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SEPTEMBER 13, 2016 WORKSHOP MINUTES -1- let" . V Ittilea*Lji 50:401. a°f OUR 111.1) VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia September 13, 2016 Mayor William D. Sessoms, Jr., called to order the CITY COUNCIL'S WORKSHOP in the City Council Conference Room, Tuesday, September 13, 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 Mayor Sessoms advised there will be no Special Formal Session today September 13, 2016 -2- ADD ON Mayor Sessoms applauded the School System and the United States Navy for hosting 5,400 VBCPS 5`h Graders on Friday, September 9, 2016, at the 25t Annual NAS Oceana Air Show. This premier field trip, included conversations with STEM professionals, hands-on interactive displays and, of course, a performance by the Blue Angels. September 13, 2016 Ar -3- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS 4:01 P.M. Mayor Sessoms welcomed Andrew Friedman and Melissa Jones, Virginia Center for Housing Research — Virginia Tech. Mr. Friedman expressed his appreciation to City Council for their continued support and advised today's presentation is in response to one of the City Council's Priorities, "The Aging Housing Stock Study: Virginia Beach Housing: Needs and Market Analysis Re-investment Strategy Virginia Center for Housing Research,Virginia Tech:Mel Jones,Spencer Shanholtz czb,LLC:Charles Buki,Karen Beck-Pooley ■ ■ X czb Mrs.Jones provided the components of the Study, essentially, a "supply and demand"study: Components of the Study • Housing Needs and Market Analysis • Housing supply:age,type,value/rent/affordability,size and location. • Housing needs and demand:income,family type,number of household members, households with children,seniors,millennials,people with disabilities,etc. • Market dynamics:building trends and absorption,home sales,vacancy rates,and demand projections. • Housing Re-investment Study • Neighborhood-level analysis of housing conditions and markets. • Analysis of information from key informants:City staff,realtors,developers,property managers,etc. • Analysis of plans,policies,practices and regulations. • Strategy development and recommendations. V 16 September 13, 2016 -4- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) Below is the list of the Data Resources to be used in conducting the Study: Data • Local data • Sales data • Real-estate assessment data • Building permit data • Publicly available data • U.S.Census,American Community Survey data • U.S.Census,Survey of Construction data • U.S. Bureau of Labor Statistics workforce data • Focus group, interview and survey data • Case-studies 0,111 The Study will include a robust stakeholder engagement: Stakeholder Engagement • City Staff • Virginia Beach Residents • Housing&Neighborhood Preservation • Public Meeting Focus Groups • Planning&SGA Office • 37 in-person attendees • Code Enforcement • 30+online participants • Management Services • Survey • Economic Development • 424 respondents • Local Experts • Realtors • Property Managers • Builders/developers • BEACH Governing Board • Workforce Housing Advisory Board V September 13, 2016 -5- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) Survey and Focus Group Topical Trends • "Affordability for all" • 71%of current respondents think that yes, housing affordability is an issue • Virginia Beach is a good place to live with very good schools • 92%think schools profoundly affect housing choice/price • 68%think Virginia Beach is getting better or at least the same as when they moved into their most recent home • 69%think upkeep standards near their home are at least the same, if not better,than when they moved into their most recent home 0,111 Below is the percent change in population and households from 2005-2014: Population and Household Trends Percent Change in Population and Households Sowo,:VC11R labol4Ifon of 2005.2014*051-Way[ulmatoc,lade S1101 0.06 0.05 0.04 0.03 0.02 0.01 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • —Total Population —Total Households �® 6 September 13, 2016 -6- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) This graph provides the population and household trends by age demographic. Almost 20%of Millennials residing in the City has an active-duty military member listed as "head of household" Population and Household Trends 2014 Change 2005- g%Chan e 2014 • Virginia Beach is young, Total Population 451,227 22,388 5.2% compared to the region and <18 102,929 -12,690 -11.0% the rest of the state 18-34(Millennials) 120,938 21,090 21.1% • Virginia Beach is attractive 35-49(Generation X) 87,139 -19,196 -18.1% to Baby Boomers,but less 50-69(Baby Boomers) 104,367 24,013 29.9% so to households headed by >70 35,854 9,171 34.4% people 35-49. Total Households 167,039 5,371 3.3% • Virginia Beach is aging as 18-34(Millennials) 40,229 4,194 11.6% Baby Boomers get older, 35-49(Generation X) 46,536 -13,207 -22.1% and households live 50-69(Baby Boomers) 57,748 9,942 20.8% independently longer. ( � >70 22,496 4,448 24.6% V PI This graph provides the change of median of home sale prices from 2005-2015. In comparing to the Nation, the City did pretty well during the Recession: Housing Market Indicators: Home-sale Prices Percent Change in Median Sale Price,Base Year=2005 S.,,. V(IlR tabulateon,olXeall,lale Inlwn,alon Network.In,and National Assoc..,of N•,4110,, 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 —Virginia Beach(all sales) —U.S.