atlantic access: energy Projected Economic Benefits of Expanded Atlantic Access Virginia Economic Impacts Job Creation by 2035 25,000 Total Increase in Capital Investment in the State $14 Billion Contributions to State Economy/Year by 2035 $2.2 Billion Cumulative State Government Revenues $1.9 Billion February 23, 2016 -19- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) Mr. Milito distributed the Improvements to Offshore Safety, a copy of which is attached and made a part of this record: energyh �. " 444 • Safe and Environmentally Responsible Operations energy Government Regulations • BSEE Final Drilling Safety Rule • Establishes new casing installation requirements; • Establishes new cementing requirements; • Requires independent third party verification of blind-shear ram capability; • Requires independent third party verification of subsea BOP stack compatibility; • Requires new casing and cementing integrity tests; • Establishes new requirements for subsea secondary BOP intervention; • Requires function testing for subsea secondary BOP intervention; • Requires documentation for BOP inspections and maintenance; • Requires a Registered Professional Engineer to certify casing and cementing requirements;and • Establishes new requirements for specific well control training to include deepwater operations. • Safety and Environmental Management Systems February 23, 2016 -20- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) energy Government Regulations The United States Coast Guard • Rulemaking on operations and equipment on MODUs • Voluntary Incident reporting for MODU dynamic positioning systems • Rulemaking on testing and training requirements for lifesaving and firefighting equipment on MODUS and floating production facilities. • Memorandum of Agreement with BSEE on MODUs and SEMS/SMS • Proposed reorganization of its management of offshore inspections to provide for a single point of responsibility • New proposed SEMS Rule for entities under USCG jurisdiction energy Center for Offshore Safety SAFFiY Our Mission... Promote the highest level of safety for offshore drilling,completions,&operations by effective leadership,communication,teamwork, utilization of disciplined safety management systems & independent third-party auditing&certification. February 23, 2016 -21- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) ene9Y;a Industry Standards •4th Edition Std 53 Blowout Prevention Equipment Systems for Drilling Operations •2nd Edition Std 65-2 Isolating Potential Flow Zones During Well Construction •15t Edition RP 96 Deepwater Well Design and Construction •15t Edition Bul 97 Well Construction Interface Document Guidelines •1st Edition RP 17W Recommended Practice for Subsea Capping Stacks •1st Edition API Spec Q2 Specification for Quality Management System Requirements for Service Supply Organizations for the Petroleum and Natural Gas Industries •4th Edition API Spec 16A Specification for Drill-through Equipment •2nd Edition API RP 17H Remotely Operated Tools and Interfaces on Subsea Production Systems energy Subsea Well Control & Containment tF • ''� j9 Containment Companies (MWCC/HWCG) Must provide flexible& adaptable systems to contain the well subsea&provide subsea production capability via subsea equipment,risers,&containment vessels that will safely capture, ® store and offload the oil 1=1 p , M� fir. February 23, 2016 -22- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) energy, Oil Spill Preparedness and Response Oil Spill Response Organizations (OSROs) Oil Spill Response Tools: •Oil spill response plans 'Oil sensing and tracking •Dispersant use and application •In situ burning 'Mechanical recovery capabilities 'Shoreline protection and cleanup izzo�soaamw wnsnmgm.oc z000s-ao�o .NN,arog ii The Compatible Use of the Coexistence of Military and Outer Continental Shelf for Oil and Gas Energy Production and Military Training and Operations > Long history of collaboration between government agencies November 6,1009 and industry a.re.«.a. > Memorandum of Agreement in The Marian Petroleum Institute place between DoD and :. " LO energy/' ■ Department of the Interior F�d114/A" lv sr - > Military stipulation in every =`i6�'�; lease bYnCw9Eirf\ > Drilling Window Program in «,,e,«a `. place 3> Previous activity in military \ ? training areas February 23, 2016 -23- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) The U.S.will require 12 percent more energy In 2040 and energy more than 60 percent of it will be met by oil and natural gas 120 1974 2012 2040 3.3% 2.8% 100 3.7%f'; 6 0% 9.1% 8.5% 8.1% 80 ■Hy dro 17.6 18.2% ■Renewables % t 9.7% 60 •Nuclear 76 25.9% 27.6% 30.4% a Coal 40 •Natural Gas ■Oil 20 43.8% 36.5% 31.9% 0 ti CM a) a) O)0(0 W ON) 00) O N N (�') O) O O O O O O O N N N N N N N Source EIA Most energy analysts agree that sustaining even modest energy economic growth worldwide for the next several decades NM-IIwill require massive new investments in oil and natural gas Future Global Energy Demand The world will require 56 percent more energy in 2040 than h,2010. 4rSi Nuoear 2040 yrxi a Renewabes �IJaturo Gey :u0 Coa.. ,.,f . Hon ■Oil 20)0 '", 1980 4-44 100 *} �� 0 asr^ ," 1900 2010 2040 February 23, 2016 -24- CITY COUNCIL'S BRIEFINGS ENERGY BRIEFING (Continued) energy National Security General Martin Dempsey,Chairman of the Joint Chiefs of Staff: "An energy independent[U.S.]and net exporter of energy as a nation has the potential to change the security environment around the world—notably in Europe and in the Middle East. And so, as we look at our strategies for the future, I think we've got to pay more and particular attention to energy as an instrument of national power. And because it will very soon in the next few years potentially become one of our more prominent tools." 1220 L Stiec+.NW Washington.DC 20005-a00•+vw.