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JANUARY 8, 2019 FORMAL SESSION MINUTES Ud +so,F VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia January 8, 2019 Mayor Robert M. Dyer called to order the CITY MANAGER'S BRIEFINGS in in the City Council Conference Room, Tuesday, January 8, 2019, at 3:00 P.M. Council Members Present: Jessica P. Abbott,Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard,Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss Ill 2 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 3:01 P.M. Mayor Dyer welcomed Ronald H. Williams, Jr., Deputy City Manager. Mr. Williams expressed his appreciation to City Council for their continued support: Dome Site Development Term Sheet Virginia Beach City Council Directional Briefing Deputy City Manager Ron Williams January 8, 2019 N/B The next four(4)slides provide the background on the Dome/Wave Project: Resort Strategic Action Plan -� (Adopted 2008) Development Strategies �s • Create great districts with distinctive identities • Improve transit and pedestrian connections between destinations • Create a transition from the resort area to the neighborhoods • Enhance visual access to the Oceanfront • Grow residential • Provide additional higher-quality hotels • Concentrate retail • Cluster office uses near Convention Center and Birdneck .41•4:ti • Continue to focus on achieving a j "YearRound Resort" f 2 January 8, 2019 3 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) VBDA Request for Letter of Qualifications February 8, 2017 Responders were encouraged to demonstrate their ability to transform this site into a family-friendly unique multi-use destination to include features such as: • Multi-block mixed use development • Entertainment concepts • Minimum 3,500 seat live entertainment performance venue • Unique or new to market retail • Unique or new to market authentic restaurants • Residential but not as a primary use • Year-round programming attractive to both locals & tourists Note.Dome Site&Treasurer's Block Parcels Authorized for conveyance to VBDA in 2011 and 2013 respectively ; Venture Waves LLC was selected to develop the Dome/Wave Project in November 2017: Venture Waves LLC - Principal Leadership Disclosures Venture Realty Group WM Jordan Company Venture Realty Group 1, LLC John R. Lawson Venture Waves LLC H2O Investments Donna MacMillan Whitaker Joe LaMontagne Michael A. Culpepper The Costen Companies John L. Gibson, Ill Tim Costen Elizabeth Matulenas Pharrell Williams Matthew Lafler Bishard Development Corp. Steven D. Green Steven W. Bishard Fiona Sadler John K. Bishard Robert A. Deacon 4 January 8, 2019 4 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Venture Waves LLC - Service Disclosures Architect: Oppenheim,Hanbury Construction Contractor: WM Jordan Engineer: WPL,Kimley-Horn Legal: In-House Real Estate Broker: Venture Realty Group,Madison Marquette,CBRE Financing: TBD Property Owner: Virginia Beach United Methodist Church From January to early spring 2018, several public engagement events occurred,where comments, ideas and concerns were validated and incorporated into the development plans: ff. ir r 250 Workshop t - , Attendees ' 2,500 Survey .:, Responses - ' 1 ,400 Written January 2018 Public Engagement Responses Over 30 Civic & qA Stakeholder Meetings • Amu. 1- - 44 January 8, 2019 5 CITY MANAGER'S BRIEFINGS DOME/WA VE PROJECT TERM SHEET ITEM#68774 (Continued) Here are three (3) renderings of the proposed Dome/Wave Project: 4- - 1 ' L.a� y.k lit., la -„� ,?--- � --”' - 7' .. � ,� ,,,..... _-•,,: :_--_-_lia.-►'- 's...y� .fi ir�i e.>'% may'. _ Er. 4 i' ''1 *fiws. l f-i44-.* -- e4am,{ 4*n:; !""4'..;.'r'-'-.-. .,-:.'‘.. -='-'-.-:-,:-..-,..7:- ''',!i--..' ....it - - -''411-741 jT� THEor WAVE 8 January 8, 2019 6 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) I' 0 r � _ ,� �.� ■`mai, ■_.` ,__�I -�: _� _.,�.__ _. __ - 1 H e WAVE 9 Here is an overview of the four(4)studies conducted: Exclusive Dealing Period Feasibility Studies During the Exclusive Dealing Period, Venture and the Authority, determined that equally sharing the expenses for studies and analyses was necessary to evaluate the proper scope and form of development which included: 1. Entertainment Feasibility Study STONE Validated market demand&affirmed recommendations for venue size 'ISITEWORKS 2. Retail Feasibility Study Validated market demand&affirmed recommendations for retail mix 3. Overall Economic Impact Analysis -. Forecast overall economic impact of entire mixed use development 4. Parking Feasibility Study Validated parking demand&recommended total#of spaces '0 January 8, 2019 7 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Here is the 20-Year Fiscal Impact: Fiscal Impact Estimated Tax Revenues - Stabilized Year 1 Real Estate $2,227,400 Sales $ 683,673 Meals $ 2,300,623 20-Year Impact Amusement $ 2,41 1,664 $65 M to General Fund BPOL $ 546,400 $44 M to VB Public Schools Total Annual Taxes $ 8,169,760 —►Distribution of Tax Revenues Amount to TIP $ 2,855,056 Amount to General Fund $ 2,816,508 Amount to Schools $ 1,912,897 Amount to other funds $ 585,299 Total Annual Taxes $ 8,169,760 Source'.Lambert Advisory Economy Impact Analysis The Economic Impact totals$147.5-Million: Economic Impact 3,600 Jobs during construction 2 ,000 Jobs once operating & stabilized $ 147,592 ,000 Total Operating Impact Source'.IMPLAN-Lambert Advisory Economic Impact Analysis 12 January 8, 2019 8 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Here is an overview of the alignment of the Dome/Wave Project with City Principles and Recommendations: Alignment of Financial Principles & Recommendations ✓ Project produces a net positive benefit to the City in 20 years ✓ Project produces enough revenues to cover expenses ✓ Project produces direct revenues to the General Fund and Schools based on current policy and distribution formula ✓ All project related expenses (debt service, incentives)are supported by the TIP Fund ✓Annual Incentive of Tier 2 TDFP& Venture's Tax Revenues Generated for TIP ✓ 10% Return on Cost for Developer 13 Here is an overview of the Tourism Investment Program: Tourism Investment Program (TIP) Fund • FY 1992-93 Council established the Tourism Growth Investment Fund(TGIF) • FY 2001-02 Council established Major Projects Fund • Dedicated revenues for rebuilt Convention Center,Sandler Center and parking lot expansion for Aquarium. • FY 2011-12 Council merged TGIF and Major Projects into TIP Fund Ogen General TIP TAP Space Fund EDIP TOTAL Hotel Tax 5%/$1 1%/$1 - 2% - 8% Restaurant/Meal Tax 1.06% 0.5% 0.44% 3.5% - 5.5% Amusement Tax 10% - - - - 10% Cigarette Tax(per pack) 5¢ - - 54¢ 16¢ 75¢ 14 Notes:Flat rate of$1 per room/night for TAP,Additional$1 per room/night for TIP January 8, 2019 9 CITY MANAGER'S BRIEFINGS DOME/WA VE PROJECT TERM SHEET ITEM#68774 (Continued) Here is the Dome Site Development Process showing construction to begin in 2020: Dome Site Development Process •••.� Approval Approval it.MILerf of \ of Cost \• Public \. Studies \ Term \`.Development` BUILD •� Interview /Preferred / Sharing JEngagement 2/ `/ /Reported / Sheet ,/Agreement / `�•� •/ Developer✓ Studies MAY NOV DEC JAN AUG JAN JUN 2020- 2017 2017 2017 2018 2018 2019 2019 2023 t Is The next several slides provide the key elements of the term sheet, which is attached hereto and made a part of the record: Term Sheet Overview January 8, 2019 10 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Page 1 • Provides overview of development agreement and background of selection process • Provides definition of Term Sheet • An outline of terms • Non-binding agreement • Forms the basis for a transaction to commence negotiation of definitive document for development of the Dome Site 17 Page 2 1. Project Description • Ground lease for 60 years from VBDA for $1.00 per year with two 20-year extensions • Create a leasehold condominium regime • Mixed-use development containing multiple buildings and uses • Adjacent parcels may be considered for part of development Elements of project include: a. Entertainment Venue b. Parking Facilities c. Commercial Facilities d. Residential Facilities e. Streetscapes 18 January 8, 2019 11 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Page 2 (cont'd) 2. Developer Obligation • The Developer will construct all elements of the Project. • All components above are subject to mutual collaborative refinement. • The Developer's construction of the Project shall comply with the City Council's Small Business Enhancement Program. • Developer will acknowledge the City Council's 10% minority subcontractor goal and will work with the City to identify and use minority subcontractors to the extent commercially reasonable. 19 Page 3 3. City/Authority Participation a. Parking Facilities • Design, development and construction will be purchased from Developer by Authority on a pay as-you-go basis. • Authority will pay actual costs based on a guaranteed maximum price contract proposal obtained through a mutually acceptable competitive process, currently programmed for$30,000 per space with design and pricing to be finalized in the pre-development period • Inclusive in the Authority's costs shall be a Development Fee for the Parking Facilities equal to 2%of the total cost • Authority shall operate and collect revenues from the parking facilities in the same manner as other publically-owned parking facilities at the Oceanfront. • Authority shall grant to the Developer a mutually agreeable parking license wherein the Developer,or its successors and assigns, shall have the exclusive right to use a designated number of parking spaces throughout the Project,with the locations and cost of such Parking License to be established in the development documents. zo January 8, 2019 12 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Page 3 (cont'd) 3. City/Authority Participation b. Entertainment Venue • Design, development and construction of a 3,500 person capacity venue will be purchased from Developer by Authority on a pay as-you-go basis • Authority will pay actual costs not to exceed $30,000,000 with pricing established by design and a guaranteed maximum price contract proposal obtained through a mutually acceptable competitive process • Inclusive in the Authority's costs shall be a Development Fee for the Entertainment Venue equal to 2%of the total cost • Prior to completion of the Entertainment Venue, the Authority shall enter into a lease with Oak View Group ("OVG")for the lease and operation of the venue • OVG shall contribute a minimum of $5,000,000 to the cost of the Entertainment Venue with OVG's contribution made pro rata throughout the design and construction period 21 Page 4 3. City/Authority Participation c. Streetscapes • Authority shall provide funding for Design, development and construction of the Streetscapes on a pay as-you-go basis for actual costs not to exceed $7,500,000 • Developer shall agree that the Project will be subject to a special assessment established pursuant to a Special Services District ("SSD"), which will pay for certain enhanced services at the Project, and for maintenance and upkeep of all Streetscapes. • SSD rate will be set by City Council after consultation with the Developer during the pre-development period • The Developer shall reserve the exclusive right to service all areas of the Project for concessions, umbrellas, cabana service, food and beverage service, and all other vending or services comparable to the operation of a mixed-use development of this quality, subject to applicable permits and licenses 22 January 8, 2019 13 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Page 4 (cont'd) 3. City/Authority Participation d. Incentive-TDFP+ Performance Grant • (i)Assist the Developer in qualifying for Tier II TDFP financing with the City's additional 1/2 percent share coming from the TIP Fund • (ii) Provide an annual performance grant in an amount when added to the TDFP sufficient to yield a total Incentive of up to $5,000,000 per year for twenty years based on the integrated project scope, with a development budget currently estimated at $227,500,000. • Performance Grant will be payable solely out of tax revenues generated by the elements of the Project owned by Developer and otherwise payable to the TIP Fund. • The Performance Grant will be payable quarterly in arrears. 23 Page 4 (cont'd) 3. City/Authority Participation e. Performance Grant during first 3 years of stabilization • First 3 years of stabilization means the first 3 years after substantial completion of the Project • Developer may not generate sufficient Net Operating Income, which when combined with TDFP and the Performance Grant amount, to attain a Return on Cost of 10%. • To address this potential shortfall, the parties will agree to increase the Performance Grant to achieve Return on Cost of 10% in stabilized years 1-3 with a corresponding reduction in the Performance Grant in the final three years. • During this period, in addition to the revenues identified above, Developer shall receive credit for the value of all taxes paid at the Project, provided that such amounts shall be paid by the TIP Fund and not the General Fund. 24 January 8, 2019 14 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Page 4 (cont'd) 3. City/Authority Participation f. Performance Grant during first 3 years of stabilization • To satisfy the expressed aspiration for a pedestrian-oriented cohesive development project, with the features described above, the City has authorized the transfer of title of the Project to the Authority. • After approval of this Term Sheet the City and Authority will consummate that transaction and the Authority shall apply to the City for(i)the administrative reclassification of the use of the Eighteenth Street right of way between Arctic and Pacific Avenues, and (ii) conditional closure of Nineteenth Street between Arctic and Pacific Avenues. 