(existing sales) 8 czb September 13, 2016 s.r -7- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) This graph provides the annual home sale in the City from 2005-2015: Housing Market Indicators: Home Sales Annual Home Sales in the City of Virginia Beach Single-family and Condos Source:VCHR Tabulation of Real Estate Information Network,Inc.Data 9,000 8,500 8,000 7,500 7,000 6,500 6,000 5,500 5,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Cir)10' - This graph provides the units added annually to the housing stock from 2005-2015. The number of multifamily units(apartments) is in line with the national trend: Housing Market Indicators: Building Units Added Annually by Type ‘nam,(rty of VII,Inu Beal,Beal(Male Attettn,a Annual Roport,I Y 01]and(Y)011 2.500 • Household formation/in-migration slowed between 2010 and 2014 2,000 - - ---- - • Builder confidence and access to credit for SF development remains low nationally 1,500 -- 1,000 soo 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 •• ® •Single-family and Condo •Apartment •Duplex 10 September 13, 2016 -8- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) The City has a strong market that did well during the Recession: Implications for Virginia Beach • A strong market has persisted through the recession in part because of the • Large,strong middle class • Military investment • Good City management • Market strength may threaten the city's green line • Simultaneously,shifts in demand may threaten the market(more to come). The City has a housing aging stock with more than 50%being built between 1970 and 1990. The "ranch- style"home is becoming less desirable for most Millennials: 2011 or later Before 1950 3% 2% Housing Stock 195a 2000.2009 1959 10% I 7%,/ i 1960.1969, Housing Stock by Year-built(Age) 1990-1999 14 Sour<c'.(rlYof Vnp�i,B<arA+.,II+I, An.,.,,Annud R,s,.lf,l,IflU.,,Ih,uH 12,4 50,000 46,955 - - 45,000 • 1970-1979 40,000 '.'198•0•4989'.'.'. 19% 35,000 30,000 27,824 25,000 20,000 19,565 17,210 15,000 14,916 9,829 10,000 5,000 2,366 , 3,650 Before 1950, 1950-1959, 1960-1969, 1970.1979, 1980-1989, 1990-1999, 2000-2009, 2010 or later, (66.years old)(57-67 yrs old)(47-58 yrs old)(37-48 yrs old)(27-38 yrs old)(17-28 yrs old)(7-16 yrs old)(6 or fewer yrs :)® old) 12 September 13, 2016 -9- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) Houses built in the 1960s and 1970s are somewhat "stale". There is a "mismatch" with what the Baby Boomers wanted when purchasing homes and what the Millennials are looking for in their new home: Housing Re-investment Market Summary • A large percentage of the housing stock that was very marketable in the 1960s and 1970s is somewhat `stale"today,leaving a number of areas simultaneously vulnerable to a downturn and ripe with opportunities for re-investment. • From 1965-1995 a large supply of single-family homes on large lots was ideal for a large cohort of middle-class Boomer buyers. • Today that stock has become a high-risk mismatch,since an even larger generation of Millennials are less interested in the tens of thousands 50-year-old ranch houses and 30-year-old townhomes that dominate so much of Virginia Beach. Policy Opportunity • Refreshing aging,stale neighborhoods while increasing density in Strategic Growth Areas could raise market values and create opportunities to assist current residents as well as produce more affordable housing and housing that is a.sealing to Millennials and residents planning to age in Virginia Beach. czb This graph provides the monthly Median Costs for homeowners in the City, including mortgage and taxes is $1,746: Owner Costs Housing Units by Owner Costs Source:2014 ACS l.year estimates,Table 825094 30000 29,53 25000 24,235 Median owner costs for owners 20,956 20000 15000 with a Mortgage: $1,746/mo. 10000 5000 3,257 4,299 5,127 4,320 4,010 3,329 4,842 p 17 . , I , , . 