+api oig �+ energy Thank You For more information visit www.api.org www.energytomorrow.org www.enerqvcitizens.orq II20 L5treol NW Wasnm9+cn DC_OOOS iLN ,nn aF 9 22 Mayor Sessoms thanked Mr. Milito and all of those today for a very informative presentation. February 23, 2016 ñbövërëñtsd y� FFSHORE SAFETY w , .____ • ,, ,dy i::si;..„,•s,.i,,:i:::,: ., s.a s• s, ,.„.„, :.a,s:,s . ,,,♦ ,,;, .; af. f isy,s„s_.„..„araF .,__ ,,,_,.., ,-,',,,,,,___._ .,...........„,.. ., , .„ BY INDUSTRY AND GOVERNMENT ,,:...,,,,,,,,,,„.„,„„ .,...,. . .. : ., . ' - ......... „. . .,_ , . . . . : . ,e- ...- - - . - . .."`”, --• i , .,,,,,, . _ _ .. ' i ..,-.,,e. ,:.. i .. _-. r t ` a 'fes R Sae _ f � ,,F , Y , e N ,P j f k .d” r At F ...sem _ c . otair It a Iii . . ...„.... ; . , ...„ ;;,. I 0 1 ,,, . . v. . 141 ''''?,...1... . ' . " ' --"'''..-'''',---''.4'4 ' ft.' ,i; .i..7- ',< ,„''.-.. -- ,. 7',-„:',;i::'„:'.' ''''''' i ,,..i : ,. ,, . 4 I :P4'"' g 0 i energy- ApriI , 2015 Copyright 2015-American Petroleum Institute,all rights reserved.API and the API logo are either trademarks or registered trademarks of API in the United States and/or other countries.Digital Medial DM2015-062 103.25 1 PDF ,i . , , , , [ INDUSTRY , , . , JITF Reports In response to the Gulf of Mexico (GUM) incident, drilling operations and oil spill response; the U.S. oil and natural gas industry launched a with the definitive aim of enhancing safety comprehensive review of offshore safety. and environmental protection. Four Joint Industry Task Forces (JITFs) were , assembled to focus on critical areas of GUM The ultimate goal for these JITFs is to improve offshore activity:the Joint Industry Offshore well containment and intervention capability, spill Operating Procedures Task Force,the Joint Industry response capability, and Industry drilling standards Offshore Equipment Task Force,the Joint Industry to form comprehensive safe drilling operations; Subsea Well Control and Containment Task Force, not only through evaluation and revision of and the Joint Industry Oil Spill Preparedness and Industry guidelines and procedures, but also active s. Response Task Force. engagement with regulatory processes. The JITFs were not involved in the review of the incident; rather they brought together Industry ,..,.,..... -, , experts to identify best practices in offshore *.... — . . ,... - JITF r ..,..,... , . W . i a ,, http://bit.ly/1 xjpj49 1 4 , ' ,,' ' ' 1 1=', , 4 N1,...t.' -- ' . . .f., I ' 414.'46 1' ,. I 1, 1 I -'' ' * • , : ' '' '' 6- •,, 0," , ,o-, ,- \ ‘t , . \ ...441,. . ‘ VA j I 1 ice; y a i [ Standards ] API is the world's leading standard-developing organization for the oil and natural gas industry and has developed standards since 1924. API's formal consensus process is accredited by the American National Standards Institute(ANSI),the same institute that accredits similar programs at several U.S. national laboratories. API standards are developed in an open and transparent process and are the most widely cited oil industry standards by Federal, State, and International Regulators.Since 2010 API has published over 100 new and revised exploration and production standards. Key standards include the following: New Documents: » RP 96, Deepwater Well Design and Construction, >> Specification Q1, Quality Management System 1St Edition, Mar. 2013 Requirements for Manufacturing Organizations for >> Bulletin 97,Well Construction Interface Guidelines, the Petroleum and Natural Gas Industry, 1St Edition,April 2011 9th Edition,June 2013 Specification Q2, Quality Management System » Specification 14A,Subsurface Safety Valve Requirements for Service Supply Organizations for Equipment, 12"Edition,January 2015 the Petroleum and Natural Gas Industries, 15t Edition, » Specification 16C, Choke and Kill Systems, Dec. 2011 2nd Edition, March 2015 » RP 17W, Subsea Capping Stacks, 1"Edition, July 2014 Documents Under Development: • TR 17TR8, High-temperature, High-pressure Design » Specification 16A, Specification for Drill-through Guidelines, 1"Edition, February 2015 Equipment , 4"Edition » RP 17V, Recommended Practice for Analysis, Design, » Standard 16AR, Repair and Remanufacture of Installation,and Testing of Safety Systems for Subsea Blowout Prevention Equipment, 1St Edition Applications, 1St Edition, February 2015 Specification 16D, Control Systems for Drilling » RP 98, Personal Protective Equipment Selection for Oil Well Control Equipment and Control Systems for Spill Responders, 1"Edition,Aug. 2013 Diverter Equipment, 3rd Edition » TR 1PER15K-1, Protocol for Verification and Validation » Specification 16F, Specification for Marine of High-Pressure and High-Temperature Equipment, 1st Drilling Riser Equipment, 2od Edition Edition, March 2013 >> Recommended Practice 16Q, Design,Selection, » RP 2SIM, Structural Integrity Management of Fixed Operation and Maintenance of Marine Drilling Offshore Structures, 1St Edition,June 2013 Riser Systems, 2nd Edition » Specification 16R, Marine Drilling Riser Couplings, Revised Documents: 2nd Edition » Standard 53, Blowout Prevention Equipment Systems » Specification 16RCD, Drill Through Equipment- for Drilling Wells,4th Edition, Nov. 2012 Rotating Control Devices, 2nd Edition » Standard 65-2, Isolating Potential Flow Zones During » Recommended Practice 16ST, Coiled Tubing Well Construction, 2nd Edition, Dec.2010 Well Control Equipment Systems, 2' Edition » RP 17H, Remotely Operated Tools and Interfaces on » 18 Life Cycle Management, 1"Edition Subsea Production Systems, 2nd Edition, November 2014 fir, �% r,. `�� %/i� t [ Center For Offshore Safety (COS) ] The Center for Offshore Safety(COS)supports and enables continuous understanding and improvement in safety and environmental management systems(SEMS). The work is based on API Recommended Practice 75. Mission: Promote the highest level of safety for offshore drilling,completions,&operations by effective leadership, communication,teamwork, utilization of disciplined safety management systems&independent third-party