25 Page 5 4. Next Steps a. Public briefing of Term Sheet on January 8 b. Public Comment and City Council vote on Term Sheet on January 15 c. Authority vote on Term Sheet on January 15 d. Development of definitive, binding documents. Included in the documents will be a"pre-development period"where the parties will agree to jointly fund design of the Project to allow definitive pricing to be attained.At execution of definitive documents (which will follow additional public outreach and a vote by both City Council and the Authority)the parties will have agreed on guaranteed maximum price contracts and the Authority's audit and cost verification rights for all elements of the Project being constructed and a competitive bidding process for the construction work paid for by the Authority. The parties will also agree on a plan of finance for the Project e. At the time of execution of the definitive documents,the Authority and City will enter into a support agreement whereby the City agrees to fund the Authority's obligations for the Project 26 January 8, 2019 15 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) The City's total capital investment is$95.5 Million: Project Term Sheet - City Investment * Parking Garages - 1934 spaces x $30,000 per space $58,020,000 Entertainment Venue $30,000,000 Common Spaces $ 7,500,000 Total Capital Investment $95,520,000 Potential Annual Incentive Payment - 20 Yr Term (Tier 2 TDFP + Performance Grant) $ 5,000,000 •Does not include value of real estate property appraised at$37 M Here is an overview of the Commonwealth of Virginia Tourism Development Financing Program: Commonwealth of Virginia Tourism Development Financing Program Program provides two different tiers of financing to compensate for a shortfall in project funding. $100 million 0% TIER 1 Developer An.mount=to of the aof.ct,overta,ty c.ntaue3 n Odd by eachpartner to the lender wml 'i I the pep.debt,.,v,ce a oanpt.te Developer Locality State $100 pion 8- 0% 20 i TIER 2 An amount n to of the ppot."er tto o lend*, revenue 3 n wd w by each p., ,tooM tlend.,until ,t the PP'debt sent°.n"ander. Developer Locality State January 8, 2019 16 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Here is the Breakdown of Annual Incentive Payment Tier 2 TDFP&Performance Grant: Breakdown of Annual Incentive Payment Tier 2 TDFP & Performance Grant Estimated $5,000,000 +/- • $3,183,000 +/- generated by Tier 2 TDFP(1.5%from each participant) • $1,000,000 from City, $1,000,000 from State, $1,000,000 from Developer • $1,387,000 +/- by dedicating 100%of Admissions taxes generated by Venture's condominium units (excludes Entertainment Venue) • $430,000 +/- by dedicating 20%of Meals taxes generated by Venture's condominium units (excludes Entertainment Venue) 29 Here are the Outstanding Issues: Outstanding Issues • Terms for Church Block (Office tower with parking) • Terms for Entertainment Venue • Operating Agreement & Cost Participation to be finalized • Terms for Norfolk Southern/Dominion Parcel & 1 8th Street • Fee owned by Norfolk Southern, leased to Dominion for substation • Relocation of substation opens block for vertical development January 8, 2019 17 CITY MANAGER'S BRIEFINGS DOME/WAVE PROJECT TERM SHEET ITEM#68774 (Continued) Here are the Next Steps: Next Steps 1. VB Development Authority vote on Term Sheet January 15 2. Public Comment & City Council vote on Term Sheet on January 15 3. Negotiate Development Agreement for final approval in 2019 Mayor Dyer expressed his appreciation to Mr. Williams for the presentation. January 8, 2019 December 21,2018 DOME SITE REDEVELOPMENT TERM SHEET The City of Virginia Beach Development Authority(the"Authority")issued a Request for Qualifications(RFQ)for the development of approximately 10.5 acres known as the"Dome Site". The Dome Site consists of three(3)blocks of approximately 3.2 acres each located on 19th St., an additional 0.70 acres parcel at the corner of 18th St. and Arctic Ave., and a portion of 19th Street between Pacific Ave. and Arctic Ave. (the "Property"). The Property is shown on Exhibit A, attached hereto. Representatives of Venture Waves, LLC (or its assigns) (the "Developer") submitted its qualifications to the Authority on January 4, 2017. The Authority elected to exclusively negotiate with the Developer on November 21,2017.The Authority and the Developer executed an Exclusive Dealing Agreement,dated February 1,2018, as amended. As set forth below, the Developer proposes the development of a mixed-use development project consisting of office, retail, residential, entertainment, recreational and parking uses. The Developer has requested the Authority and the City of Virginia Beach (the "City") to publicly participate in the Project (defined below) primarily in the form of the acquisition of the entertainment venue,parking facilities and certain additional improved public spaces. In addition, the Developer has requested TDFP participation and a performance grant in an amount necessary to achieve a financeable return on cost. These forms of participation will allow the Developer to address public parking needs, provide public amenities and dramatically enhance the density and quality of development, consistent with the City's vision for the Dome Site. This Term Sheet is an outline of terms. Moreover,this Term Sheet is not,nor is it intended . to be, an offer, an acceptance, or a binding agreement of any kind. To the contrary, this Term Sheet is only a summary of the basic terms of a possible transaction, which may be agreed in principle only. Although this Term Sheet identifies many of the material issues, any possible transaction is complex and issues may arise during preparation and negotiation of definitive documentation that have not been discussed in this Term Sheet. Accordingly, legal obligations among the parties will only be as specified in any definitive agreements that ultimately may be approved by City Council, the Authority's Board of Commissioners and the Developer's principals,and executed by all of the parties. Any and all obligations of the City and the Authority are subject to appropriation of sufficient funds to meet those obligations by the City Council of the City of Virginia Beach. Additionally, none of the parties to this Term Sheet are under any obligation or duty to attempt to negotiate a transaction or any related documentation or, if such negotiations commence, to continue such negotiations. Nonetheless, by approving this Term Sheet, each party indicates its belief that this Term Sheet can form the basis for a transaction and their respective willingness to commence negotiation and preparation of definitive documentation toward that end. 1 December 21, 2018 1. Project Description: The Developer intends to ground lease the Property from the Authority for a term of 60 years for$1.00 per year,subject to two 20-year extensions based on Project performance at Developer's discretion. The Developer will submit its leasehold interest in the Property as the Declarant to create a leasehold condominium regime pursuant to the Virginia Condominium Act. The Developer's Declaration of Condominium, By- laws, Plats and Plans will be mutually agreeable to the Authority and the Developer. The condominium regime will consist of multiple condominium units, certain common elements and certain limited common elements. The Developer intends to retain title to certain condominium units in the name of the Developer or in affiliated entities and intends to convey title to certain condominium units to the Authority and/or the City. The Developer intends to construct a mixed-use development project containing multiple buildings and use categories generally as described below. The parties intend the Project to be constructed on the Property but may consider adjacent parcels if acquired. The following elements will constitute the"Project": a. Entertainment Venue: The "Entertainment Venue" shall be a state-of-the-art music and entertainment facility to accommodate approximately 3,500 patrons. b. Parking Facilities: The "Parking Facilities" shall include approximately 1,900 parking spaces located throughout the Project. c. Commercial Facilities: The "Commercial Facilities" shall include a mix of retail, experiential retail, attractions, surf park, food and beverage facilities and office uses. d. Residential Facilities: The"Residential Facilities"shall include attached multifamily dwellings located throughout the Project. e. Streetscapes: The "Streetscapes" shall include upgraded hardscapes and landscapes, pedestrian areas,pedestrian bridges and other features customarily found in a first-class urban mixed-use development. 2. Developer Obligations. The Developer will construct, or cause to be constructed, all elements of the Project. All components above are subject to mutual collaborative refinement. The Developer's construction of the Project shall comply with the City Council's Small Business Enhancement Program. In addition, the Developer acknowledges the City Council's 10%minority subcontractor goal and will work with the City to identify and use minority subcontractors to the extent commercially reasonable. 3. City/Authority Participation. In order to satisfy the City's expressed need for additional public parking,the City's expressed desire for a 3,500 person capacity entertainment venue 2 December 21,2018 and additional family-friendly entertainment offerings, and the expressed aspiration to provide a higher level of development quality, high quality entertainment and a mix of retail and restaurant components,the Authority will enter into several agreements with the Developer to facilitate the development of the Project. They are described below: a. To satisfy the expressed need for additional public parking, the Developer shall construct and sell to the Authority, and the Authority shall purchase from the Developer, the Parking Facilities pursuant to a Condominium Parking Unit Purchase Agreement in form and substance mutually satisfactory to the Authority and the Developer. The Authority shall provide funding for the design, development and construction of the Parking Facilities on a pay-as-you-go basis. The Authority will pay actual costs based on design and a guaranteed maximum price contract proposal obtained through a mutually acceptable competitive process,currently programmed for $30,000.00 per space with design and pricing to be finalized in the pre-development period described below. Inclusive in the Authority's costs shall be a Development Fee for the Parking Facilities equal to 2%of the total cost for same. This fee will be payable on mutually agreeable terms.The Authority shall operate and collect revenues from the parking facilities contained therein in the same manner as other publically-owned parking facilities at the Oceanfront. The Authority shall grant to the Developer a mutually agreeable parking license wherein the Developer, or its successors and assigns, shall have the exclusive right to use a designated number of parking spaces throughout the Project, with the locations and cost of such Parking License to be established in the development documents. b. To satisfy the expressed desire for a 3,500 person capacity entertainment venue, the Developer shall construct and sell to Authority,and the Authority will provide funding for the design, development and construction of the Entertainment Venue on a pay-as- you-go basis. The Authority will pay actual costs not to exceed $30,000,000 with pricing established by design and a guaranteed maximum price contract proposal obtained through a mutually acceptable competitive process and finalized in the development documents. Inclusive in the Authority's costs shall be a Development Fee for the Entertainment Venue equal to 2%of the total cost paid by Authority. This fee will be payable on mutually agreeable terms. Prior to completion of the Entertainment Venue, the Authority shall enter into a lease with Oak View Group ("OVG") and/or its affiliates, in which OVG shall lease and operate such venue on terms to be mutually negotiated among the parties. OVG shall contribute a minimum of$5,000,000 to the cost of the Entertainment Venue with OVG's contribution made pro rata throughout the design and construction period. 