111 Less $100 to $200 to $300 to $40010 $500 to $600 to $700 to $800 to $900 to $1,000 $1,500 $2,000 than $199 $299 $399 $499 $599 $699 $799 $899 $999 to$1,499 to$1,999 or more $100 Annual/ $611 510K 514K 518K/ 5228/ 52611/ 53011/ 53411/ 5388/ 55011/ 57011/ Hourly $9 $11 $13 $15 $17 $19 $25 $35 September 13, 2016 -10- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) This graph provides the monthly Median Costs for renters in the City is $1,200. Interesting, 90% of renters pay more than $800 per month for housing: Rents Units by Gross Monthly Rent Source:2014 ACS 1-year estimates.Table 625063 20000 18000 17,724 16000 14000 Median Rent: 12000 $1,200/mo. 10.774 10,542 10000 8000 7,140 6000 4,892 4000 3,312 20000 _ • • , , I I 5150 to $300 to $450 to $600 to $700 to 5800 to $900 to $1,000 $1,250 $1,500 52,000 5299 5449 $599 $699 $799 $899 $999 to$1,249 to$1,499 to$1,999 or more Annual/ $9K $16K/ $21K/ 526K/ 530K/ $346/ 538K/ $456/ $55K/ $70K/ Hourly $8 $10.50 $13 $15 $17 $19 $22.50 $27.50 $35 This graph provides the top ten (10) occupations in the City. Unfortunately, eight of the ten cannot afford the median monthly rent of$1,200: Housing Affordability: Selected Occupations Top 10 Occupations by Employment,Virginia Beach MSA Occupation Employment Median Median Annual Affordable • With median house prices Wage Earnings Housing Cost Cashiers 22,410 $8.80 $18,300 11$457/mo. above$260,000 and median Combined Food Preparation and 21,570 $8.86 $18,420 !1$460/mo. gross rent more than Serving Workers Including Fast Food $1,200,Virginia Beach is Retail Salespersons 28,580 $9.47 $19,700 II$492/mo. roughly a$22/hr housing Waiters and Waitresses 13,560 $10.42 $21,680 !1$542/mo. market for renters and a Janitors and Cleaners Except Maids 11,870 $10.57 $21,990 II$549/mo. $38/hr market for buyers. and Housekeeping Cleaners • Stock Clerks and Order Fillers 11,500 $11.31 523,530 !!$588/rtro. A large portion of the Office Clerks General 16,540 $13.56 $28,200 !5705/mo. otherwise diverse Virginia Customer Service Representatives 12,960Beach economy is tourist p $13.94 529,000 I$725/mo. Registered Nurses 13,700 $29.50 $61,350 $1,533/mo. based,heavily reliant on jobs General and Operations Managers 9,190 $50.70 5105,460 $2,636/mo. that pay less than$10/hr. • 8 out of top 10 occupations,designated by at least one"I,"cannot afford the median rent($1,200)in Virginia Beach,even when earning in the 90th percentile. pirfir,• Employees in occupations designated by"U",earning at the median could not afford the median rent if 4.:;„/ ..tt�,aass844 shared with another person with equivalent earnings. September 13, 2016 -11- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) According to HUD, households making less than 80%if the Area Median Income(AMI)are considered "low income". 32%of households in the City are considered "low income"and more than 30%of those are considered "severely cost-burdened": Housing Affordability: Cost Burden Housing Cost Burden by Income Level Source.VCHR Tabulation of 2014 ODMS Data 60,000 • Households making less than 32%of all Households 80%of Area Median Income (AM!)are considered low 50,000 income.2016 HUD limit for 80% of AMI is 40,000 • $39,500 for 1 person 20%of all Households • $56,400 for a family of 4 pp 30,000 • Households with income 20,000 between 80 and 100%of AMI are considered moderate 10,000 income.2016 HUD limit for 100%of AMI is - • $49,350 for 1 person Low Income Moderate Income • $70,500 for a family of 4 :: ® ■Severly Cost-burdened is Cost-burdened ■Not Cost Burdend The Housing Affordability Gap is calculated by the households that need more "affordable housing" minus the vacant, affordable units: Housing Affordability Gap Housing Affordability Gap=Households that need more affordable housing minus(-)vacant,affordable units • Gap among renters 80%of AMI or less: 20,965 units • Gap among owners 100%of AMI or less: 20,810 units • Limited vacant,available stock • Limited total stock affordable to those with the lowest incomes • Higher income households compete more effectively for housing glower income households are financially strained,cost `.�i burdened v September 13, 2016 --- -- I -12- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) This graph provides an overview of the "Vulnerable Populations"in the City: Vulnerable Populations Median Income by Household Type Source:VCHR Tabulation of 2014,1-year RUMS Data $120,000 $100,000 "3,279 $98,422 $90,859 $80,000 Median Household 562,522 Income:$70,388 $60,000 $50,421 $40,000I $36,303 $22/hr $34,286 $34,992 $32,068 $20,000 $0 wrr.ararw4 u,.rr�or.k, m rx::::: "li.�c.w.r rrrara" s.rekanz' 'Z',',r sorl" ,..rM,w>•,":,." w""L'.' (,v?./ MoureMMr =orw/ x�u MwlrY, wbrr Mr�Md.h h. I I uvhdO.sbne wuxMldr 0 Margin Summary • Tens of thousands of low income working households are financially stressed due to a mismatch between their wages and the cost of housing • Many homeowners own aging housing that will be expensive to upgrade and refresh •The City has opportunities to simultaneously address these two issues due to its strong middle class and strong financial position • Policy options and opportunities will be presented at the next stage of the study September 13, 2016 -13- CITY COUNCIL'S BRIEFINGS HOUSING STUDY PROGRESS (Continued) Below are the next steps as well as the timeline for the Study: Next Steps & Timeline • September: • Refining analysis, • continued report drafting, • developing recommendations. • October: Finalization of analysis, recommendations,full draft of report delivered. • November: Draft report finalized Sources • 2014 American Community Survey 1-year Estimates, Public Use