auditing&certification. COS Areas of Activity: ► Decision making at all levels will not compromise SEMS audit tools and audit service provider safety accreditation / Safety processes,equipment,training,and technology SEMS Certification Program for Operators and undergo constant examination and improvement Contractors ► Members will share learnings and embrace industry / Data and learnings collection and analysis of Safety Standards and best practices,to promote continual Performance indicators and Learning from Incidents improvement SEMS Good Practice Development / Open communication and transparency ► COS Safety Events and Programs of safety information is utilized to build mutual trust among stakeholders and promote collective The COS Works to Achieve Operational improvement in industry performance Excellence by: ► Collaborative approaches are utilized to drive safe and responsible operations ► Enhancing and continuously improving industry's / Everyone is personally responsiblefor safety and safety and environmental performance empowered to take action / Gaining and sustaining public confidence and trust in the oil and gas industry ► Increasing public awareness of the industry's safety The Center For Offshore Safety has developed and environmental performance Safety and Environmental Management Systems / Stimulating cooperation within industry (SEMS)tool kits,as well as auditor qualification, to share best practices and learn from certification,and accreditation tools. each other Providing a platform for collaboration between All of these are available on their website: industry,the government,and http:iiwww.cen errri tor I other stakeholders Guiding Principles of the COS Include: / Industry leaders demonstrate a visible commitment ,. to safety / Operators,contractors,and suppliers work together to create a pervasive culture of safety / ' ,,� s - / �ir " /-p," 3i !c '/ : ii : /m ' � °w � ' /. z / k - � �N / i 9 r i%] " fin j4 .;*%i k4t ,j fF [ Subsea Well Intervention Capability ] The Marine Well Containment Company(http://www. These systems also provide the potential to capture flow marinewellcontainment.com)and the HWCG,LLC from a subsea well incident via subsea equipment, risers (http://www.hwcg.orq)were founded in 2010 to provide and containment vessels that can safely capture,store and containment technology and response capabilities for the offload the oil. unique challenges of capping a well that is releasing oil thousands of feet below the water's surface. These companies maintain quickly deployable systems that are designed to stem any uncontrolled flow of hydrocarbons from a subsea well and facilitate training of their member companies on the installation and operation of these systems. MWCC Containment System in a Cap and Flow Scenario "w tart+ itt ;, art it ., Otte-r44.4 MOW • twilit'WW1 . .L _ .,1 in44.4d { I :N , '. PM UMW- KW Amin.foldhlio , .i IOW Iii SW Nkinio u soul Sam . ig wow irr.�s w.� 11 tratatiar .d $ r. pi Photo Copyright 2010-2015 Marine Well Containment Company [ oil Spill Prevention and Response ] ► Oil Sensing&Tracking http://www.oilspillprevention.org / Remote Sensing Planning Guidance / Mechanical Recovery The U.S.oil and natural gas industry is committed to meeting the nation's energy needs while maintaining safe and environmentally sound operations.This requires continuous [ Dispersants ] investment and improvement in every phase of preparedness and operations in which oil is produced,transported,stored, » Dispersants Fact Sheet l— and marketed. Introduction to Dispersants >> Dispersants Fact Sheet 2— Exploration and production facilities use advanced Dispersants and Human Health and Safety technologies, materials,and practices,which incorporate >> Dispersants Fact Sheet 3— multiple back-up safety systems. Pipelines employ computers, Fate of Oil and Weathering electromagnetic instruments,and ultrasonic devices that detect vulnerabilities to enable proactive maintenance and » Dispersants Fact Sheet 4— repair.Marine terminal and vessel designs are constantly Toxicity and Dispersants improved;tankers,for example,are now built with double >> Dispersants Fact Sheet 5— hulls as an extra measure of security. Dispersant Use Approvals in the United States » Dispersants Fact Sheet 6— Additionally,storage tanks are now constructed with special Trade Offs materials to withstand corrosion.Industry also invests in practices and technologies that ensure a quick and effective >> Dispersants Fact Sheet 7— response in the event of a spill. Aerial Vessel » Dispersants Fact Sheet 8— The United States has established one of the world's most Subsea and Point Source Dispersant Operations sophisticated and well-coordinated spill response networks » Dispersant Fact Sheet 9— by bringing together the resources and expertise of private Dispersant Use&Regulation Timeline industry,public agencies,and academia to make sure we » Dispersant Fact Sheet 10— learn everything we can from past incidents. Dispersant Use in the Arctic Environment » Industry Recommended Subsea—Dispersant [ Responders ] Monitoring Plans » API JITF Subsea Dispersants Injection Newsletters RP on Oil Spill Response Plans (In Development) Oil Spill Response Technical Reports: » The Role of Dispersantsin Oil Spill Response >> SINTEF Dispersants Effectiveness Report—Phase I Spill Response Planning: In-Situ Burning » API Training and Exercise Guidelines „ Mechanical Recovery » Guidelines for Offshore Oil Spill Response Plans >> Deepwater Horizon Mechanical Recovery System >> Personal Protective Equipment Selection for Oil Evaluation Technical Report 1143 Spill Responders » Net Environmental Benefit Analysis(NEBA) Graphical Briefing [ GOVERNMENT ] The Federal Government • The Bureau of Safety and Environmental Responded to the Macondo incident by reorganizing Enforcement (BSEE), responsible for the Minerals Management Service (MMS) and enforcement of safety and environmental focusing on