3 December 21, 2018 c. To satisfy the expressed aspiration to provide a higher level of development quality, the Authority shall provide funding for the design, development and construction of the Streetscapes. Such amount shall be paid to the Developer on a pay-as-you-go basis for actual costs not to exceed $7,500,000. The Developer shall agree that the Project will be subject to a special assessment established pursuant to a Special Services District ("SSD"), which will pay for certain enhanced services at the Project, and for maintenance and upkeep of all Streetscapes. The SSD rate will be set by City Council after consultation with the Developer during the pre-development period described below.The Developer shall reserve the exclusive right to service all areas of the Project for concessions, umbrellas, cabana service, food and beverage service, and all other vending or services comparable to the operation of a mixed-use development of this quality, subject to applicable permits and licenses. d. To satisfy the expressed aspiration to provide high quality entertainment, experiential retail with a mix of retail and restaurant components, the City and Authority have agreed to provide or cooperate with certain incentives(collectively,the"Incentive") consisting of(i) assisting the Developer in qualifying for Tier II TDFP financing contemplated by Va. Code Section 58.1-3851.2 ("TDFP"),with the City's additional 'A percent share coming from the TIP Fund, and(ii)providing an annual performance grant in an amount when added to the TDFP sufficient to yield a total Incentive of up to $5,000,000 per year for twenty years(the"Performance Grant")based on the integrated project scope, with a development budget currently estimated at $227,500,000. Other than as described below,the Performance Grant will be payable solely out of tax revenues generated by the elements of the Project owned by Developer and otherwise payable to the TIP Fund. The Performance Grant will be payable quarterly in arrears. e. During the first three years of stabilization(meaning the first 3 years after substantial completion of the Project as described above), it is anticipated that Developer may not generate sufficient Net Operating Income,which when combined with TDFP and the Performance Grant amount,to attain a Return on Cost of 10%. To address this potential shortfall, the parties will agree to increase the Performance Grant to achieve Return on Cost of 10%in stabilized years 1-3 with a corresponding reduction in the Performance Grant in the final three years. During this period, in addition to the revenues identified above, Developer shall receive credit for the value of all taxes paid at the Project,provided that such amounts shall be paid by the TIP Fund and not the General Fund. f. To satisfy the expressed aspiration for a pedestrian-oriented cohesive development project, with the features described above, the City has authorized the transfer of title 4 December 21,2018 of the Project to the Authority.After approval of this Term Sheet the City and Authority will consummate that transaction and the Authority shall apply to the City for(i) the administrative reclassification of the use of the Eighteenth Street right of way between Arctic and Pacific Avenues, and (ii) conditional closure of Nineteenth Street between Arctic and Pacific Avenues. 4. Next Steps a. Public briefing of Term Sheet on January 8, 2019 b. Public Comment and City Council vote on Term Sheet on January 15,2019 c. Authority vote on Term Sheet on January 15, 2019 d. Development of definitive,binding documents. Included in the documents will be a"pre-development period"where the parties will agree to jointly fund design of the Project to allow definitive pricing to be attained. At execution of definitive documents(which will follow additional public outreach and a vote by both City Council and the Authority)the parties will have agreed on guaranteed maximum price contracts and the Authority's audit and cost verification rights for all elements of the Project being constructed and a competitive bidding process for the construction work paid for by the Authority.The parties will also agree on a plan of finance for the Project. e. At the time of execution of the definitive documents, the Authority and City will enter into a support agreement whereby the City agrees to fund the Authority's obligations for the Project. 5 18 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 3:48 P.M. Mayor Dyer welcomed Cynthia Spanoulis, Director—Aquariums and Museums. Ms. Spanoulis expressed her appreciation to City Council for their continued support: A YEAR OF: TRANSFORMATION �.- Virginia Aquarium I Annual Report FY18 AQUARIUM l i I ? II �- yam- t -- -- - r ' t ' � /\.._) Jam_ J-- • / (� Through the year, the Aquarium hosted several events including mermaids, Special Needs Under the Sea, Sensible Seafood Fest, Adult Overnight and Valentine's Day Dinner: A Year of: Events „ p1/44. 11111i fi y . wJ -'4: y January 8, 2019 19 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) A new strategic plan was built to encompass all aspects of the Aquarium's business with five (5)key goals: ' We built a strategic plan to encompass e — all aspects of the Aquarium's business. ait gi!"n —, .0 'Li. We undertook four major renovation projects. Improvements throughout the Aquarium were made by increasing the number of staff and volunteers on the floor to answer guest questions, and added directional carpet inlays and overhead signage: I A Year of: Inspiration pc — 4, "'�`:,t We were inspired to deliver a '' ` better guest experience. rftt .4-:},---- 0.40 voir f ,,.. _ ,..... , ,4,0 4v..,-, . i , \ c _ , .. Av. . . ., C T_ /.' lasio„, il , . .. _ ..... ,... ilk J Our veterinarian's partnership with - OCEARCH reaches&inspires thousands. January 8, 2019 20 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) Some of the Aquarium's partnerships include working with OCEARCH, the Center for Conservation Biology, Virginia Tech and the Virginia Department of Game and Inland Fisheries: A Year of: Partnering . -- In partnership with The Center for Conservation Biology(CCB),we monitored nesting osprey. ." We assisted a Virginia Tech and ►' Virginia Department of Game and ) - ----41 Inland Fisheries'field research project. - ,0- Video of a Caribbean Reef Octopus eggs hatching has been viewed over four(4)million times on Aquarium social sites. Worldwide, the video was seen by more than 190-Million people in 19 different countries: The video has been viewed over 4 million times on our social sites and generated millions more impressions across news sites. • 4our Komodo � dragons received 1 ,-'. a special treat. ar 1 January 8, 2019 21 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) Through the Virginia Aquarium Stranding Response Program, responses were made to 371 marine animals, including; 98 marine mammals and 273 sea turtles: A Year of: Conservation The Stranding Response Team responded . �is ..., to 371 marine animals this year. lirAIL V a i4-- 1, „rsa .G YL.. a .4 , # L * ' 4, i,Nt:...0 , %.P f., , _,, , , , „.,..,„ . � E 41 In August 2017,we responded to a lo...erhe•d.sea turtle nest t.a atched. Through successful fundraising efforts, the Darden Marine Animal Conservation Center will open in 2020. The Marsh Pavilion will have all new exhibits, an outdoor watershed exhibit, a toddler play area, and a new veterinary wing opening in early 2021. A Year of: Campaigning L 4 , 'cif — : ? h t. is 11F' ' +ilrr — The Capital Campaign for supports -a' the new Darden Marine Animal i'` , ' Conservation Center and renovations . to the Owls Creek Marsh Pavilion. January 8, 2019 22 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) Here is an overview of the Virginia Aquarium's FY-18 Budget with net revenue of just over$2-Million: A Year of: Numbers ?is Operating Revenue&Support 640,231 >., r Guest Attendance 16% Cnn:rmopons.Grants&S.pporc TOTAL 11% Kehl 7% Memneren.p 7% f eai ny Use S Coftemone 7% EAuce�Px9•ixne ` 2Y. AnItnals r Operating Expenditures fc TOTAL 10'G nnn,n,.on.a ..ax uv.✓c '" NET $2,068,082 Ms. Spanoulis introduced Anirban Basu, Chairman and CEO of Sage Policy Group. Mr. Basu advised he was hired to conduct a study of the economic and fiscal contributions of the Virginia Aquarium. A copy of the full report is attached hereto and made a part of the record: _- = —� The Economic & Fiscal Contributions of the Virginia Aquarium: An Important Investment in the City of Virginia Beach, Hampton Roads Region, and the Commonwealth of Virginia Sage Policy Group,Inc. January 8'".2019 titr;r- 1'(lli.r r u�; 1 January 8, 2019 23 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) Here is an overview of Sage Policy Group, Inc.: Sage Policy Group, Ing--- • Sage is an economic and policy consulting firm based in Baltimore that serves clients in more than 4o states and in 7 countries(USA,Canada, Indonesia,Cambodia,Bahamas,Saudi Arabia&Zambia); • Anirban Basu serves as the chief economist for Associated Builders& Contractors,the Construction Financial Management Association, MARCUM,Maryland Realtors Association,and many others; • The firm has authored economic impact analyses on behalf of communities across the U.S.,for Fortune 50o Companies,and for organizations like the National Aquarium; • Sage's Economic Impact work is used as a case study at IMPLAN training seminars. •f: ln The Sage Policy Group was hired to study the economic and fiscal contributions of the Aquarium to the City and Commonwealth of Virginia: Nature of the Endeavor-----:---' The Virginia Aquarium hired Sage Policy Group, Inc. to study the economic and fiscal contributions made by the Aquarium to the City of Virginia Beach and the entirety of the Commonwealth of Virginia. 1111 Sage Policy C roup, Inc. January 8, 2019 24 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) The study used IMPLAN Economic Modeling Software to provide an unbiased analysis of the economic data of the Aquarium: Methodological Notes ---- • The study team used IMPLAN Economic Modeling Software,an industry standard,to generate economic and fiscal impact estimates; • IMPLAN embodies multipliers specific to Virginia Beach,allowing for geographically specific impact estimates; • The custom IMPLAN model used inputs from: • Virginia Aquarium financial data; • An intercept survey of Aquarium visitors; Sage R)11< Croup, lr„ Christopher Newport University was hired to conduct a survey of Aquarium attendees to help the study team determine attrition: Theirvey_ _ • The study team hired Christopher Newport University to conduct an intercept survey of Aquarium attendees; • The survey,which was administered during both the peak(June- August)and off peak(September-May)season,asked guests: • If the Aquarium was their primary reason for visiting the area; • How many days they intended to stay in the area; • How much they intended to spend in the area; • N=423 January 8, 2019 25 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) If a survey respondent claimed to spend$100 during their time in the City and "Somewhat Agree"that the Virginia Aquarium was their primary reason for visiting, the analysist attributed$75.00($100 x 0.75) of visitor spending to the Aquarium: The Attribution Problem Response to:"The Virginia Aquarium is Visitor Spending your primary reason for visiting Virginia Number of Responses Beach.* Weighting Factor Strongly Agree 119 Somewhat Agree 98 Neither Agree nor Disagree 101 Somewhat Disagree 53 x 0.25 Strongly Disagree 52 x 0.0 Total 423 - ■v j ( ,zitil) Ing The study determined that attributable visitor spending totaled$172-Million: Visit. tiun I:rum '\rear and \far — m Visitor Spending Visitors Attributable Visitor Spending Peak Season Local 54,401 $4,342,639 Nonlocal 216,495 $83,740,448 Peak Total 270,896 $88,083,087 Off-Peak c.vans Local 167,445 $9,727,896 Nonlocal 177,181 $74,196,810 Total 344,626 $83,924,706 Total 615,522 $172,007,79 ■ January 8, 2019 26 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) Here is an overview of Aquarium expenditures between FY2013 and FY2018: Operations: Another major source of impact_ Type of Expenditure 11 till i -I.1 2i11. I iIstn•e Pa,roll $6,249,172 $7,963,837 27.40% kd.ertising.Printing,Publishing _ $583,980 $709,597 21.50% ries(if an.) $130,581 $165,598 26.80% faintenutce/Itpain 5161,669 $211,714 31.00°, :apical Capcnditores $4,665,891 $6,604,513 41.50% Postage/freight/shipping $55,333 $44,209 -20.10% 'rnr asi,nal,Legal and I:mu nbing $156,253 $82,750 -47.00% )then Contracted Seri ices $1,072,474 $1,257,385 17.20% i"r/'lac-Communications $182,824 $209,080 14.40% mribution. $79,784 $201,905 153.10% I<ei.d/Concerions(ono of good.gold) 5559,285 $729,789 30.50°/. oppsrs 5845,152 $789,046 .66.60% I trigon $47,071 $34,200 -27.30% mare"/h5ngn.e CWrges/CC pee 4134,843 $218,905 62.30% I n.uraocc $263,174 $278,710 5.90% I...nail/Professional Development/Dues r Membership $225,603 $249,171 10.40% %chicle/Vessel Expt.. $47,191 $35,896 -23.90% Depreciation 4674,705 $613,473 -9.10% $1.134,985 020,399778 26.40% - . ■gage Fblicy I Group, Inc. Here is an overview of Aquarium revenues between FY2013 and FY2018: Aquarium ' evenues Expanding Rapidly Types of Revenues I FY 2013 FY 2018 I %Ch.ut2.. quarbmt/Theater Admission Revenue $6,037,893 $7,453,159 23.40% ood Service Concession $186,615 $227,297 21.80°'6 i•bolos Concession $202,830 $382,494 88.60% /'v " - $267,164 - onal gift shop sales and net receipts $1,313,235 $1,601,952 22.00% aeiiity Rentals $83,032 $146,483 76.40°'0 duration programs $500,502 $955,763 91.00°/6 fembeohip $883,751 $1,059,634 19.90°. Investment income $271,881 $305,183 12.20% ,untributions and grants 52,212,666 53,789,703 71.30% a they-Gain on sale of assets - $25,160 - ooal Revenues $11,692,405 $16,213,992 38.70% _.. .11 Sage Policy Group,Inc. January 8, 2019 27 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) Here is an overview of Economic Impacts of Operations/Visitor Spending(annual): Economic Impacts: Operations/Visitor Spending(annual) Employee Jobs Business sales Corn.ensation Virginia Direct effects - - - Indirect effects 69 $4,405,255 $13,578,922 Induced effects 40 52,089,250 $6,233,461 Total 109 $6,494,505 $19,812,383 Virginia Beach Direct effects 2,533 $48,085,168 $155,559,119 Indirect effects 389 $17,878,604 $57,118,655 Induced effects 340 $13,569,569 $44,326,271 Total 3,261 $79,533,341 $257,004,045 SageupFb, Inc.Gro Here is an overview of Economic Impacts of Capital Spending(FY2013—FY2018): Economic Impacts: Capital Spending(FY 2013 - FY 2018) Employee Jobs Business sales Compensation Virginia 'rest effects - - - ndirect effects 11 $668,848 $2,474,979 nduced effects 7 S351,992 51,045,646 otal 18 $1,020,839 $3,520,625 Virginia Beach 1 irect effects 162 $10,536,918 $26,477,016 Indirect effects 43 $1,919,063 55,531,621 63 $2,521,559 $8,234,595 Total 268 $14,977,540 $40,243,232 ■Sage Policy Group, Inc. January 8, 2019 28 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) Here is an overview of Fiscal Impacts (annual): Fiscal Impacts (annual) Location and type of impact Value Virginia Beach Property tax S6,256,240 Admissions taxes $771,423 Other taxes $596,857 Total $7,624,520 Virginia S2,018,633 Sales tax S6,565,518 Other Taxes $475,883 Total $9,060,034 ■ Here are the Analytical Highlights: Analytical Highlights • City of Virginia Beach tax revenues increase by$12 for every t visitor to the Aquarium via indirect and induced impacts; • In FY2o18,the Aquarium generated enough City tax revenue to conceptually pay the salary for nearly 18o additional teachers or firefighters and 185 additional police officers(of course,some of these tax revenues are earmarked for other purposes); • The Aquarium supports more than 3,25o jobs in Virginia Beach once multiplier effects are considered; • With an operating budget of roughly$14 million,the Aquarium supports more than$257 million in annual economic activity in Virginia Beach and over$276 million across the State. January 8, 2019 29 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) , th so much happening,change is inevitable. i _ _ "..