Microdata and published tables • 2009-2013 Consolidated Housing Affordability Strategy(CHAS) 5-year Estimates • 2014&2015 Bureau of Labor Statistics data for the Virginia Beach MSA • Hampton Roads Association of Realtors MLS data for the City of Virginia Beach • City of Virginia Beach building permit data • City of Virginia Beach Real Estate Assessor's Annual Reports Mayor Sessoms expressed his appreciation to Mrs. Jones and Mr. Friedman for the informative presentation. September 13, 2016 -14- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT 4:40 P.M. Mayor Sessoms welcomed Lyndon Remias, City Auditor. Mr. Remias expressed his appreciation to City Council for their continued support, as well as numerous staff members for their assistance in conducting the Audit. The three(3) basic primary objectives of the Audit were: 1. have the expenditures spent to date been fully captured; 2. identify and verify supporting documents supporting expenditures to-date; and, 3. does the City have the effective reporting tools in place to readily capture and report expenditures, ensuring transparency and accountability. Mr. Remias introduced Chris Ford,Deputy City Auditor: WCity of Virginia Beach City Auditor Results of Light Rail Review City Council Presentation Tuesday,September 13,2016 Lyndon S.Remias,City Auditor Chris Ford,Deputy City Auditor Mr. Ford conducted the Audit and encouraged any interested party to read the entire Audit Report, but especially Appendix 1 which provides both the Commonwealth's and the City's expenditures. Below is the background of the Virginia Beach Transit Extension Project: Virginia Beach Transit Extension Project Background • Project expenditures to date related to the following three phases: 1. Acquisition of former Norfolk Southern Right-of-Way 2. PPEA unsolicited proposal process—Terminated in May 2014 3. Light rail project feasibility analysis for delivering transit extension as City and State capital project from May 2014—present Note: Audit captures expenditures through June 30,2016 li. c +a � September 13, 2016 -15- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) Virginia Beach Transit Extension Project Background (continued) • Public Private Education Facility and Infrastructure Act(PPEA)of 2002- legislative framework that encourages the private sector to propose alternative project delivery methods for qualifying projects that may deliver the project in a more timely or cost-effective manner. • On April 2,2013,the City received an unsolicited PPEA proposal from a corporate group to extend the Tide Light Rail into Virginia Beach. In June of 2013,the City Council,by resolution,directed the City Manager to accept the unsolicited proposal. • Under the Act,proposals may be invited through solicitation or they may be considered when delivered by a private entity on an unsolicited basis.The City received one other light rail proposal and one maglev proposal. • PPEA process terminated by the City in May 2014 in part due to the Commonwealth of Virginia recommending a more competitive procurement process for its$155M project funding. Below are the specifics for Objective#1 of the Audit: Virginia Beach Transit Extension Project Objective #1 Identify the various CIP projects and general fund budget units where Light Rail related expenditures have been recorded since the commencement of the project through June 30, 2016 and where future light rail expenditures will be recorded should the decision be made to continue with the construction phase of the project. September 13, 2016 -16- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) These expenditures were captured: Virginia Beach Transit Extension Project Results The following are where expenditures are being captured: 1. Purchase of the Norfolk Southern railroad line from Newtown Road to Birdneck Road in Virginia Beach in September of 2009: • CIP Project#2301- provides for acquisition of the former Norfolk Southern Right-of-Way • CIP Project#2186-provides for the physical survey of the Norfolk Southern Right-of-Way acquisition 2. Transit Corridor Feasibility Analysis: • CIP Project#9011-provides for a light rail project feasibility analysis for delivering The Tide extension as a City and State capital project in Virginia Beach Virginia Beach Transit Extension Project 3. Consultant Costs to Review and Analyze the three(3)PPEA Proposals received to extend Light Rail. — City Council adopted two ordinances;the first on November 12,2013, the second on April 8,2014 as a continuation to retain three(3) consultants,one each for engineering,legal,and financial assistance in reviewing the three(3)PPEA proposals received to extend light rail. The following General Fund accounts for the consultant costs: • 002.10510.603109-Provides for the engineering consultant,Kimley-Horn and Associates,to assist in the review of the three(3)PPEA proposals. • 002.03010.603102- Provides for the legal consultant, Nossaman LLP, to assist in the review of the