four areas of regulatory policy:1)blowout protection in all offshore energy activities; prevention, 2) drilling safety, 3)spill response and 4) well containment. To help accomplish this, the MMS and, was reorganized into three new agencies: • The Office of Natural Resources Revenue (ONRR), responsible for management of • The Bureau of Ocean Energy Management royalties and revenues. (BOEM), responsible for energy leases in areas of the U.S. Outer Continental Shelf; • These new agencies identified areas for improvement through a series of regulatory - ` and policy actions, including: V , - .._ ,..... The Bureau of Ocean r -- - m �- http://wwwEnergyManage.boem.gent ti i 0 1 ov 175, Cli ,ir il if I ,� The Bureau of Sat; ` � � and ronmental ..4",,,,,,- � � � forceri ent iii,- , , http://www.bsee.gov II III III _' The Office-of Natural Rc'"'Irrl'ie§Revenue # e, http://www.onrr.gov it 04 ' " ail 46; 4 i ,fill 4: r.. et i , ► Shoreline Protection » Shoreline Protection on Sand Beaches(aka Berms » Oil Spills in Marshes and Barriers) Guide Subsurface Oil Detection Report » Mechanized Cleanup of Sand Beaches Report » Subsurface Oil Detection Field Guide » Tidal Inlet Protection Strategies(TIPS) Report » Subsurface Oil Detection and Delineation in DBiodegradation8BioremediationonSand Shoreline Sediments Phase 2—Final Report Beaches Report » Shoreline Protection on Sand Beaches(aka Berms ► Alternative Response Technologies and Barriers) Report » Evaluation of Alternative Response Technology Evaluation (ARTES)Technical Report 1142 M+ £4roe lamad Tera t n 4404 tn-.tribe iiin'irE Dispennota DOOMS • : i. , ! .. t I 4, h.. M.w4ui Riran.re v Menitn'ie�p1. et 3{a+ lv r r�drwtt�red .„ E YN�1 [ Regulations & Notices to Lessees and Operators (NTLs) ] ► Issued NTL No. 2010-N06, Information Requirements Specific approvals needed for change-out to for Exploration Plans, Development and Production lighter weight fluids and negative test procedures Plans,and Development Operations Coordination » Blowout Preventer(BOP) and Control Systems Documents on the OCS June 18, 2010, provided FAQs July 15,21 and August 10 New blind-shear ram function testing and 3'd Party verification required ► BOEMRE published an Interim Final Drilling Safety Rule October 14,2010 New requirements&function testing for auto shear&deadman systems BOEMRE published a Final Safety and Environmental Safety Systems Rule October 15, 2010 Minimum requirements and testing for ROV intervention established ► BOEMRE issued NTL No. 2010-N10,Statement of Compliance with Applicable Regulations and BOP inspection&maintenance to API RP 53 required Evaluations of Information Demonstrating Adequate Minimum requirements established Spill Response and Well Containment Resources for personnel operating BOP equipment on November 8, 2010 / Worst Case Blowout Discharge (WCD)&Blowout Response ► Published the Final Drilling Safety (NTL-2010-N06) policies were established. Rule August 2012 >> New requirements and definitions for WCD calculations 1 Published the Final SEMS II Rule April 2013 » New requirements for describing intervention&relief Published Safety Culture Policy Statement May 2013 well drilling constraints / Published Proposed Production Safety Systems / Demonstration of adequate spill response capability Rule August 2013 and well containment resources(NTL-2010-N10) ► Published Proposed Aviation Regulations November 2014 were required. 1 Published Proposed Arctic Regulations February 2015 » Signed statement of compliance required 1 Proposed Well Control Rule April 2015 >> Well Containment Screening Tool developed to demonstrate that well design withstand being capped or captured Some of the Detailed Requirements From the Above: >> Well Containment Plan required(usually including a contract for the services of a Well Containment Company) / Drilling Safety Rules(Interim Final Rule) Must demonstrate access to equipment&staff » Well Integrity resources to deploy containment prior to drilling a well ► Isolating Potential Flow Zones 1 Safety and Environmental Management Systems (Use of API RP 65-2 became mandatory) regulations were strengthened. Well design(casing and cement program) >> All elements of API RP 75 Safety and Environmental must be certified by Professional Engineer(PE) Management System (SEMS)were made mandatory ► Two Independent Barriers (certified by PE) » SEMS audits and reporting are now required during completion activities » Operators are now responsible for verification ► Procedures for installation, sealing,and of Contractors SEMS locking of casing hangers required >> As of June 2015 SEMS must be audited by an accredited audit service provider(ASP) U.S. Coast Guard (USCG) Actions Post Macondo / Published new Marine Casualty Reporting forms and ► Published a policy letter establishing Alternate a proposed rule on Marine Casualty Reporting. Design and Equipment Standard for Floating Offshore Installations(F01)and Floating Production,Storage, / Published proposed revisions to Crane Regulations. and Offloading (FPSO) Units on the U.S. Outer / Published voluntary guidance for compliance by Continental Shelf. US flag vessels with MARPOL Annex VI International / Published an advanced notice of proposed rulemaking Energy Efficiency(IEE) requirements.Proposed on regulations that will require certain vessels regulations expected. operating on the OCS to develop, implement and Published a final rule amending Vessel Inspection maintain a Safety Management System. Alternatives regulations to add the International / BSEE and the USCG announced a new MOA to Energy Efficiency(IEE) Certificate to the list of strengthen the working relationship between their certificates that a recognized classification society two agencies on the management of safety and may issue on behalf of the Coast Guard. environmental protection responsibilities on the OCS. / Published final regulations for 3rd-party testing& The new MOA was