---- ----•••'...,...„ : TM -7,------.....sst t .........i....) k A video presentation of"A Day in the Life of the Aquarium"was played: ...: stiit4 • January 8, 2019 30 CITY MANAGER'S BRIEFINGS VIRGINIA AQUARIUM ECONOMIC IMPACT AND ANNUAL REPORT ITEM#68775 (Continued) 111111111111111 • Join us as we embrace the transformation and continue to evolve to surpass our guests'needs and expectations and further our mission. 1 Mayor Dyer expressed his appreciation to Ms. Spanoulis and Mr. Basu for the informative and delightful report. January 8, 2019 The Economic Contributions of the Virginia Aquarium Submitted by: Sage Policy Group, Inc. Submitted to: Stakeholders in and around Virginia Beach, VA December 2018 Table of Contents Introduction 4 I. Input Data&Methodology 5 Budgetary Data 5 Survey Data 7 II. How to Interpret Results 9 ❑ IMPLAN Economic Modeling Software 9 Employment 9 Labor Income 9 Output (Business Activity,Economic Activity) 9 Direct Effects 10 Indirect Effects 10 Induced Effects 10 III. Economic and Fiscal Impacts 11 ❑ Ongoing,Annual Impacts—Operational&Visitor Spending 11 Fiscal Impacts 12 ❑ Capital Spending Impacts 12 Fiscal Impacts 14 Conclusion 15 Appendix A—IMPLAN 16 List of Exhibits Exhibit El: Summary of Findings 3 Exhibit 1:Virginia Aquarium Expenditures,FY 2013,FY 2017,&FY 2018 5 Exhibit 2:Virginia Aquarium Revenues,FY 2013,FY 2017,&FY 2018 6 Exhibit 3:Visitor Spending Weighting Based on Attribution 7 Exhibit 4: Survey Responses to"The Virginia Aquarium is your primary reason for visiting Virginia Beach." 7 Exhibit 5: FY 2018 Visitor Spending Estimates by Peak and Shoulder 8 Exhibit 6: Virginia Aquarium Annual Visitor Spending 8 Exhibit 7: Annual Economic Impacts generated by the Virginia Aquarium 11 Exhibit 8: Ongoing Fiscal Impacts,FY2018 12 Exhibit 9: Capital Expenditures over Time,FY 2013—FY 2018 13 Exhibit 10: One-time Economic Impacts FY 2013—FY 2018 13 Exhibit 11: One-time Economic Impacts by Year,FY 2013—FY 2018 14 Exhibit 12: One-time Fiscal Impacts,FY 2013—FY 2018 14 The Economic Contributions of the Virginia Aquarium 2 • The Economic Contributions of the Virginia Aquarium Executive Summary The Virginia Aquarium&Marine Science Center hired Sage Policy Group,Inc. to estimate the Aquarium's economic and fiscal contributions to City of Virginia Beach and the Commonwealth of Virginia. Sage used IMPLAN, an industry standard economic modeling software,to produce all economic impact estimates. Fiscal impact estimates were generated using a combination of IMPLAN and proprietary methods based on publicly available budget and tax information. Inputs to our custom multi-regional input/output model were sourced from Aquarium financial data and an intercept survey of Aquarium attendees conducted by Christopher Newport University. Based on our analysis,we conclude that the Virginia Aquarium supports more than 3,300 jobs per annum, virtually all of which are located in or around Virginia Beach. These jobs are supported by a combination of visitor and Aquarium operational-spending and are associated with more than$86 million in annual employee compensation and nearly$277 million in economic activity. These impacts support in excess of$7.6 million in annual tax revenues for the City of Virginia Beach—enough to pay base salaries for more than 170 new fire fighters,teachers,or police officers each year—and an additional$9+ million in annual tax revenues for the Commonwealth of Virginia. The Aquarium's capital investments,which create one-time impacts,supported an additional 286 jobs statewide between FY13 and FY18. Those jobs were associated with nearly$16 million in employee compensation and more than$43.7 million in economic activity. Over that 5-year period,the Aquarium's capital expenditures supported more than$500,000 in Virginia Beach tax receipts and greater than$800,000 in Commonwealth-level revenues. Exhibit El: Summ. of Findings Inputs FY 2018 Visitors 618,852 Visitor S.endin: $172,007,793 O.eratin_: Ex,enditures $13,795,265 Operational Impacts (ongoing, annual) Economic Impact Jobs Income Business Sales Vir•' 'a Beach 3,261 $79,533,341 $257,004,045 Remainder of State 109 $6,494,505 $19,812,383 Total 3,370 $86,027,846 $276,816,428 Fiscal Impact Property Tax Income Tax Sales Tax Other Taxes 'Total Vir:' 'a Beach $6,256,240 - $126,055 $1,242,225 $7,624,520 - $2,018,633 $6,565,518 $475,883 $9,060,034 Capital Investment Impacts, FY 2013—FY 2018 (non-repeating) Economic Impact Jobs Income Business Sales Vitt' 'a Beach 268 $14,977,540 $40,243,232 Remainder of Vir_:inia 18 $1,020,839 $3,520,625 Total 286 $15,998,379 $43,763,857 Fiscal Impact Property Tax Income Tax Sales Tax Oilier Taxes Total Vir:inia Beach $408,667 - $8,234 $105,689 $522,590 - $382,608 $451,175 $59,830 $893,613 Source:Sage,Virginia Aquarium,IMPLAN The Economic Contributions of the Virginia Aquarium 3 Introduction The Virginia Aquarium&Marine Science Center (Aquarium) commissioned Sage Policy Group,Inc. (Sage) to conduct an economic and fiscal impact assessment. To that end,this report estimates the jobs,labor income,output,and tax revenues supported by the Aquarium. The Aquarium is situated in Virginia Beach and represents a collaboration between the City of Virginia Beach and the Virginia Aquarium&Marine Science Center Foundation,a 501 (c)3 nonprofit organization. The Aquarium first opened its doors on June 14, 1986. In FY2018, the Aquarium spent more than$14 million on operations,hosted more than 615,000 guests,and rented out facilities supporting approximately 125 events associated with more than 17,400 attendees. While the impacts of visitor and operational spending are relatively straightforward to model,other impacts are more difficult to measure. For instance,the Aquarium also contributes to quality of shared well-being through its educational efforts and environmental pursuits. In 2017 alone,the Aquarium responded to more than 375 cases of marine life stranded on beaches. That year,the Aquarium led nearly 750 educational programs that impacted over 25,000 students. This report does not endeavor to assign dollar values to the qualitative aspects of the Aquarium's contributions, but this should not be interpreted as suggesting that associated impacts are inconsequential. The balance of this report is presented in three sections: I. Input Data&Methodology (page 5) This section discusses the inputs to our economic model and the methodologies the Sage study team utilized to derive its impact estimates. II. How to Interpret Results (page 9) This section provides a brief primer on how to best interpret the study's findings. III. Economic and Fiscal Impacts (page 11) This section presents our findings using a combination of text,charts and tables. The Economic Contributions of the Virginia Aquarium 4 I. Input Data & Methodology This section of the report a) presents the data used to drive the analysis;b) details the sources from which they came;and c) discusses relevant analytical techniques. An appendix to this report supplies additional methodological detail. Budget Data The Aquarium's budget data (largely in the form of expenditures,though institutional revenues are also presented below) served as a primary input to our economic model. Note that the Aquarium utilizes a July June fiscal calendar. Exhibit 1: Vir•' 'a A•uarium Ex.enditures,FY 2013,FY 2017,&FY 2018 F1' 2013- T�pe of Expenditure FY2013 FV2017 FV2018 FY 2018 % ('hange Payroll $6,249,172 $7,874,664 $7,963,837 27.4% Advertising,Printing,Publishing $583,980 $923,544 $709,597 21.5% Leases (if any) $130,581 $155,941 $165,598 26.8% Maintenance/Repairs $161,669 $155,012 $211,714 31.0% Capital Expenditures $4,665,891 $6,536,358 $6,604,513 41.5% Postage/Freight/Shipping $55,333 $23,174 $44,209 -20.1% Professional,Legal and Consulting $156,253 $74,458 $82,750 -47.0% Other Contracted Services $1,072,474 $1,264,797 $1,257,385 17.2% IT/Tele-Communications $182,824 $186,379 $209,080 14.4% Contributions $79,784 $89,275 $201,905 153.1% Retail/Concessions (cost of goods sold) $559,285 $782,598 $729,789 30.5% Supplies $845,152 $708,110 $789,046 -6.6% Utilities $47,071 $37,383 $34,200 -27.3% Interest/Finance Charges/CC Fees $134,843 $271,470 $218,905 62.3% Insurance $263,174 $297,078 $278,710 5.9% Travel/Professional Development/Dues& $225,603 $237,402 $249,171 Memberships ' 10.4% Vehicle/Vessel Expenses $47,191 $20,338 $35,896 -23.9% Depreciation $674,705 $592,008 $613,473 -9.1% Total $16,134,985 $20,229,989 $20,399,778 26.4% Source:Virginia Aquarium Virginia Aquarium expenditures increased by more than 25 percent from FY2013 to FY2018. In absolute terms, the largest increase occurred in the category of capital expenditures. Spending in this category expanded by approximately$1.9 million or by more than 40 percent during this period. Note that for the purposes of this economic and fiscal impact assessment, capital expenditures are The Economic Contributions of the Virginia Aquarium .5 modeled separately from operating expenditures. Exhibit 1 provides a breakdown of Aquarium expenditures for fiscal years 2013, 2017,and 2018 to allow readers to understand both 1-year and 5- year trends. The high degree of specificity and granularity provided by the Aquarium's financial report allows for a precise and disaggregated assessment of Aquarium impacts. Exhibit 2 indicates that revenues expanded 38.7 percent from FY2013 to FY2018. Over that span,the largest increase occurred in education programs revenues,which expanded from roughly$500,000 in FY2013 to more than $950,000 in FY2018. Facility rentals also increased briskly over this period (by more than 76 percent),a testament to the Aquarium's ability to increasingly leverage its resources into revenues due to a combination of stepped-up marketing and public interest. Exhibit 2:Vir_•' 'a A•uarium Revenues,FY 2013,FY 2017,&FY 2018 FY2013 - Type of Revenue FY2013 FY2017 FY2018 FY2018 '%0 Change Aquarium/Theater Admission $6,037,893 $7,243,612 $7,453,159 Revenue 23.4% Food Service Concession $186,615 $188,992 $227,297 21.8% Photos Concession $202,830 $323,089 $382,494 88.6% Adventure Park Concessions - $379,171 $267,164 Total gift shop sales and net receipts $1,313,235 $1,603,613 $1,601,952 22.0% Facility Rentals $83,032 $144,433 $146,483 76.4% Education programs $500,502 $970,882 $955,763 91.0% Memberships $883,751 $1,107,742 $1,059,634 19.9% Investment income $271,881 $280,731 $305,183 12.2% Contributions and grants $2,212,666 $4,447,869 $3,789,703 71.3% Other-Gain on sale of assets - - $25,160 Total Revenues $11,692,405 $16,690,134 $16,213,992 38.7% Source:Virginia Aquarium The increase in revenues coincides with an increase in visitation. Total attendance rose from just over 520,000 in FY2013 to more than 615,000 in FY2018, an increase exceeding 17 percent. The Economic Contributions of the Virginia Aquarium 6 • Survey Data One of the major issues in economic impact modeling is what we refer to as the attribution problem. This issue is especially relevant to analyses involving tourist destinations. The analytical question revolves around the extent to which visitor spending outside of the facility being studied can be properly attributed to the facility itself. To study visitor spending patterns and determine the extent to which total visitor spending can be attributed to the Aquarium,the Sage study team hired Christopher Newport University to conduct an intercept survey of Aquarium attendees. The survey asked guests if the Aquarium was their primary reason for visiting Virginia Beach,giving respondents options ranging from"Strongly Agree" to"Strongly Disagree." Visitor spending figures reported in the survey were then scaled by a factor according to their response. See Exhibit 3 for additional detail. • Exhibit 3:Visitor S.endin• Wei•htin• Based on Attribution Response to: "The Virginia Visitor Spending Aquarium is your primary reason Weighting, Factor for N isiling Virginia Beach." �' �' Stron_1 A:ree x 1 Somewhat A.ree x 0.75 Neither A•ree nor Disa•ree x 0.5 Somewhat Disa•ree x 0.25 Stron•1,Disa.ree x 0.0 Source:Sage - For instance,if a survey respondent claimed to spend $1,000 during their time in Virginia Beach and "Somewhat Agree" that the Virginia