three(3)PPEA proposals. • 002.04030.603120 - Provides for the financial consultant, Public Resources Advisory Group(PRAG),to assist in the review of the three(3) PPEA proposals. September 13, 2016 i w -17- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) Virginia Beach Transit Extension Project 4. Main Light Rail Project and the two(2)related projects providing for the design/build and completion of the project should it be approved: • CIP Project#2092-This is the main CIP project,which will provide for the costs of the design/build project to extend light rail from its terminus at Newtown Station/Norfolk—Virginia Beach City line,east to the Town Center/Constitution Drive area. • CIP Project#2093-A companion project to 2092,this project funds 12 transit buses to support enhanced public transportation throughout the City in addition to feeding the Tide light rail system. • CIP Project#2108-This project will fund the design,construction, right-of-way acquisition(if needed)and site furnishings required to create a shared-use pathway within/along the former Norfolk Southern right-of-way in conjunction with the light rail extension project to provide additional modes of transportation. Below are the specifics for Objective#2 of the Audit: Virginia Beach Transit Extension Project Objective #2 Identify the amounts and purpose of the light rail expenditures paid through June 30, 2016 by tracing expenditures to supporting documentation ex. Invoices, purchase orders, work orders, closing statements, and contracts. September 13, 2016 -18- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) Supporting documentation of the expenditures was verified: Virginia Beach Transit Extension Project Results The following charts identify the amounts and purpose of the light rail expenditures paid through June 30, 2016. • We were able to trace expenditures to supporting documentation (i.e. invoices, purchase orders, work orders, closing statements, and contracts). Through June 30, 2016, $16,331,979 of allocated funds has been expended: Allocation of Local Light Rail Expenditures Grand Total$16,331,979 $16,000,000 $15,462,564 $14,000,000 - $12,000,000 ---- $10,000,000 - $8,000,000 • $6,000,000 -- $4,000,000 — — $2,000,000 - -- $0 - $201536 $463'837 $68,115 $115,927 Land Acquisition Feasibility PPEA Prosposal Light Rail Office Preliminary A&E Analysis Consultants Expenses Analysis September 13, 2016 "P" t -19- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) Land Acquisition Expenditures $15,462,564 $16,000,000 $15,045,171 $14,000,000 - $12,000,000 — $10,000,000 •— $8,000,000 — $6,000,000 -- - $4,000,000 $2,000,000 r—--- -.- -- $417,393 Norfolk Southern Land Survey NFK Southern Land Acquisition Feasibility Analysis Expenditures $201,537 $100,000 $90,000 ' - $80,000 $70,000 $60,000 $50,000 - - - $49e295 $40,000 $40.000 $30,000 ; ■ M $20,000 ' $12,795 $10,000 , $507 Pembroke Station Virginia Transportation Standard Pools ITS Dept Transportation Other Eiden Jon Study Infrastructure Bank k,dkative Bond Smart Cities CM Bene Applkation Batin,/Consultation Submission • September 13, 2016 -20- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) PPEA Proposal Evaluation Expenditures $463,837 $450,000 $406,301 $400,000 - —-- — $350,000 - - $300,000 - --_ - $250,000 -- $200,000 $150,000 $100,000 $50,608 $50,000 $6,175 $753 $0 Public Works City Attorney Finance Consulting PPEA Solicitation Consultant Fees Consultant Fees Fees Light Rail Office Expenditures $88,115 $50,000 $47,583 $40,000 $31,956 _ 11 $30,000 - $20,000 — • $10,000 $8.526-- -- $0 Light Rall Office Lease(4801 Furniture&Fixtures for Office Technology Costs for Light Rail Columbus) Office September 13, 2016 -21- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) Preliminary A&E Expenditures $115,927 $60,000 - $51,177 $4s,468 $50,000 $40,000 11 $30,000 -- - $20,000 $14,633 $10,000 $1,649 $0 — Architectural and Legal Expenses Other(Letter of General Engineering Engineering Interest and Misc) and Consulting Below are the specifics for Objective#3 of the Audit: Virginia Beach Transit Extension Project Objective #3 Identify/develop a reporting mechanism whereby City Council, City Management, and interested outside parties can be informed on the financial progress of Light Rail project should the decision be made to pursue construction. Results • Department of Finance has developed,through the report writing tool Discoverer,a report titled "Light Rail Expenditures" that queries and reports all light rail expenditures by CIP project and expenditure type. • Besides some minor items all expenditures were properly captured by Finance. September 13, 2016 -22- CITY COUNCIL'S BRIEFINGS LIGHT RAIL EXPENDITURES AUDIT (Continued) The Finance Department shared an excellent reporting tool they developed. This tool will accurately report the financial progress of the project should the decision be made to proceed with the construction: Virginia Beach Transit Extension Project Conclusion Based upon