effective on April 30, 2013. certification of electrical equipment in hazardous / Published draft revisions to the Marine Safety Manual locations on newly constructed MODUs,floating OCS (MSM,Volume III, Chapters 20-26 Marine Industry facilities,and vessels other than offshore supply Personnel). vessels(OSVs)that engage in OCS activities. BSEE and the USCG signed a MOA for regulating ► Published Interim Voluntary Mobile Offshore Drilling MODUs on the OCS.Through this agreement,both Unit(MODU) Dynamic Positioning (DP) Guidance for BSEE and the USCG will work together to identify DP system guidance and recommended DP incident and coordinate responsibilities for the inspection and reporting criteria. oversight of MODUs. / USCG issued Safety Alert#08-14 jointly with BSEE's / The Coast Guard has encouraged drilling contractors SA 312 on Dynamic Positioning System Failures and Flag Administrations who employ foreign vessels on Vessels Other Than Mobile Offshore Drilling in GOM to provide marine crews for their MODUs Units(Vessels). consistent with the interpretation in Appendix Ito / Published a proposed rule establishing minimum USCG Deepwater Horizon investigation. design,operation,training,and manning standards ► The USCG upgraded its OCS training by sending for mobile offshore drilling units(MODUS)and other vessels using DP systems to engage in Outer Offshore Inspectors to training for MODUs and production units at the ABS Academy,taking Continental Shelf(OCS)activities. advantage of similar industry provided training,and / Published a proposed rule amending rules relating working with BSEE to send Coast Guard Offshore to production testing of lifesaving equipment and Inspectors to some of their training programs. harmonization with international standards. ► The USCG is planning to establish a single Officer / Published Interim Voluntary Guidance on Lifesaving in Charge, Marine Inspection (OCMI)to oversee and Fire-Fighting Equipment,Training and drills marine inspection activity for all MODUs and floating onboard manned offshore facilities and MODUS OCS facilities(such as FSUs)engaged directly in, on the OCS. capable of engaging directly in,or being constructed / Published a proposed rule on Harmonization of to engage directly in oil and gas exploration or Standards for Fire Protection, Detection,and production in offshore waters of the Eighth Coast Extinguishing Equipment. Guard District. I Published a final rule on nontank vessel response or in support of the exploration of offshore mineral plans and other response plan requirements. and energy resources insofar as they relate to matters ► Issued an ALCOAST related to cyber security and the within U.S. Coast Guard jurisdiction. This advice Marine Transportation System. also assists the Coast Guard in formulating the / Published proposed changes to its maritime safety position of the United States regarding the offshore industry in advance of International Maritime training requirements to cover all persons other than Organization meetings. crew working on offshore supply vessels(OSVs)and mobile offshore units(MOUs)engaged in activities / NOSAC Completed Reports since 2010: on the U.S. Outer Continental Shelf(OCS),regardless » Dynamic Positioning Operational and Installation of flag. Guidelines—Final report submitted February 9,2011 Published interim voluntary guidelines concerning fire >> Dynamic Positioning Operating Personnel Final and explosion analyses for MODUs and manned fixed Report—Final report submitted November 8,2012 and floating offshore facilities engaged in activities on » Certification and Standards for Large OSVs the U.S. OCS. —Final report submitted May 19,2011 ► Published an Interim Rule regarding Offshore > Mississippi Canyon Incident Reports Review Supply Vessels of at Least 6,000 GT ITC to ensure —Final Report submitted November 8, 2012 the safe carriage of oil, hazardous substances,and >> Accommodation service vessels engaged in OCS individuals other than crew by requiring U.S.-flagged OSVs of at least 6,000 gross tonnage as measured activities—Final report submitted November 14,2013 under the Convention Measurement System to » Electrical Equipment Certification in Haz Locations comply with existing regulatory requirements and on FF MODUs international standards for design,engineering, —Final Report submitted November 14,2013 construction,operations and manning, inspections, » Additional Lifesaving and Fire Fighting and certification. Requirements on the OCS Proposed to increase the limits of liability for vessels, —Final Report submitted November 14,2013 deepwater ports,and onshore facilities,under the » Safety Impact of Liftboat Sea Service Limitations Oil Pollution Act of 1990,as amended (OPA 90),to —Final Report submitted November 14,2013 reflect significant increases in the Consumer Price » Review of Coast Guard Marine Casualty Reporting Index(CPI). —Final Report submitted November 14,2013 ► Solicited comments on a policy to help vessel and » Safety Management Systems for Vessels facility operators identify and address cyber-related operating on the OCS vulnerabilities that could contribute to a Transportation —Final Report submitted April 17,2014 Security Incident. » Marine Casualty Reporting on the OCS / Developing revisions to Subpart N Regulations which —Final report submitted September 20, 2014 covers the safety and security of MODUs,floating and » OSV Purpose and Offshore Workers fixed facilities on the OCS. —Final report submitted November 19,2014 / National Offshore Safety Advisory Committee (NOSAC) » Training and Manning on MOUs and OSVs https://homeport.uscg.mil/nosac Operating on the OCS ► The USCG has a Federal Advisory Committee,tasked —Final report submitted November 19,2014 by the Secretary of Homeland Security to provide „ Commercial Diving Safety on the OCS recommendations and advice on all matters and —Final Report submitted April 8,2015 actions