Aquarium was their primary reason for visiting Virginia Beach, we attribute $750 ($1,000 x 0.75) of visitor spending to Aquarium-generated impacts. Of the 423 survey responses,217 either strongly or somewhat agreed with the statement that the Aquarium represented their primary reason for being in Virginia Beach. Exhibit 4 breaks down the responses. Exhibit 4: Surve Res7onses to"The Vir•' 'a A•uarium is our .rim. reason for visitin• Vir•inia Beach." Response to: "The Virginia Aquarium is your primary Number of Responses reason for visiting Virginia Beach." Strongly Agree 119 Somewhat Agree 98 Neither Agree nor Disagree 101 Somewhat Disagree 53 Strongly Disagree 52 Total 423 Source:Sage,Virginia Aquarium,Christopher Newport University The Economic Contributions of the Virginia Aquarium 7 The University administered the survey at two distinct periods,once during"peak" season,which corresponds to June,July,and August,and once during"shoulder" season,which corresponds to the other months of the year. During peak season,approximately 81 percent of visitors come from outside the Virginia Beach area. Those nonlocal visitors spend an averagez$386.80 dollars in the local economy that is attributable the Aquarium during their stay. Local visitors,who account for about 19 percent of peak season visitation, spend an average=$79.83 attributable to the Aquarium during their daytrip. During shoulder season,visitation is more balanced between local and out-of-town visitors. During the nine months of the year that do not form part of peak season, 51 percent of guests come from outside the Virginia Beach area. These nonlocal, shoulder season visitors spend an average=$418.76 in the local economy that is attributable to the Aquarium,while local visitors spend an average-458.10 attributable to the Aquarium. Exhibit 5 supplies relevant summary detail. Exhibit 5:FY 2018 Visitor S.endin• Estimates b Peak and Shoulder . Visitors Attributable Visitor Spending Peak Season Local 54,401 $4,342,639 Nonlocal 216,495 $83,740,448 Shoulder Season Local 167,445 $9,727,896 Nonlocal 177,181 $74,196,810 Source:Sage,Virginia Aquarium,Christopher Newport University Based on survey-generated parameters,Sage estimates that Aquarium visitors spend approximately $172 million per annum on lodging,transportation, food, shopping,gas,and recreation. These spending estimates take the aforementioned attribution issue into account. Food and beverage and shopping figures reflect spending on food,concessions,and souvenirs at the Aquarium and recreation figures include Aquarium ticket sales. See Exhibit 6 for relevant statistical detail. Exhibit 6: Vir•' 'a A•uarium Annual Visitor S.endin Visitor Spending Peak Shoulder 'Total Lod .n! $22,620,267 $21,552,370 $44,172,637 Local Trans.ortation $7,118,791 $6,782,715 $13,901,506 Food &Bevera•e includes sales in As uarium $25,185,628 $23,996,621 $49,182,248 Sho.sin• includes sales in A.uarium $13,287,955 $12,660,634 $25,948,589 Fuel $2,370,653 $2,258,735 $4,629,388 Recreation includes A.uarium admission $17,498,085 $16,672,004 $34,170,089 Total $88,083,087 $83,924,706 $172,007,793 Source:Sage,Virginia Aquarium,Christopher Newport University The Economic Contributions of the Virginia Aquarium 8 II. How to Interpret Results • IMPLAN Economic Modeling Software To quantify economic impacts,we used IMPLAN economic modeling software and its embodied multipliers to generate estimates of employment,labor income, and output (also referred tows economic activity or business sales). Below is an abbreviated glossary of terms,presented as simply and efficiently as possible, that you'll need to understand to interpret report findings.' Employment As defined by IMPLAN, a job that lasts twelve months equals one job,two jobs that last six months equal one job,three jobs that last four months equal one job, etc. Based on this,job-years represents a useful term. For instance,an endeavor that supports 200 jobs for a six-month period would be considered to support 100 jobs as measured in job-years. For construction or capital investment events (one-time-only), for which the economic or fiscal impacts occur only once, the stated number of jobs is the total number of job-years that will be supported across the duration of the capital project. For operational (ongoing) impacts,job figures are annual and will occur every year so long as operations persist. Note that IMPLAN jobs aren't quite the same thing as full time equivalents (FTEs). Each of IMPLAN's 536 unique industries has a different conversion rate between jobs and FTEs,although for almost every industry one job is equal to less than one FTE. Labor Income Labor income is comprised of wages,benefits, and proprietor income (money accruing to owners of businesses). Labor income = all forms of employee compensation (wages & benefits) + proprietor income Output(Business Activity, Economic Activity) Output equals the value of industry production. It might be easier to conceptualize this as total business sales or economic activity. For retail industries,it is the gross margin (not gross sales). For 1 These definitions are largely attributable to IMPLAN user Phil Cheney,who,as of this writing,has contributed over 300 articles to the IMPLAN Knowledge Base The Economic Contributions of the Virginia Aquarium 9 manufacturing, output is the quantity of total sales plus/minus the change in inventories. For the service sector,output is directly equal to sales. This can be visualized by the following equation: Output = (Manufacturing sales +/- change in inventories) + (service sector sales) + (gross margin for wholesale and retail trade) These figures are based on annual production estimates for the year of the dataset. In this instance, the year is 2016,the most recent year for which data are available. Direct Effects Direct effects are impacts tightly aligned with the endeavor being analyzed. In this instance,direct effects are produced by Aquarium operational spending and the visitor spending attributable to the Aquarium. Indirect Effects Indirect effects stem from business-to-business spending activity within the study area that occurs as a result of the direct effects. These can also be considered broader supply chain effects. Induced Effects Induced effects relate to household spending that occurs due to an expanded economy. For instance,if one were modeling a construction project,associated construction worker income spent at local restaurants or gift shops would be included in the induced effects category. The Economic Contributions of the Virginia Aquarium 10 III. Economic and Fiscal Impacts • Broadly, the Virginia Aquarium's economic impacts are traceable to three sources. First,the Aquarium spends significantly in the local economy in support of its operational requirements. Second, the attributable spending of visitors represents a major source of economic impact. Third is capital spending,including to expand,renovate,maintain,and repair. While operational and visitor spending is ongoing, capital spending is modeled as a one-time economic impact for purposes of this analysis. For this reason,operational and visitor spending-related impact estimates are presented together,while capital expenditure-related impacts are presented on their own. • Ongoing,Annual Impacts—Operational&Visitor Spending Based on Sage's IMPLAN model,in FY2018,the Virginia Aquarium supported more than$257 million in economic activity throughout Virginia Beach and more than$276 million statewide. Estimated statewide impacts are inclusive of city-specific impacts. These impacts,which stem from visitor spending and the Aquarium's operational budget,repeat on an annual basis but fluctuate based on budgetary changes and the Aquarium's level of visitation. This economic activity supports more than 3,260 jobs in Virginia Beach (this is by place of work as opposed to by place of worker residence). Another 109 positions are supported in other areas of the Commonwealth. Employee compensation approaches $80 million in Virginia Beach and exceeds $86 million across all Virginia communities. All figures are in 2018 dollars. Exhibit 7 supplies summary statistical detail. Exhibit 7:Annual Economic Im.acts •enerated b the Vir:' '. A•uarium Employee Jobs Business sales Compensation Virginia Beach Direct effects 2,533 $48,085,168 $155,559,119 Indirect effects 389 $17,878,604 $57,118,655 Induced effects 340 $13,569,569 $44,326,271 Total 3,261 $79,533,341 $257,004,045 Remainder of Virginia Direct effects - - - Indirect effects 69 $4,405,255 $13,578,922 Induced effects 40 $2,089,250 $6,233,461 Total 109 $6,494,505 $19,812,383 State Total 3,370 $86,027,846 $276,816,428 Source:Sage,IMIPLAN,Virginia Aquarium The Economic Contributions of the Virginia Aquarium 11 Fiscal Impacts Sage used both IMPLAN-generated estimates and analyst computations based on publicly available budget and tax rate information to produce estimates of fiscal impact. In total,the Virginia Aquarium supported more than$7.6 million in tax revenues for the City of Virginia Beach and more than $9 million in tax revenues for the Commonwealth of Virginia in FY2018. That equates to the base salary of more than 170 new police officers, firefighter,or teachers per year in Virginia Beach. Note that these fiscal impacts are not overlapping—they are additive. Exhibit 8 supplies relevant summary detail. Exhibit 8: On.oin• Fiscal Imo acts,FY2018 Location and type of impact Value Virginia Beach Property tax _ $6,256,240 Admissions taxes $771,423 Other taxes2 $470,802 State Sales Tax: Remittance to City $126,055 Total $7,624,520 Remainder of Virginia Income tax $2,018,633 Sales tax $6,565,518 Other Taxes $475,883 Total $9,060,034 Source:Sage,IMPLAN,Virginia Aquarium • Capital Spending Impacts Individual capital outlays take place on a one-time basis. Accordingly,they are modeled separately from ongoing operational expenditures and visitor spending,which take place continuously. From FY2013 to FY2018,the Aquarium generated nearly$26 million in capital expenditures. This includes more than $9 million in building maintenance and in excess of$1.2 million in repairs and renovations. Exhibit 9 indicates how the Aquarium's capital expenditures have shifted from year to year. The last two fiscal years have been associated with especially large-scale capital expenditures. 2 This item consists largely of two separate IMPLAN tax impact categories:other taxes,which includes business licenses and documentary and stamp taxes,and non-taxes,fines,and fees,which includes rents and royalties,special assessments, fines,settlements,and donations. The Economic Contributions of the Virginia Aquarium 12 Exhibit 9: Capital Expenditures over Time,FY 2013—FY 2018 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Source:Virginia Aquarium From FY2013 to FY2018,the Aquarium's capital expenditures supported nearly 270 jobs in Virginia Beach. Those jobs were associated with nearly$15 million in employee compensation and more than $40 million in output. Exhibit 10 supplies relevant summary detail. Exhibit 11 supplies total capital spending-related economic impacts by year. Once again,all figures are presented in 2018 dollars Exhibit 10: One-time Economic Im.acts FY 2013—FY 2018 Lmploy CC j()1,s Output Compensation Virginia Beach Direct effects 162 $10,536,918 $26,477,016 Indirect effects 43 $1,919,063 $5,531,621 Induced effects 63 $2,521,559 $8,234,595 Total 268 $14,977,540 $40,243,232 Remainder of Virginia Direct effects - - - Indirect effects 11 $668,848 $2,474,979 Induced effects 7 $351,992 $1,045,646 Total 18 $1,020,839 $3,520,625 State Total 286 $15,998,379 $43,763,857 Source:Sage,IMPLAN,Virginia Aquarium The Economic Contributions of the Virginia Aquarium 13 • Exhibit 11: One-time Economic Im.acts b Year,FY 2013—FY 2018 Employee Jobs Compensation Output Virginia Beach FY 2013 50 $2,800,152 $7,523,743 FY 2014 23 $1,283,569 $3,448,830 FY 2015 29 $1,619,720 $4,352,033 FY 2016 32 $1,805,285 $4,850,631 FY 2017 67 $3,732,767 $10,029,591 FY 2018 67 $3,736,047 $10,038,404 Total 268 $14,977,540 $40,243,232 Source:Sage,IMPLAN Fiscal Impacts The same methods discussed in the previous section were used to estimate fiscal benefits stemming from capital spending. In total,the Aquarium's capital investments from FY2013 to FY2018 supported more than $520,000 in revenues for the City of Virginia Beach and more than$890,000 in revenues for the Commonwealth of Virginia. Exhibit 12 provides summary statistical detail. Exhibit 12: One-time Fiscal Im.acts,FY 2013—FY 2018 Location and type Val tic of impact Virginia Beach Property Tax $408,667 Other Taxes3 $105,689 State Sales Tax: Remittance to City $8,234 Total $522,590 Virginia Income Tax $382,608 Sales Tax $451,175 Other Taxes $59,830 Total $893,613 Source:Sage,IMPLAN,The Virginia Aquarium,The U.S.Census Bureau,Virginia Beach 3 This item consists largely of two separate IMPLIN tax impact categories:other taxes,which includes business licenses and documentary and stamp taxes,and non-taxes,fines,and fees,which includes rents and royalties,special assessments, fines,settlements,and donations. The Economic Contributions of the Virginia Aquarium 14 Conclusion In FY2018, the Aquarium supported nearly 3,300 jobs, approximately$80 million in worker income, and more than a quarter of a billion dollars in Virginia Beach business sales,much of which were supported by attributable visitor spending. That fiscal year,visitor spending attributable to the Aquarium's presence totaled$172 million. In addition to the impacts generated by operational and visitor spending, the Aquarium supports additional economic impacts