the results of our procedures we determined: • Expenditures are being fully captured. • Supporting documentation exist to support expenditures. — invoices,purchase orders,work orders,closing statements, and contracts • Finance has effective reporting tools in place to readily capture and report expenditures to provide accountability and transparency to the project. Questions? For further information please contact: Lyndon S.Remias,City Auditor Office of the City Auditor 757-385-5870 Iremias@vbgov.com Visit our website at www.v bgov.co m/c itya u d i to r Mayor Sessoms expressed his appreciation to Mr. Remias, Mr. Ford and the City Staff who assisted in conducting this Audit. September 13, 2016 -23- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update 5:00 P.M. Mayor Sessoms welcomed Greg Johnson, P.E., Water Resources, Public Works. Mr. Johnson expressed his appreciation to City Council for their continued support. Today's presentation provides an overview of the Stormwater Management work currently underway including water quantity/quality studies and the impact of Sea Level Rise on the City's drainage infrastructure: Sea Level Wise - A vibrant future for Virginia Beach Greg Johnson,P.E. = ue Shanda Davenport,PE,CFM,AICP s D wbserr Out mil — Below is the Outline for today's presentation: Outline • Three-pronged approach • Virginia Beach's resiliency stance • Overview of Comprehensive SLR Study September 13, 2016 • -24- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) Water quality/quantity, along with Sea Level Rise, are the three intricate parts of the City's Stormwater Master Plan: Capital Synergized Improvement Stormwater Activities Master Plan Plan Sea Level Water Rise Quality Comp. Study 3 �Isee LevdWiee The City received an inquiry last year from Moody's Bonding Rating Agency: Moody's Questionnaire to VB • Does the existing/future CIP include spending RrviZiewdy's Update/Coastal VA Credit Focus for mitigation or resiliency? • Has your governing body discussed the capital or financial implications of rising sea levels? • Has there been an estimate on potential impacts from rising sea levels or flooding? • Please discuss how flooding has impacted the city's budget and how flood mitigation efforts may impact future budgets? • Have there been any zoning/long-term planning adjustments downtown and along the waterfront to mitigate future flooding impacts? • What is managements current view on the potential impact/vulnerabilities in your community from rising sea levels and a heightened risk of extreme weather events? q \IkeaLLe. el WLe September 13, 2016 -25- CITY MANAGER'S BRIEFING SEA LEVEL RISE-Update (Continued) The City will be here for many years to come and will adapt to changing conditions; however, this requires the City maintain a "Resiliency Viewpoint": ow" Resiliency Viewpoint "Ensure the vibrant future of Virginia Beach" • Engage in Systems Thinking • Achieve Multiple Positive Outcomes • Maintain a Long-Term View iii: • Create an Accurate,Positive Community Image -� " ; OC i-t • Ensure Sustainability j . -. • Create Relationships and Partnerships Vis` •� • Value and Promote Diversity • Be Proactive and prevent problems ___ --%''\. .__.____________, --------------- 5 W-- — This map identifies properties on which the City has received calls or complaints reporting flooding problems since October 2007: Flood --= 1 Complaints "oalt s_Vislinia Beach t°°ks for^" for shore alive ' •B1.Mrr.yprrrty fe•F.rrfrerisGou[�.urOrrq =�' 1 1 giqui..„.: •.e 1 �. _- 6; ligl ,!a Level /r.rise M�3r•...n September 13, 2016 -26- CITY MANAGER'S BRIEFING SEA LEVEL RISE— Update (Continued) The total cost of the Central Resort District Drainage Improvement project is$100-Million: What are the costs? 7-041 Central Resort District ip1111:704.-P; ::-7 Drainage Imp Total Project Cost: i. , /' �1J . .- ' • Study drainage issues and develop •1-,-; + r; altemahve solutions II • Review interim improvements to improve drainage in area around Baltic IlldlIll' ''' Avenue and 21'Street Current Programmed Funding 5300K r------- 7 \Ikea Leveinr--. The total cost of the Eastern Shore Drive Drainage project is$70-Million: What are the costs? 7-151 Eastern Shore Drive Drainage • Drainage study completed July 2012-June 2014 • Interim Project-Under construction 3/2016-122016 • Current Programmed Funding 518.9M • Phases I and II design underway.Phases I and II construction not funded • Phases III and IV not funded El r V. ; Total Project Cost:>$70M • 8 September 13, 2016 -27- CITY MANAGER'S BRIEFING SEA LEVEL RISE— Update (Continued) The total cost of the Windsor Woods Drainage project is$40-Million: What are the costs? 