concerning activities directly involved with Additional Government Resources Ocean Energy Safety Institute (OESI) ( BOEM Changes in Lease Terms BSEE Fact Sheets: for Deepwater Leases iitto:i/1.usa.gov/1 NIA]kM ht ://1.usa. ov/1ND' XcZ OESI Website: http;.ioesi.tamu.edu/ BOEM Publishes Proposed Adjustment to Limit of Liability for Offshore Facilities w http://www.boem.goy/press02212014 i BSEE Confidential Near- Miss Reporting System http:ii1.usa.govilNDrxyZ BOEM Limiting Use of Categorical Exclusions in NEPA Work I htt :i/on.doi. owl N 1 t1 t9 BSEE National Offshore Training Program BOEM Updated o uidance on Protection of httl�:i1 l.usa.govi I Nth HU() Archeological Sites' htt ://1.usa. ov/ ND asi BSEE Technology Center - r Minimum Bid For Deepwater Acres IIttp:/i I.usa.gov;I NUsyaL htt i:iion.doi. ow I N thbl Copyright 20t5—American Petroleum Institute,all rights reserved.API and the API logo are either trademarks or registered trademarks of API in the United States and/or other countries.Digital Media I DM2015-062 103.25 I PDF -25- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT 5:28 P.M. Mayor Sessoms introduced and welcomed Jerald Banagan, City Assessor. Mr. Banagan advised this presentation will provide the projected FY2017 Real Estate Assessments. Mr. Banagan expressed his appreciation to City Council for the opportunity to provide this information: Real S4tate,lddeadan d Annual Presentation to City Councilr v , '1b.- • • Projected FY 2017 Real Estate Assessments Assessments $53,694,782,500 Tax Revenue* $ 531,578,347 `Based upon FY 2016 tax rate of$0.99 Each$.01 of the tax rate will generate $5,369,000 • February 23, 2016 -26- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) The overall median change is 2.34%and overall mean change is 2.79%: Average Appreciation/Depreciation Overall Median Change Overall Mean Change 2.34% 2.79% Residential 2.38% Residential 2.79% Apartment 4.71% Apartment 6.78% Commercial/Industrial 0.9% Commercial/Industrial 2.29% • The City has had an increase in assessments since 2015: Average Appreciation/Depreciation Fiscal Year Median Change Mean Change 2017 2.34% 2.79% 2016 1.44% 1.94% 2015 1.76% 1.93% 2014 0% -2.22% 2013 -4.87% -5.29% 2012 -2.56% -3.09% 2011 -4.84% -5.54% 2010 -3.32% -3.46% 2009 0% 2.56% 2008 21.36% 18.54% February 23, 2016 -27- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) Average residential values have a positive change with the biggest increase in low rise condos followed by single family homes: Averaae Residential Values Median Mean Type Number Assessment* Assessment* Change in Mean Single Family 98,081 $260,100 $322,000 $10,200 3.3% Townhouse 19,701 $134,500 $147,300 $ 3,700 2.6% Low Rise 20,325 $189,500 $226,800 $10,000 4.6% Condominium High Rise 2,842 $270,800 $299,700 $-5,500 -1.8% Condo/Co-op Duplex/Home 1,366 $312,000 $448,000 $21,900 5.1% with Apartments All Residences 142,315 $230,900 $284,800 $ 8,700 3.1% •Rounded to nearest 0700 Averaae Home Assessment $340,000 $325,000 kik v $310,000 wr $280,000 $285,000 --------. — $250,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fkcal Y.•t February 23, 2016 -28- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) Assessment Comparison by Classification Classification 2017 Assessment General Commercial 10.1% Hotel 2.0% - 16.7% Office 3.0% Industrial 1.6% — Apartment 6.5% Residential 60.9% Townhouse 5.4% 83.3% Condominium 10.2% Agriculture 0.3% • a The City had an increase in new construction of approximately $348-MILLION, with 76.2% being residential construction: New Construction (January 2015 thru December 2015) Commercial 21 General Commercial $54,392,300 4 Office 4,670.200 1 Hotel 5,819,300 2 Industrial 1,200,300 23 Commercial/lndust,ial Additions 16,734,200 Total Commercial New Construction $82,816,300 23.8% Residential 325 Single Family $117,375,500 12 Duplexes 4,604,200 361 Condominium Units 67,983,500 329 Apartments 40,433,700 1,118 Residential Additions 35,033,900 Total Residential New Construction $265,430,800 76.2% • Total New Construction I$348,247,1001 100%• • • February 23, 2016 -29- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) Number of New Housing Units Built 2000 * u 1500 • s 1000 V '4 500 - 2008 2007 2008 2008 2010 2011 2012 2013 2014 2015 Calendar Year • • The projected FY17 Assessment Change is 3.0%: Growth and Appreciation/Depreciation 20%15% o � 10% *6 5% o% -5% 2008 2006 2010 2011 2012 2013 2014 2015 2018 2017 Fiscal Vw, ■Growth rr Appreciation/Dopreciation Fiscal Year 2011(Projected) Growth 0.6% Appreciation 2• Assessment Change 3.0% February 23, 2016 -30- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) Both TIFs increased in value. The Sandbridge TIF is over$1-BILLION: Tax Increment Financing & Special Service Districts Sandbridge District TIF&SSD Base Year FY 1998 $206.1 Million • Preliminary FY2017 $ 1.1 Billion Central Business District South TIF* Base Year FY 1999 $151.8 Million Preliminary FY2017 $811.1 Million SSD First Year FY 2003 $ 18.5 Million Preliminary FY2017 $419.1 Million FY 2017 as of January 2016 CBD South TIF includes the 55D • • The City has six(6)Special Service Districts: Neiahborhood Dredging Special Service Districts SSD District FY 2017 Preliminary Old Donation Creek $36.9 Million Bayville Creek $14.9 Million Shadow Lawn $16.0 Million Chesopeian Colony $68.9 Million Harbour Point $21.6 Million Gills Cove $21.0 Million FY 2017 as of January 2016 February 23, 2016 -31- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) The City has eleven (11)properties that are on the Virginia Landmarks Register and receive partial Real Estate tax reduction: Virginia Landmarks Register Partial Real Estate Tax Reduction FY 2016 Tax Reduction $23,665 Hermitage House Keeling House Miller-Masury House/Greystone Manor Pembroke Manor Shirley Hall Thomas Murray House Weblin House Woodhouse House Briarwood Green Hill House Cavalier Hotel *Based upon 50.52 tax rate on historical