via capital spending. From FY2013 through FY2018,the Aquarium generated nearly$26 million in capital spending. This spending supported 268 jobs in Virginia Beach associated with $15 million in worker income. Local business sales were bolstered by more than$40 million once multiplier effects are fully considered. Economic effects beget fiscal ones. In FY2018, the Virginia Aquarium directly and indirectly supported $7.6 million in revenues for the City of Virginia Beach and another$9 million for the Commonwealth of Virginia. The principal source of Commonwealth Revenue took the form of sales tax revenue ($6.57 million). The City of Virginia Beach primarily benefits from enhanced property tax revenues ($6.26 million) The Economic Contributions of the Virginia Aquarium 15 Appendix A— IMPLAN IMPLAN is an economic impact assessment software system. The system was originally developed and is now maintained by the Minnesota IMPLAN Group (MIG). It combines a set of extensive databases concerning economic factors,multipliers and demographic statistics with a highly refined and detailed system of modeling software. IMPLAN allows the user to develop local-level input- output models that can estimate the economic impact of new firms moving into an area as well as the impacts of professional sports teams,recreation and tourism,and residential development. The model accomplishes this by identifying direct impacts by sector,then developing a set of indirect and induced impacts by sector through the use of industry-specific multipliers,local purchase coefficients,income-to-output ratios,and other factors and relationships. There are two major components to IMPLAN: data files and software. An impact analysis using IMPLAN starts by identifying expenditures in terms of the sectoring scheme for the model. Each spending category becomes a"group" of"events"in IMPLAN,where each event specifies the portion of activity allocated to a specific IMPLAN sector. Groups of events can then be used to run impact analysis individually or can be combined into a project consisting of several groups. Once the direct economic impacts have been identified,IMPLAN can calculate the indirect and induced impacts based on a set of multipliers and additional factors. Economic benefits principally take the form of new employment opportunities,associated income and augmented business revenues. These economic benefits include both direct benefits,which are closely associated with the activities that will take place at the Virginia Aquarium and secondary benefits that are associated with foreseeable and calculable multiplier effects. Secondary benefits can be segmented into two types of impacts,indirect and induced. Indirect benefits are related to the business-to-business transactions that take place due to increased demand for goods and services that accompanies augmented investment and business operations. Impacted businesses sell everything from office furniture and copiers to computer and graphic design services. Induced benefits are created when workers directly or indirectly supported by increased economic activity spend their earnings in the local economy. Indirect and induced benefits together comprise total multiplier effects. The hallmark of IMPLAN is the specificity of its economic datasets. The database includes information for five-hundred-and-twenty-eight different industries (generally at the three or four digit Standard Industrial Classification level),and twenty-one different economic variables. Along with these data files,national input-output structural matrices detail the interrelationships between and among these sectors. The database also contains a full schedule of Social Accounting Matrix (SAM) data. All of this data is available at the national,state,and county level. Another strength of the IMPLAN system is its flexibility. It allows the user to augment any of the data or algorithmic relationships within each model in order to more precisely account for regional relationships. This includes inputting different output-to-income ratios for a given industry, different wage rates,and different multipliers where appropriate. IMPLAN also provides the user with a choice of trade-flow assumptions,including the modification of regional purchase coefficients,which determine the mix of goods and services purchased locally with each dollar in each sector. Moreover,the system also allows the user to create custom impact analyses by entering The Economic Contributions of the Virginia Aquarium 16 changes in final demand.This flexibility is a critically important feature in terms of the Sage proposed approach. Sage is uniquely qualified to develop data and factors tailored to this project, and,where appropriate,overwrite the default data contained in the IMPLAN database. A final advantage of IMPLAN is its credibility and acceptance within the profession.There are over five hundred active users of IMPLAN databases and software within the federal and state governments,universities,and among private sector consultants. The following list provides a sampling of IMPLAN users. Sample of IMPLAN Users: Academic Institutions State Government Agencies Alabama A&M University MD Dep't of Natural Resources Albany State University Missouri Department of Economic Development Auburn University California Energy Commission Cornell University Florida Division of Forestry Duke University Illinois Dep't of Natural Resources Iowa State University New Mexico Department of Tourism Michigan Tech University South Carolina Employment Security Ohio State Utah Department of Natural Resources Penn State University Wisconsin Department of Transportation Portland State University Purdue University Private Consulting Firms Stanford University Texas A&M University Coopers&Lybrand University of California—Berkeley Batelle Pacific NW Laboratories University of Wisconsin Boise Cascade Corporation University of Minnesota Charles River Associates Virginia Tech CIC Research West Virginia University BTG/Delta Research Division Marshall University/College of Business Crestar Bank Deloitte&Touche Federal Government Agencies Ernst&Young Jack Faucett Associates Argonne National Lab KPMG Peat Marwick Fed.Emergency Man.Agency(IFMA) Price Waterhouse LLP US Dep't of Agriculture,Forest Service Sage Policy Group,Inc. US Dep't of Ag.,Econ Research Service Economic Research Associates US Dep't of Int.,Bureau of Land Mgmt. American Economics Group,Inc. US Dep't of Int.,Fish and Wildlife Serv. L.E.Peabody Associates,Inc. US Dep't of Int.,National Parks Service The Kalorama Consulting Group US Army Corps of Engineers West Virginia Research League The Economic Contributions of the Virginia Aquarium 17 31 CITY MANAGER'S BRIEFINGS FEDERAL FUNDING FOR THE HOUSING RESOURCE CENTER (PROJECT BASED VOUCHERS) ITEM#68776 4:25P.M. Mayor Dyer welcomed Andrew Friedman, Director—Housing and Neighborhood Preservation. Mr. Friedman expressed his appreciation to City Council for their continued support: ira 61", Federal Funding for the Housing Resource Center City Council Directional Briefing January 8th, 2019 Dept. of Housing and Neighborhood Preservation #L l4311 Here is the Executive Summary and Purpose: Executive Summary & Purpose • We have assembled multiple funding sources, including city funds, to support the activities at the Housing Resource Center • One key Federal funding source requires special arrangements regarding ownership that we think the Virginia Beach Development Authority (VBDA) can fulfill • The value of this Federal funding is over $250,000/year if we can fulfill the requirements • The purpose of this briefing is to identify the issue and determine if council would like to move forward with action on February 5th. January 8, 2019 32 CITY MANAGER'S BRIEFINGS FEDERAL FUNDING FOR THE HOUSING RESOURCE CENTER (PROJECT BASED VOUCHERS) ITEM#68776 The next two (2)slides provide an overview on the operations of the Housing Resource Center: How is the Center Operated? • The Dept. of Housing and Neighborhood Preservation (DHNP) manages the center, except for DHS offices. • DHNP performs some key central functions, including intake and assessment of potential participants • Major functions of the building and its services are contracted out to non-profits and one for-profit corporation • ABM, Inc. manages building operations, maintenance, security, laundry and food service • Samaritan House, Judeo Christian Outreach and others manage actual sheltering within the building. How is the Center operated? (2) • Virginia Supportive Housing, Inc. is under contract to manage the 30 efficiency apartments in the building. These are long-term housing andresidentshave leases, and pay 30% of their income toward rent. • Federal Housing Choice Vouchers can be attached to 24 of the units providing aa rent supplement that will make up most of the cost operations. The approximate annual value of the vouchers is $250,000. • In order to place vouchers there various HUD requirements must be met. We received specific guidance from HUD via letter on December 7th. • The key requirement is that another entity own the building, so that the city is not contracting with itself in regard to the vouchers. January 8, 2019 33 CITY MANAGER'S BRIEFINGS FEDERAL FUNDING FOR THE HOUSING RESOURCE CENTER (PROJECT BASED VOUCHERS) ITEM#68776 The Department of Housing administers over 2,200 Federal Housing Choice Vouchers: Additional Background on Vouchers • The Department of Housing administers over 2,200 federal vouchers city-wide. • Most vouchers are assigned to a person, who needs to find a willing landlord and a qualified unit to use it • Vouchers can also be attached to specific buildings or portions thereof, under HUD regulations • The department has these arrangements in multiple places in the city • This arrangement is different because we want to place the voucher in a building we own. Staff's most favorable option is a "Fee-simple title transfer"to the Development Authority: Staff Review of Options re: Ownership • Desirable to have a closely related organization • Fee-simple title transfer is most desirable - "condominium-ization" would be complex and require additional expense and time • VBDA owns the Dept. of Social Services building for a very similar reason; that has worked well • Transfer of ownership would have no effect on operations; city and VBDA would sign an agreement regarding all operations and funding. January 8, 2019 34 CITY MANAGER'S BRIEFINGS FEDERAL FUNDING FOR THE HOUSING RESOURCE CENTER (PROJECT BASED VOUCHERS) ITEM#68776 Here is the Process for Consideration: Process for Consideration • Staff briefed the development authority board in September, 2018 about this possibility. • Depending on today's direction from Council, we will brief the VBDA board again at its meeting on January 15th. • If council and VBDA provide approval, we will bring an ordinance to Council for your consideration on February 5th • The actual transfer would then be carried out as soon as possible, and then the vouchers could begin to be utilized. Your Feedback Requested 1) What concerns do you have? 2) What additional information, if any, do you need to make a decision? 3) Should staff move forward with briefing VBDA and then proposing an ordinance for your consideration on February 5th? January 8, 2019 35 CITY MANAGER'S BRIEFING FEDERAL FUNDING FOR THE HOUSING RESOURCE CENTER (PROJECT BASED VOUCHERS) ITEM#68776 Thank you ! Housing Center Learn more: www.vbgov.com/housinq Andrew Friedman, director Dept. of Housing and Neighborhood Preservation afriedma@vbqov.com 757-385-5752 Mayor Dyer expressed his appreciation to Mr. Friedman for the presentation and requested consensus from City Council to move forward. January 8, 2019 36 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 4:30 P.M. Mayor Dyer welcomed Charles (CJ)Bodnar, P.E., Stormwater Engineering Center—Public Works. Mr. Bodnar expressed his appreciation to City Council for their continued support: U' , t i City of Virginia Beach .r Yu r ��• Stormwater Master Plan Update City Council Briefing—January 8,2019 ____//.......°.---\.,,,s.....______________--------------s 1 19tormwater Neater plan update Jaruary 9.2016 Here is today's Agenda: Agenda • Background for Update • Stormwater Modeling and Calibration • Visualizations of Results • Next Steps _____/*°°°.....\,,....______________----------- 2slonwxer x,ate.vian uveae iana. n.zm6 January 8, 2019 37 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) Here are a few of the questions Moody's Investors Services asked Virginia Beach recipients on their questionnaire in 2015: Bond Rating Agency Questions to VB eview s Update/Coastal VA Credit F • Does the existing/future CIP include spending �___ ` for mitigation or resiliency? • Has your governing body discussed the capital or financial implications of rising sea levels? MoodysWarrisat ssto Address Climate Risks or Face • Has there been an estimate on potential impacts Downgrades from rising sea levels or flooding? • Please discuss how flooding has impacted the city's - • • • - budget and 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? This graphic depicts the flooding near Ocean Park during a 100-Year storm using the Stormwater Conveyance Model: Combined Impact on Stormwater Analysis • Higher coastal water levels diminish stormwater system performance g./. ° �" °� • Coastal 'a a sd * z.... „`- Flooding % 8 • ° '%*"..i .: .0°5°0•: oma o°° ° _' • '° o • • Stormwater Conveyance tua. W ' Legend Smith ° • • • • Combined Flooding January 8, 2019 38 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) The Stormwater Master Plan was last updated in 1990: Last Approved Stormwater Master Plan Petah. STORMWATER � harm �_ MANAGEMENT PLAN 41 SOWIV CDM Current Master Plans date from the late 1980s to early 1990s 5•Stonnwner Master Plan Update Jai,uary A.)019 Here is an overview of the proposed updates in the Stormwater Master Plan: Stormwater Master Plan —Why update? • Update stormwater system inventory _ • Create computer models of the • —;"` current stormwater system utilizing _f readily available software wawa • Assess performance of stormwater ' r ® r system I®, -'k.4 ."