7-028 Windsor Woods Drainage • Drainage improvements to alleviate wide spread repetitive storm water flooding • Tidally influenced • First Phase includes improvements to Roserno?qo;,•-neaFtlubtiouseRoad Presidential Canal and Northgate Ditch(Under Design) • Current Programmed Funding$10.5M r��4 Total Project Cost: > $40M 9 lea The City has challenges relative to the Southern Watershed: Southern Watershed Challenges • Low Lying Terrain E9 44 • Diverse Land Ownership • Lack of Historical • Water Elevation Data • •-• _t • High Groundwater 124 Table 'VA • • Regulatory Floodplain w Cost Estimate not yet available • 1 10 `Edea a lo•••. September 13, 2016 -28- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) Below are the water quality challenges the City face: Water Quality Challenges Compliance Issues u.,,:.,ena:�ge T S a level g Vrec,p Ilenn Reduced rmatment Capac.ty Wale,Quablygegs Df Flemb.1 1stramis R 11 fl Sea.L.evelWW Below is an overview of the Comprehensive Stormwater Master Plan: Comprehensive Stormwater Master Plan • Stormwater management and flood mitigation Little Creek m • Stormwater quality improvement Lynniaven • TMDLs(TN.TP,TSS,bacteria) River Elizahet 4,;• Creek • Regulatory compliance River V I_,-, • NPDES MS4,TMDLs • Sea level rise and tidal surge • Capital improvement planning and funding • North Landing River Back Bay 12 NiBISceLevelrse September 13, 2016 -29- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) Ms. Shanda Davenport, Public Works, provided an overview of the Comprehensive Sea Level Rise/Recurrent Flooding Study: Comprehensive SLR/Recurrent Flooding Study . Flood risk assessment • Adaptation strategy formulation • Policy and Planning tom. • Risk Aggregation • Strategy evaluation • Feasibility • Return on Investment ■ • Watershed-based von plans 111111 r • Policy,Comprehensive Plan • Capital improvement planning and funding 13 Nil ea Lewin:. The Study is currently underway and has three(3)distinct parts: Comprehensive SLR Study Approach 3.Implementation Planning the actions 2.Adaptation Strategies Tailoring the solutions 1.Sea Level Rise/Recurrent Flooding Impacts Defining the problem 14 September 13, 2016 -30- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) The first step is to "define"the problem and a good way to do so is by looking to the past. For example, below is a graph of the water levels at Sewells Point and by projecting forward the Sea Level Rise will be 1 to 1-1/2 feet by the end of the Century: The Problem -n.ewu..�w.�eRe-«»� µ•-- AI Rle 1'lMCf161gRR •'"a,-I. ■uW:'w4R //j i • •,O9 awe axe axe nn 2053 2556 5555 2255 YUf 15 fl Se.Level h*e...WLe AR.. can The City chose the 1- f/foot for more short-term/low-risk projects and 3-foot for the long-term/high-risk projects: Selected Scenarios vs Federal Curves r. .e tore Cr'S.are,ect one- up I MMH.I0 IN .t P v:et re 1Gaupee1, Eva uate or Adaptsve u.Rx�u ca.ac„ —utur. eaa —Ro..r...5r 5 R. —056L6..0.Ree 5 —.044w+Roe l: 3 f -/).- 0 0 2000 2020 2040 2060 2060 2100 2010 2090 20..0 20,0 2000 16 p �NA.•11. fir W.°..... September 13, 2016 -31- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) Below are the City's Sea Level Rise Scenarios: VB SLR Scenarios Time Life Cycle Horizon) SLR Relevance Use Alignment Time Value Period 20.40 &Out Comprehenslwcomes Plan Vulnerablllty assessment Municipal "am t.5 ft Short end o1 Key planning value Planning 2035-2055 Commercial and Basis for evaluation of all Utility life-cycles adaptation strategies CriticalfSecondary vulnerability Utility Inrastructure Infrastructure li( rast a assessment to provide Insight 50-80 into long-term risk Long-term years Transportation Basis for long-term awareness 3.0 ft Infrastructure infrastructure decisions lifecycles 2065-2085 Residential Evaluate cost-effectiveness of Adaptive eUucture Ilfecycloa additional protection for Capacity adaptable resilience strategies 17 Mkta Phase 1 of the Study is the Impact Assessment to determine how the vulnerability will change with increasing flood levels due to Sea Level Rise: Phase 1 : Impact Assessment • How will vulnerability change with • increasing flood levels due to SLR? • Where will we see the flood footprint expand? • How much more frequent will flooding occur? • What assets are vulnerable? " " • How will losses change? " " • How will insurance requirements " change? .a..aKr• �� • What assets are at the highest risk? 8 WISea Level Wise_. September 13, 2016 -32- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) The Study is looking at a range offlooding conditions: Assessment Conditions am • Tidal • Future permanent inundation • Nuisance • Repetitive losses/issues • Storm Surge • Regulatory,disaster scenarios, economics \ I Leve, Below are the Risk Assessment Focus Areas: Risk Assessment Focus Areas: • Shoreline/Land Vulnerability • Building Exposure • Future Development • Stormwater • Public Utilities • Groundwater •Agricultural • Societal zo SAL I.IWi•e September 13, 2016 -33- CITY MANAGER'S BRIEFING SEA LEVEL RISE— Update (Continued) One piece of the Study is an Insurance Economic Analysis: Insurance Economic Analysis • Current Conditions: • Policy/claim concentration in and outside the SFHA • Identify under-insurance issues on current policies in force • Allow estimation of risk estimation • Increased Policy Penetration: • Tools to encourage flood insurance penetration • Prioritize risk mitigation or transference for current assets at risk • Future Conditions 8 Regulatory Changes: • Identify and prioritize mitigation of high risk assets • Changes to insurance liabilities and residual risks • Promotion of increased flood insurance penetration outside existing SFHA • Flood Insurance Affordability: • cost burden of flood insurance to socio-economic vulnerable areas 21 7I elcvelWisc The City is using a FEMA program in determining the Loss Estimation Process: Flood Loss Estimation Process Hazard Data -i;-- :.,,,^ ,—_ Data Model Built Improvement Environment _ a is ' -1 . Perform Assign Depth _� Damage/loss « Damage '�- Estimation Function rj Summarize . Evaluate Results Economic and -' Sodal Impacts 22 \ElIsea t.eselwl.e September 13, 2016 -34- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) The Study considers the Environmental and Economic Diversity in the City: Environmental, Economic Diversity .•,•+wa•^OM m.iy ♦«Mq, nom,.rw.rt NOON•-4 pq.t•..n rq^to E..e p«r.tm tl a...,..1 7.Q67r: ..4,W."re,.matt« ^eiw..rq,es 41411 SI Vrne. 1 ew.n«.w mw•nu; ,1,110 w..''•��rM LISACE .m.roo^.,worm om.n E,ctae.R.'(,S,.'.n.gxvOr«..wri Wa•..M"flC PM..••. !porn Oce..sr r.man o.+:^.• rc cr mq.rd..m. eq,1. nor w• Cer•an, weroa N ..0m•••.r ea wtar n rn...• fon., - 23 .elt .—Ww Phase 2 of the Study is to develop Adaptation Strategies to assess and prioritize a range of strategies through feasibility and performance metrics that incorporate stakeholder input to inform climate adaptation and Resilience Plans across the City's diverse geography: Phase 2: Adaptation Strategies • Objective:Develop,assess and prioritize a range of adaptation strategies through feasibility and performance metrics that incorporate stakeholder input to inform climate adaptation and resilience plans across the City's diverse geography. _ j• giadie • What strategies are needed to address the risk portfolio? efirelln • What policy has to be created or changed? • How can land use be managed? �. • Where do structural solutions make sense? • What's the return on investment? • • What strategies work best? • When should implementation occur? 24 �Sca Level Wise September 13, 2016 -35- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) Below are various Adaptation Tools the City has developed: Adaptation Tools Planning Tools i Uodre Caws e+.w Pw Update nerd Yae.Oon Ran ji Regulatory Tools E.and hOOOat.n BaeM..w.W EwWoerd har..eenr DwgwTrBwrd Bodepea t a.o.d..ElaadYOCe^a Eooae.p Q.eer D..elsreen, B.a.e S.daw.&rev.a BWr.p Co.,vvuarr Even.m Pato-id Retaikee w tad,llrW Mat .. w Maw•McD..c^Ureu00 SI.nen Me.+e. Incentives and Fon .Casa Lral..aW D..etsee+.e BaleRoe.e.e - - , Ilr Cd.bEs.+l Lamm E.•nw W Imes Few _.. 25 The final phase, Phase 3 is Implementation. The objective is to integrate the best performing adaptation strategies in actionable watershed-based climate adaptation and Resilience Plans that include funding and monitoring mechanisms to stimulate follow-on implementation: Phase 3: 0000 Implementation Objective: Integrate the best-performing adaptation ,F„, strategies in actionable watershed-based climate adaptation and resilience plans that include funding and monitoring mechanisms to stimulate follow-on implementation. • How do we move forward with the preferred solutions? • What are the costs and design features? • How do we fund? • What is our action plan for each watershed? • How do we get public buy-in,sponsors.and/or regional support? / \ 26 �I Levet wig. September 13, 2016 -36- CITY MANAGER'S BRIEFING SEA LEVEL RISE—Update (Continued) Outreach - Integration • Engage — Coordinate — Leverage Partners: • HRPDC • ODU/Virginia Sea Grant • Georgetown Climate Center • NOAA ruw,; II Sea { CEI._ !14 f [= 27 1� Sea Level W1 e Below is the Schedule: Milestone Schedul:, haven _ hLinstonc • Risk Portfo"' - ) Objective 1:Strategy Evaluatic n Objective 2:Adapt lion Plans: _ _ I Southern • - Risk Portfolio(In-Kind) • Objective 1:Strateg Evaluation ;';rbjectiv 2:Adaptation Plans Elizabeth River > - Risk Portfolio(In-Kind) Objective 1:Strategy valuation Rimigismiximmimmenia Objective 2:Adaptation Plans tsfront - Risk Portfolio(In-Kind) Objective .Strategy Evaluation Objective 2:Adaptation Plans 1.11.11.111111.1.111.1 —' —_ — — 28 ctive 3:Outreach,Cooed ation,Disseminatio September 13, 2016 -37- CITY MANAGER'S BRIEFING SEA LEVEL RISE— Update (Continued) Questions? a Points of Contact: City of Virginia Beach r- ha Department of Public Works Greg Johnson,P.E. '• 757-385-4131 giohnson(a7vbgov.com Shanda Davenport,P.E.,CFM,AICP 757-385-8439 sdavenpo(a)vbgov.com 29 Mayor Sessoms expressed his appreciation to Mr. Johnson and Ms. Davenport for this very informative presentation. September 13, 2016 -38- ADJOURNMENT Mayor William D. Sessoms,Jr., DECLARED the City Council Meeting ADJOURNED at 5:28 P.M. a da in ey-Barnes,MMC Chief Deputy City Clerk ' th Hodges raser, MMC City Clerk September 13, 2016