buildings. Virginia Beach Historic Rehabilitation Partial Real Estate Tax Reduction FY 2016 Tax Reduction $2,345 4300 Calverton Lane February 23, 2016 -32- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) In 2016, 61 buildings received a tax credit for being "energy efficient": Energy Efficient Buildings Partial Real Estate Tax Reduction FY 2016 Program Recipients Tax Reduction Residential Properties 46 $43,268 Commercial Properties 15 151,398 Total 61 $194,666 'Based upon 50.84 tax,at for qualified buildings. • • The City has 1,098 citizens that are 100%Disabled Veteran and Spouses of Members of the Armed Forces Killed in Action that are exempt from Real Estate Taxes: Real Estate Tax Exemption for 100% Disabled Veterans and Spouses of Members of the Armed Forces Killed in Action FiscalYear 2016 Program Recipients Tax Reduction 1,098 $2,987,582 • February 23, 2016 -33- CITY COUNCIL'S BRIEFINGS REAL ESTATE ASSESSMENT (Continued) The City has 6,697 citizens that qualify for Real Estate Tax Exemption/Deferral/Freeze for Senior Citizens and Disabled Persons: Real Estate Tax Exemption/Deferral/Freeze for Senior Citizens & Disabled Persons Fiscal Year 2016 Number of Recipients Tax Reduction 6,697 $10,210,940 Mayor Sessoms expressed his appreciation to Mr. Banagan for his presentation. February 23, 2016 -34- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT 5:36 P.M. Mayor Sessoms welcomed Patti Phillips, Director- Finance. Ms. Phillips expressed her appreciation to City Council for their continued support: I y�x FY16 Budget to Actual Financial /044,40.1., Update as of January 31.2016 Finance E) Bei a cv — :7 `tti(illi • FY16 General Fund keViiniaa • FY16 General Fund Expenditures • Next Steps February 23, 2016 -35- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) The General Fund has budgeted Revenue of$1,043.2 Million and Expenditures of$1,087.9 Million for Fiscal Year 2015-2016: rt)Ol fr(,(i t > SI) . (=t'?ll) r) �,�pr x •{i F, 1113 "yams r ._ .- . ., „law lurance Rangoon t Local (835%of budget) S 8715 S 3958 S(475.7) State.. (14,6%of budget) 152.0 593 (92.7) Federal (1.9%ofbudget) 19.7 11.1 (8.6) Total ev+9ues .41,1414114441$16.7740 atYOper,tlons S 632.2 -1 3$0.$ .$ 3613 Cit'Capital Projects 35.3 t:20.6' 14.7 groom Dperatk:ns 4168 2.104 • 178.8 School CapitalPMects 42 - 17 Total $58879717 .� :. Semi Amos” undedfrom Fund Balance »t Bnalmbra ces/l arnyforwards at 6/30/15 S 101 C(t)' bodlCapI41 Pro)ect¢ 159 Waw PundSupport*SPSA 5.2 .^ ) Adjusted 1Dtpeuditures Trzir Revenues do not come in equally. Revenues are at 44.7%of the estimated Revenue Budget: l'Y1 i,Yl L) Genet-al Tut q1 ec. o(:ipal(=d tt, Historic"l rt,t)ti 1, 2016 YTD ACTUAL•S466.2M ANNUAL BUDGET•S1,043.2M ar% 77.1% 1 - 55.2% 581% 44.7% 41.9% *44.8'. 48.6% er% 42.04E 33.0% 32.2% 7r% 12.5' 4.2% 8.6H/''14.8% 1.4% 9.5% M b8 W da Nen Sec e Pa Mr Mr OW I. -+srrro.a -+-%wrneRev e.agx February 23, 2016 -36- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) FY16 -General Fund Revenues • Still need to collect 55.$%of revenues • Total Revenue follows,the trend line - Includes Tax Relief for Elderly&Disabled of$13.1M - Includes delinquents from prior years • Several items are on a 1-2 month lag • Business License tax(BPOL)due in March 2016-$46.8M • 2nd Real Estate installment due June 5,2016 • Local Annual Personal Property tax due June 5,2016-$89.8M - State PPTRA due July 31,2016.542.5M and August 15,2016-S4.4M One of the most significant Revenues for the City is Real Estate which is at 51.5%of Budget: Real Estate Revenues Portion Oilly January 31, 2009--2016 nu a nIn..r- BUDGET '$474.8 $453.5 $468.0 E4374 $423.1 $441.0 5425.2 5441.7 i4a5 eat 51.7% 52.1. 52.0% 52.0% 52.0% 52.1% 52.1% 51 5% • 1 X8200»... $ .5 41.5 7.3 18.8 3 _ 5 31.0 $141.1-4ox _ r 2m0- 20% •100 0 • cY0O(* F1P:2010 80.2011 PO 012:. 802015 {02014, PT0015 ET 2015 544 244 1844448 1!4821) (04.024' W0.0248! 4880244 408424'1 431.5246 "4AmW 0alx2an• oYTD •••.%of Tow `Total citywide Budget of SS28.3M February 23, 2016 -37- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) Pr. ,octal 1t01-c 1 e 1,ts, s (ea(ltltl,-, Mc! r; :1 Niii 8100 $90.9 $89.8 BUDGET $78.7 fox $73.7 $74.7 $65.9 M% " 32.2%40 .. 27.9% 801 Ta N 21.6' .21.9% 22.0% 202% f41 20.5 20.0 18.2 '"a no M FY8i1 FY tint OY.815 x$Y8118 $086/6 1Ye1N aa�Actuai Cdlaclloa. cOTD �%of Totai� General Sales Tax is up 1.2 2%from this time last year: (1c ,avt tl Sala s l t+.t,� BUDGET 6.2%Up from FY15 660 $58.2 $59.8 $53.4 $51.7 $55.0 $56.4 fax 616 I 51.6% 51.1% 14% 51.9% 513% 52.5%" 830 000 HHhIi :' fib; M 6Y. .'/Y Bit Malta q'8015 Pi 010 0Y 886 6Y ow .. ...Actual Collections a=YTD %of Total February 23, 2016 -38- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) The Utility Tax is an extremely stable Revenue Source: € a t .1. s BUDGET $25.4 S . $25.1 $25.3 $25.2 $25.6 618 557% 52.2% 51.1% 985 501%... ... ..... 50.3%.-.-. 45.3% 48.3% M " I .0 11.8 A baa. 1f y „.-. ,yap 'Yon n•I ,':..i 1<Y3It$ ,--, ' 2114. x 11v***' , aa�Aotutl CoO.otlo.w ®YTD %of Total Telecommunication Taxes continue to decline: .1eicc11T1111lunications. «ikf'ti l a n zi s-y 31, :1(111 - 2016 NIB in 19.8%Down 00.11F/15 I DM $19.7 $20.3 519.5tax BUDGET 518.7 818.1 88.2 t 44.7% 55% d{15-- 42.2% 41.8% 42.1% 42.1% !f 39.2% 1- 1 58.8 88.6 88.2 $7.9 ii 3104M 87.6 $7.1 M, MI l . 1 /Y2911 tram1 PY9911 F88816 PYNH '14'0111 �AOto&Collwtbro OYTD %of Total February 23, 2016 -39- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) The City continues to do well with this Tax which is a good sign that the Resort Area and hotels are doing well overall: fj 3 l.'!.. 1 Ilia{ t "' D`3t .U'gY laa:,.d,:v. �5•h..'aTa9M' 175% . 193%Up ham FY"I BUDGET $6.2 $6.3 tsox H ...$5.8 .$5.9 $5.5 $5.4 5.1 1n% .5 ...5 :2 .2 r 1111E R iii RI t" pa: iR fl.. _ >.:; 2614 *.y` *tali WMii.4 5% L'.—;,,,'of ff 1068 .. ee�Aetuel Collection. ®YTD %of Tot l,.u,1aa, ;`s1, 2(}11 - 202(> . ...............