“C�-@ — Flood control > �'.#. — Stormwater quality • Identify deficiencies in the o A°o stormwater system o o 0 • Determine needed improvements o? • Provide information for project designs • Create Comprehensive Stormwater Management Plans where possible S I Stormwater Master Plan Update January 8 F016 January 8, 2019 39 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) Stormwater modeling is being performed in 31 drainage basins. The basins outside of the Southern Rivers will use the PCSWMM modeling engine and the Southern Rivers will use the MIKE modeling program which calculates the effects of wind: Stormwater Modeling • drainage basins.effort eing performed in all 31 • Models,with the exception of the Lower -41111r No4.0 Southern Rivers,are being prepared in WO PCSWMM,the"gold standard"for modeling. PCSWWM uses EPA SWMM as its engine. • Models for the Lower Southern Rivers r _ are being prepared in the MIKE suite of programs which allows for the inclusion i of the effects of wind into the modeling parameters. J I�.,m..t.,Naat,,Plan Up•at.Janua!y 8.1019 Here are additional key points to the Stormwater Modeling update: Stormwater Modeling (continued) • Models include the Primary Stormwater System. Primary stormwater system includes: • Stormwater pipes larger than 24-inches in diameter; • Stormwater management facilities(ponds and lakes); • Natural conveyance systems(ditches/swales/canals). • Models are being prepared for 1-,2-, 10-,25-,50-, 100-and 500-year storm events under the current standards using recurrent tailwater elevations. Models are also being prepared for 1.5-and 3-feet of sea level rise. • When new standards are adopted,the models will be updated to reflect the new standards. 8 I Stonnwater Naabr PL.UpOat.l.nuai y N.?L,S January 8, 2019 40 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) Here is an overview of the hydraulics in the Thalia Creek area using the PCSWMM Model: Hydraulics (View in PCSWMM) , yam (Eat Junction nod. 111¶= Subeaten load point (storage node) 1n • Irtegularcondult (channel) .. Overflow conduit • ISTLeva..d.awawWiae .ua.e 9 3lormwater Nectar Plan UVdrta January B.241R In the 1990 model, there were 49 nodes and 58 conduits; the 2018 model incorporates 3,184 nodes and 13,762 conduits: Mak s ...— , er 77. I1O \ r s^' w O O O O O'O O• O y 9 00 � 1990 Model Schematic 2018 Model Schematic: 46 nodes 3,184 nodes 58 conduits 13,762 conduits Comparison of Previous to Current 10I aormmalar Naaler Plan uc.at•January e,201 January 8, 2019 41 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) This depicts a simulation of flooding in Windsor Woods with a 2-D grid: Hydraulics (2-D Area) • 20 Grid • tt StomwM.rMa.t.r Plan Upd.t.January 9.201+ �I pw)tr1.MrpMri.ewn+ The validation process compares the model with photographs of the area during storm events to ensure accuracy of the model: Validation/Calibration Photo•raphs 4. kl{' 12IStnnnw.t.rU11•I.1 Plan Uatl.t.Januarys,NIB email: stomlpics@vbgov.com January 8, 2019 42 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) Here are the Calibration/Validation Results with models matching storm events: CalibrationNalidation Results Table 34 September 19.2016 flood Elevations at 10.W AM(Revised Model( Rood 1levaans(tees ID location 6900( Dena Observed 6boN N Rosemont Road between Old tome Road era 5.7 S.7 0.0 Club lode Rood 2 Roseman Road between Old forge Read and 5.7 5.7 OL pub Neu%RoaO 3 00%mae Rood non St.lands Cb1ltb 5.7 5.7 0.0 7 SOLAR Pius Tran and Ware Green Oadevard 5.9 3.9 4.1 6 Sane Drive end Palace Grwn 9atdevard 5.7 53 CI 7 9WIi9Ma Otl.e NA of Palace Green II outward SA 5.11 0.0 i Seine Ode north of Windom Woods brrlavard 60 U 4.2 9 Selma Oma north of Colon*Paewry 5.7 6.0 0.5 10 •erdwood C000.ol south of Cortland tae 6.5 6.4 4.1 Il South boulevard wed of 4entwoOd Crescent 6.6 6.4 .12 17 Lalw Welds.non Sand 9oolvad 5.2 S.1 Al 17 South 90Yvrd near lake 1M Msor S.1 5.1 0.0 14 South Ple%T, tabs of the Presidential Carvel 6.1 SI 03 Average delta(feet)=-0.05 13 1 Stwmwaa Ra4r Plan Update January 0 2019 The ArcGIS Map will be integrated into the City's GIS Map to allow citizens to visualize flooding in neighborhoods based on 10, 100 and 500-Year Storm events: ArcGIS Online Results Map • Online Map Link tl Stnrmww.Nol.t Plan Updx\rye January 8, 2019 43 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) Video Animations were shown to provide examples of the information the modeling will provide: 2D Model Animation • PCSWMM-Windsor Woods Yr 4 g ..• =`f t •• w. r. t ifs ..$r r. ; 1 e 463. 15 51onnrvaler Maaler Plan UpOae J<nuery P.N119 2D Model Animation (continued) • MIKE-Lower Southern Rivers 4� Y IP -'V-=, i i s fP January 8, 2019 44 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) Modeling efforts began in May 2015 and will be complete by September 2019: Comprehensive Master Plan Integration of multiple stormwater issues • Modekng effort began in gr, May 2015. �► •As of December 31,2018, • 22 of 31 drainage bass + "_ have completed models. int 10 of the 22 have been " validated and calibrated. • By September 2019,al drainage basin models MI be complete. email stormpics jvbgouaom Here are the Next Steps: Next Steps • Briefing on SLR(January 15,2019). • Complete modeling of all basins. • Kimley-Horn has been hired to prepare the master plans based on the models(both with and without the SLR results). This effort will begin in early 2019 and anticipated completion is scheduled by January 2022. The master plans will be used to inform the CIP program which projects are the highest priority. • Upon completion of the master plans,PW-SWEC will coordinate establishing a Comprehensive Stormwater Management Plan with DEQ to govern storm drainage in Virginia Beach. 161 9tormwatx Maatar Plan Update lanunry R.]U12 January 8, 2019 45 CITY MANAGER'S BRIEFINGS STORMWATER MODELING ITEM#68777 (Continued) DISCUSSION • titeft. ...:z.... • email: stormpics@vbgov.com IS 9mnmxtl.r waster Nan Update January e.2015 Mayor Dyer expressed his appreciation to Mr. Bodnar for the presentation. January 8, 2019 46 CITY MANAGER'S BRIEFINGS GOAL SETTING WORKSHOP RETREAT DISCUSSION ITEM#68778 5:12 P.M. David L. Hansen, City Manager,presented City Council with a template of topics for the City Council Workshop Retreat scheduled for February 11-12, 2019, a copy of which is attached hereto and made a part of the record. Mr. Hansen requested those members of City Council that wish to hold public hearing prior to Council's Retreat to complete the attached questionnaire and return to him: Strategic Pathway to hdusiveness,Ti an spa ren cry,Engagement to Shape the City of Virginia Beach's future ConsW Cauert StAlw3C.19 anti s« CaK?Cc I mu:* av INsofl 40.414414 4.1 Ne*lies .**** ice# 'ic'$!'i� • 5&JM4 ;s *tiO*IOW OttS **WS w stems 0,44.4 4)11" 1 0.104.1 Sr7ki 14 lied OA*. teed tcri PeriartrirdWorieorce +!'99 i9 •A 12 3 x • .. ,400 kA m•s Asrsur.di•t,10 Council Member Henley recommended removing the Envision 2040 topic from the template of the topic sheet since that has not been part of past Council Retreats. Council Member Wilson advised how helpful it was in the past to have a round table workshop with citizens prior to the retreat. Mr. Hansen requested a date and the format so he can organize. Council Member Rouse recommended all Council Members visit each District together to hold public engagement with District citizens in an effort to understand each areas comments and concerns. Vice Mayor Wood advised it is critically important to engage with citizens but keep the current schedule in order to keep City Council going forward in order to provide direction to the five (5) Council Appointees. Council Member Kane advised she is comfortable with the suggested format change for the retreat and also feels it is imperative to provide clear direction for staff with a true strategic planning retreat that ends with an accountability plan for staff to have outlining City Council expectations. January 8, 2019 47 CITY MANAGER'S BRIEFINGS GOAL SETTING WORKSHOP RETREAT DISCUSSION ITEM#68 778 (Continued) Council Member Abbott recommended having a vote after the Retreat in order to have the direction of the body part of the record. Council Member Abbott also feels the retreat needs to be live streamed for the public. Additionally, she requested a summary of the interviews/public input received with other Council Members input in order to do independent research and be prepared prior to the retreat. Mayor Dyer advised during his campaign that he was able to hold public engagement with each District within ten (10) days and it was helpful to see the different concerns of each District. Mayor Dyer continued to express the importance of meaningful dialogue, unity and transparency. January 8, 2019 U 0":" ..4.a 0 a = o CO ato Q U a) +m� m ® ca +- c C o U a) o°es U N W E CD 40.0 c N W - s - d N = a wE a C a) a D - v CN cc; • a ' 2. cn0 f > /' ami U) 0› C C 0 .0 * c a tip O � NI An Cri liZIP ® � O is > 0 4=0co sa. N 42 TD U) > CI_ 4-0U (1) a c o 0 Irl us •E. as a LI® H m m 0 cn c C) v O _ = m 0 SSD N to M O O c6 112 N 0 oU 0 = m .0 2 •> }' a) a> u_ c E � w .� z + c 'en U • J O > o 0 `""c �: Public Meeting o - :r Interest Survey ;'-",,..........- Name: "OFOURNI•....- Name: Are you planning to host a community meeting within the next two months? ❑ Yes ❑ No ❑ Undecided If you have any specific dates in mind, please list them below. Do you have a location preference? (Check all that apply) ❑ Schools ❑ Libraries ❑ Rec Centers El Other (Please specify) Is there a certain day or days of the week you prefer? (Check all that apply) El Monday ❑ Tuesday ❑ Wednesday ❑ Thursday El Friday ❑ Saturday ❑ Sunday Is there a time of day you prefer? (Check all that apply) ❑ Morning ❑ Afternoon ❑ Evening What format(s) would you like to use? (Check all that apply) ❑ Dialogue (member and audience) ❑ Facebook live ❑ Presentations with Q&A ❑ Survey platform (PublicInput.com) ❑ Facilitated tables (workshop style) ❑ Other (Please specify) ❑ Timed Comments What, if any, staff support would you like? 48 CITY COUNCIL LIAISON REPORTS ITEM#68779 5:35 P.M. There were no Liaison Reports. January 8, 2019 49 CITY COUNCIL COMMENTS ITEM#68780 5:35 P.M. Council Member Abbott provided a copy of a proposed ordinance to adopt a revised City Council Speaker Policy to be considered on January 15`". The amended policy will allow the Open Dialogue sessions to be televised and live streamed. Council Member Abbott advised if anyone would like to sponsor or had input to let her know. January 8, 2019 .. : - rii ,....,,,,, „....,....„, CITY OF VIRGINIA BEACH AGENDA ITEM j ITEM: An Ordinance Approving and Adopting a Revised Policy Pertaining to Speakers at City Council Meetings MEETING DATE: January 15, 2019 ■ Background: On March 11, 2003, City Council adopted a policy entitled, "Time Limits for Speakers at City Council Meetings." The policy permitted public comment only on items included in Council's agenda. On September 14, 2004, City Council amended the policy to allow public comment on items that are not on Council's agenda. Public comment on non-agenda items is allowed at the end of the first formal session of each month. Although other portions of the formal Council meeting are televised, the current policy provides that public comments on non-agenda items shall not be televised. ▪ Considerations: Citizens who address the City Council on non-agenda items often speak of important matters that impact other citizens, and residents who watch Council meetings via television or online streaming would benefit from hearing their fellow citizens' concerns. The attached revised policy provides that public comment on non-agenda items will be televised. Because the same video feed that is used for television is also used for online streaming, viewers on both platforms would be able to see and hear the public comments on non-agenda items. at Public Information: This item will be advertised in the same manner as other agenda items. ■ Attachments: Ordinance, Revised Policy Requested by Councilmember Abbott 1 AN ORDINANCE APPROVING AND 2 ADOPTING A REVISED POLICY 3 PERTAINING TO SPEAKERS AT CITY 4 COUNCIL MEETINGS 5 6 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 7 BEACH, VIRGINIA: 8 9 That the City Council hereby approves and adopts the revised policy entitled 10 "Time Limits for Speakers at City Council Meetings," dated January 15, 2019, which 11 policy has been exhibited to the City Council, and a true copy of which is on file in the 12 City Clerk's Office. 