� BUDGET ale- I g.3%up from FYle[ $28.2 $28.4 1w% $25.6 $26.3 $26.3 $14- $24.2 122%$22.0 19.8 20.0 20.7 18.3 18.2 lee% + 76AA e/= 77.V% 4/e.. I,sa - Talc 1 V st OM 860 Hot el Room Taves 2%ASets22O General Fund-2% TIP-5% «,. + TAP-1%FN per room night �% BendDrld6e-et per room night CBD TIF•$500K ennue0y I I , 0 ,I I . 1 e% PY1e11 'P1 L12 PY26fe P116/4 .al I -P116N r ee�Actual Collections t=YTD ... February Tobi February 23, 2016 -40- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) Restaurant Meal Taxes are up 6%from this time last year: I €I°\ SiciT1 M 1from%Up from FY15 I _.. 638.2 BUDGET36.7 $35.1 $36.2 8'3%$32.3 $34.0 • _ ........... 60.7% 80.0% 62.7% ' 60.2% 59.9% 80.4•/. 24.3 ar 1: 11mfb . 3 Y tib.' PYastIM i Pya01a 7o -.tt'146411446" k• Mu b._4111 ' . - aMurcaNatlem� ®YTD %ofTdel ( + " ,' j.nithiryr.i 1, 1'01 I - 2t11€: Viii t $ree ~ Flaa ,eox 16A%Up from FY15 I BUDGET $59.7.. $60.8 $55.3so 857.0 550.6 553.5 tox Ile I 60.5% 62.7% 60.2% 59.6% 80.2% X0.2% I 36.0 30.4 i.-.. Ip IN Illa+c 3 MT.2..5.5%Alloo.tlon >< too MOB General Fund-3.5% TIP-1.06% TAP-0.5% lie - Open lmodsp.o.-0.22% al-0.22% Mud ME ® f% 'vast, '"Tasty PT tett'. py111/1 pyastt , '!TION February 23, 2016 -41- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) S Luilip. 1 s fit 1. tt''S Y 11!'"1.11 11[t. N . . . z ,` 1 $ • Real Estate Taxes S 468.0r uS 241.1 51.5 % Personal Property Taus 89.8 18.2 20.2 Pers.Prop.Tax Relief Act 53.4 6.5 12.2 General Sales Tax 59.8 31.4 52.5 Utility Taus 25.6 11.8 46.3 Telecommrnications Taus 18.3 7.1 39.2 Business Licenses 46.9 2.8 6.0 • Hotel Taxes 6.3 5.0 79.4 • Restaurant Taus 38.7 24.3 62.7 • Cigarette Taus 11.6 4.7 40.4 Human Services 28.3 13.4 47.3 Other Charge for Services 17.0 9.1 53.5 Other Local Revenues 44.5 19.7 44.3 ,.,,•` Corrmunweahh-Maintenance of Roads 45.9 23.5 51.2 , Connnonwcahh-Human Services 30.0 17.3 57.7 • Comm�nwealth-Other State Revenues 22.7 12.0 52.9 •• • t edeml Revenues 19.6 11.1 56.7 • Transfers from Other Funds 16.8 7.2 42.7 15•043.2dS 661 44.7 % •GF p•r0on only ••%doee not l.rlude PPTRA•,rtto• ti Year-to-Date Expenditures are at 58%of Budget: .-%, -16 - 1#_`JD (,tilt t Ai P!ttttt l:k,rf tit itfrs a -, 1/4. tot-Tat c(i t11 Histol o. ril f tit. ,ri j 11. :.1, `.0I is , Iiiii YTD ACTUAL•9631.2M 91.7. ANNUAL BUDGET•91,087.9M 83.8% NM 75.6% , 68.0% 60.2% N%, ".e 52.74'0// 58.0% 1 44.6% 50.7% F 1 28.4',4.5% 20.3% 27.3% 0% 112.1'. 19.7% 11.8% i d AriS S. Oct 11.. Dec w Tee Mir Arc IMT an - _ -.o-F]ye•ditw Trend +�44 of FM.Fa90.4t February 23, 2016 -42- CITY MANAGER'S BRIEFING INTERIM FINANCIAL STATEMENT (Continued) q� i? 6 f'"t C`r '.;re.t� '°' ?: 4l.�pa.a;.s .,E. s -t.' . '▪ lbtaiatan ` $631.2M,or :.' o . • , • Budget General Food Expenditures by Type Jerome,31,2016 - .. It'DA haYF, R. VM6M SaYrirs 5 271,229,927 S 151,732,955 5 119,496,972 Fringe Benefits 101,882,552 55,003,551 46,879,001 Operatog Expenses 157,323,411 112,318,945 45004,466 CapialOWhy 7,037,264 6,352,059 685,205 Leases,I4 Sinrhres&105 n veneerer 4,758,335 3,133141 1,625.194 Debt Service 49,682,686 19,142,268 30,540,418 Transfers to Schools 420,402,658 239,862,366 180,540,292 Transfers k,CH' 35287,759 20 596174 14 01585 OI TrarsEts 8'Sheriff 20,556133 II,952,408 8,603,725 Tra®Ers 5,Parks and lice 4.699,961 2,741,651 1,958,312 +9 Transfers to Waste Management5,166,556 3,013,824 2,152,732 Transfers ro Mutm s5,l Ttamporlat5 5 5,771,212 3,366,540 2,404,672 TnmErsm Other Areas 2,149,148 2007,872 141,276 Reserve 6r Contigeaei:, 1,984,206 . 1,984,206 ,� y Total ExpeMdmes by Type 5 1,087931,810 5 631,223,754 5 456,708,056 Percent of Total 100.0% 58.0% 42.0% • February Interim Mar.22,2016 • Proposed FY17 Budget Mar.22,2016 • Adopted FY17 Budget May 10,2016 Mayor Sessoms thanked Ms. Phillips and the entire department for all of their hard work. February 23, 2016 -43- ADD ON Councilman Davenport advised he will be bringing the attached Ordinance for City Council to consider at the March 15, 2016, Formal Session. February 23, 2016 REQUESTED BY COUNCILMEMBER DAVENPORT AN ORDINANCE TO ADD SECTION 5-549 TO THE CITY CODE PERTAINING TO RESTRICTIONS ON PET SHOP SALES OF DOGS SECTIONS ADDED: § 5-549 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1 That Section 5-549 is hereby added to the Code of the City of Virginia Beach, 2 Virginia, and ordained to read as follows: 3 Sec. 5-549. Pet shops; procurement of dogs; penalty 4 5 A. A pet shop shall sell or offer for adoption a dog procured only from a humane 6 society or private or public animal shelter as those terms are defined in Virginia 7 Code § 3.2-6500 or from a person who has not received from the U.S. 8 Department of Agriculture, pursuant to enforcement of the federal Animal Welfare 9 Act (7 U.S.C. § 2131 et seq.) or regulations adopted thereunder, (i) a citation for 10 a direct violation or citations for three or more indirect violations for at least two 11 years prior to the procurement of the dog or (ii) two consecutive citations for no 12 access to the facility prior to the procurement of the dog. 13 B. It shall be unlawful for any commercial dog breeder who is not licensed by the 14 U.S. Department of Agriculture pursuant to the federal Animal Welfare Act (7 15 U.S.C. § 2131 et seq.) or regulations adopted thereunder to sell any dog to a pet 16 shop. 17 C. A pet shop shall retain records verifying compliance with this section for a 18 minimum of two years after the disposition of any dog. 19 D. Any person violating any provision of this section is guilty of a Class 1 20 misdemeanor for each dog sold or offered for sale. Adopted by the City Council of the City of Virginia Beach, Virginia, on this day of , 2016. APPROVED AS TO CONTENT: APPROVED AS TO LEGAL SUFFICIENCY: Police Department City Attorney's Office CA13569 R-1 February 12, 2016 -44- ADJOURNMENT Mayor William D. Sessoms,Jr., DECLARED the City Council Meeting ADJOURNED at 5:46 P.M. 1.,,,,.. .A.,,_AdIP manda m ey-Birnes, C Chief Deputy City Clerk R, Hodges Fraser, MMC City Clerk February 23, 2016