13 14 Adopted by the City Council of Virginia Beach, Virginia on this day of 15 January, 2019. APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA 14590 R-1 December 7, 2018 0141A BEq Ws- 7r- •rj UROUR•MRTUjSe4 City Council Policy Title: Time Limits for Speakers at City Council Meetings Date of Adoption:March 11,2003 Dates of Revisions:September 14,2004 Page 1 of 3 March 27,2007 February 12,2008 March 24,2009 Proposed Revision:January 15,2019 1.0 Purpose and Need The purpose of this policy is to provide reasonable,workable time limits for speakers at City Council meetings.The need for such a policy was determined by the City Council at its retreat on February 18, 2003.The policy is intended to recognize and accommodate the mutual interests of persons desiring to speak at City Council meetings,the value to the City Council of public comment, and the need for the City Council to conduct business in an orderly, expeditious manner. This policy shall not apply to the discussion of agenda items by members of the City Council during City Council meetings or to City Staff members acting in such capacity. 2.0 Time Limits 2.1 Planning Agenda Items (a) Planning Agenda items include rezonings,conditional zonings,conditional use permits,land use plan approvals,code and Comprehensive Plan amendments,nonconforming use resolutions,street closures and any other items for which a public hearing is required pursuant to Chapter 22 of Title 15 of the Virginia Code. (b)The applicant,or representative of the applicant(generally,an attorney,professional engineer or other professional retained by the applicant) shall be allowed ten minutes for his or her initial presentation and an additional three minutes for rebuttal if any opponents of the application have spoken. (1) If there is more than one applicant(as, for example, when both the property owner and proposed developer are applicants) or if the applicant and representative both desire to speak, only one of them shall be allowed to speak for ten minutes. Upon request, however, the presiding officer may allow them to divide their time equally, so long as the total time of their initial presentation does not exceed ten minutes. (2) Speakers addressing the City Council in a representative capacity shall not be allowed additional time in which to speak on his or her own behalf. (c)All other persons speaking in support of the application shall be allowed three minutes,and shall not be entitled to speak in rebuttal of any opposition comments. (d)Opponents of an application shall be allowed three minutes each. In the event the opponents are represented by an attorney,engineer or other professional whose profession includes,as a customary Title: Time Limits for Speakers at City Council Meetings Date of Adoption:March 11,2003 Dates of Revisions: September 14,2004 Page 2 of 3 March 27,2007 February 12,2008 March 24,2009 Proposed Revision:January 15,2019 part thereof,appearing before governmental bodies in a representative capacity,such representative shall be allowed ten minutes.In such cases,persons represented shall be encouraged not to provide additional comments. (1)Only one speaker in opposition to the application shall be allowed ten minutes to speak.If there is more than one representative described in subsection(d),only one of them shall be allowed to speak for ten minutes. Upon request, however, the presiding officer may allow them to divide their time equally, so long as the total time of their presentation does not exceed ten minutes. (e) Opponents of an application shall not be entitled to address the City Council in rebuttal of any statements or other material provided to the City Council during the applicant's rebuttal. 2.2 Regular Agenda Items (a) Regular agenda items include all other agenda items at which public comment is allowed. (b) Each speaker,whether or not in a representative capacity, shall be allowed three minutes. 2.3 Comment on Non-Agenda Items (a) Time shall be allotted after the conclusion of the first formal session of each month for aern- televised public comments on non-agenda items. (b) Each speaker,whether or not in a representative capacity, shall be allowed three(3)minutes. (c)No more than three(3)speakers may speak on the same non-agenda topic at the same meeting. The first three(3)speakers who register with the City Clerk will be called to speak. (d) If more than three(3)speakers request an opportunity to speak on the same non-agenda topic, the City Clerk shall deny the request and advise those persons of the limits contained in this policy. The City Clerk shall also advise such persons that comments may be submitted at writing at any time for distribution to City Council and that citizens are welcome to contact the City Clerk's to register in advance to speak at the following month's meeting. 3.0 Timekeeping;Written Material (a)The City Clerk shall keep time for each speaker in accordance with the provisions of Section 2, and shall verbally notify the speaker and presiding officer at the expiration of the time allowed for each speaker. (b)Written comments or other material may be tendered to the City Clerk by any person desiring to do so. 4.0 Modification of Time Limits (a)The presiding officer,with the consent of the City Council, may extend or reduce any of the time limits set forth in Section 2. Title: Time Limits for Speakers at City Council Meetings Date of Adoption:March 11,2003 Dates of Revisions: September 14,2004 Page 3 of 3 March 27,2007 February 12,2008 March 24,2009 Proposed Revision:January 15,2019 (b) The time limits for speakers set forth in Section 2 shall be exclusive of the time taken in responding to questions of members of the City Council. 5.0 Registration of Speakers Any person desiring to address the Council shall register with the City Clerk prior to the opening of the meeting. The inadvertent failure to do so shall not, however, disqualify any person from speaking. 6.0 Public Notice of Policy In accordance with City Code Section 2-41,this policy shall be included on the City's internet web site, posted outside of the City Council Chambers, and published in the City Council agenda for each regular meeting. 50 CITY COUNCIL COMMENTS ITEM#68781 (Continued) Council Member Abbott provided a copy of a proposed Resolution that begins the process for district voting to be added to the Legislative Package for a Referendum for the 2020 election. January 8, 2019 , _ _ _ __ ______ _ ( .,,.... f,c,,,,....*,,;,, iste.------, ,,...x;c; Iii."1 4 6 ‘,....127(vii CITY OF VIRGINIA BEACH AGENDA ITEM ITEM: A Resolution Requesting the Circuit Court to Order that a Referendum Election Be Held on November 3, 2020 on the Question of Whether the Members of City Council Who Represent Each of the City's Seven Residence Districts Should Be Elected on a District-Basis Rather than an At-Large Basis MEETING DATE: January 15, 2019 t Background: In 1966, the General Assembly amended the City Charter to provide that the City Council "shall consist of eleven members, one to be elected by the city at large from among the residents of the seven boroughs and four to be elected by and from the city at large." Subsequent charter revisions substituted the term "districts" for "boroughs" and provided that the mayor shall be directly elected by the voters, but no change has been made to the requirement that all councilmembers be elected on an at- large basis. ® Considerations: District-based voting systems could enhance councilmembers' accountability to district residents, would better ensure that district members represent the interest of their district constituents, and could also reduce campaign costs which would lessen a barrier faced by potential candidates who otherwise would need to finance a City-wide campaign. A change to district-based voting could result in a more diverse City Council that better reflects the changing demographics of the City. The City Charter authorizes the City Council to request an advisory referendum initiated by a resolution to the circuit court. Historical data show that the highest level of voter turnout occurs during presidential elections, when both houses of Congress are also on the ballot. Higher turnout would provide City Council with a more reliable indicator of the will of Virginia Beach citizens than if the referendum were held in a year without such an election. Accordingly, the resolution requests that an advisory referendum election be held on November 3, 2020. • Public Information: Public information will be provided through the normal Council agenda process. ▪ Attachments: Resolution and Ordinance ("Exhibit A"). Requested by Councilmember Abbott REQUESTED BY COUNCILMEMBER ABBOTT 1 A RESOLUTION REQUESTING THE CIRCUIT COURT TO 2 ORDER THAT A REFERENDUM ELECTION BE HELD ON 3 NOVEMBER 3, 2020 ON THE QUESTION OF WHETHER 4 THE MEMBERS OF CITY COUNCIL WHO REPRESENT 5 EACH OF THE CITY'S SEVEN RESIDENCE DISTRICTS 6 SHOULD BE ELECTED ON A DISTRICT-BASIS RATHER 7 THAN AN AT-LARGE BASIS 8 9 WHEREAS, in 1966, the General Assembly adopted an Act of Assembly that 10 amended the City Charter to provide that the City Council "shall consist of eleven 11 members, one to be elected by the city at large from among the residents of the seven 12 boroughs and four to be elected by and from the city at large;" and 13 14 WHEREAS, subsequent charter revisions substituted the term "districts" for 15 "boroughs" and provided that the mayor shall be directly elected by the voters, but no 16 change has been made to the requirement that all councilmembers be elected on an at- 17 large basis; and 18 19 WHEREAS, in 1994, a referendum election was held in which a majority of voters 20 supported a charter change to require that the seven districts be of roughly equal 21 population and that district members be elected on a district basis rather than by all of the 22 City's voters; and 23 24 WHEREAS, in 1995, the General Assembly amended the City Charter to provide 25 for roughly equal residence districts, but instead of providing for district voting, the charter 26 amendment required a new referendum election on the sole question of whether district 27 members should be elected only by district residents; and 28 29 WHEREAS, in 1996, the new referendum election was held, and a majority of 30 persons voting opposed the proposed change to have district members elected only by 31 district residents; and 32 33 WHEREAS, district-based voting systems could enhance councilmembers' 34 accountability to district residents, would better ensure that district members represent 35 the interest of their district constituents, and could also reduce campaign costs which 36 would lessen a barrier faced by potential candidates who otherwise would need to finance 37 a City-wide campaign; and 38 39 WHEREAS, a change to district-based voting could result in a more diverse City 40 Council that better reflects the changing demographics of the City; and 41 42 WHEREAS, City Charter § 3.05(f) authorizes City Council "[t]o provide for the 43 submission of any proposed ordinance to the qualified voters of the city at an advisory 44 referendum to be initiated by a resolution to the circuit court of the city and held . . . in the 45 manner provided for by law for general elections"; and 46 47 WHEREAS, City Council is of the opinion that a referendum election should be 48 held on this issue during the November 3, 2020 general election because historical data 49 show that the highest level of voter turnout occurs during presidential elections, where 50 both houses of Congress are also on the ballot, and the anticipated higher turnout for 51 such an election would provide City Council with a more reliable indicator of the will of 52 Virginia Beach citizens than if the referendum were held in a year without such an 53 election. 54 55 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 56 OF VIRGINIA BEACH, VIRGINIA: 57 58 1. That, pursuant to § 3.05(f) of the Charter of the City of Virginia Beach, the 59 Circuit Court of the City of Virginia Beach is hereby requested to order an election to be 60 conducted in accordance with Code of Virginia §§ 24.2-682 and 24.2-684 and held on 61 November 3, 2020 to take the sense of the qualified voters of the City on the question of 62 whether the City Council should adopt an ordinance requesting a change to the City 63 Charter that would provide for the election of councilmembers who represent each of the 64 City's seven residence districts only by voters who reside in the respective residence 65 districts, as opposed to the current system of at-large voting. 66 67 2. That the question to appear on the ballot shall read as follows: 68 69 Should the City Council adopt an ordinance requesting a change to 70 the City Charter that would provide for the election of councilmembers 71 who represent each of the City's seven residence districts only by 72 voters who reside in the respective residence districts, as opposed to 73 the current system of at-large voting? 74 75 Yes No 76 77 3. That, if a majority of voters voting at the election approve the question set 78 forth above, any ordinance that may be adopted by the City Council shall be substantially 79 similar to the proposed ordinance attached hereto as "Exhibit A;" 80 81 4. That a copy of the proposed ordinance shall be made available for 82 inspection at the City Clerk's Office, on the City's website, and all public libraries and 83 recreation centers within ten days of the passage of this resolution. Furthermore, the City 84 Clerk shall fax or email a copy of the proposed ordinance to any citizen upon request; 85 and 86 2 87 5. That the City Attorney is hereby directed to file a certified copy of this 88 resolution, along with an appropriate petition and order, with the Circuit Court of the City 89 of Virginia Beach for such an election to be held on November 6, 2012. 90 91 Adopted by the City Council of the City of Virginia Beach, Virginia, this day 92 of , 2019. APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA14602 R-1 January 4, 2019 3 EXHIBIT A 1 AN ORDINANCE REQUESTING A CHANGE TO THE CITY 2 CHARTER THAT WOULD PROVIDE FOR THE ELECTION 3 OF COUNCILMEMBERS WHO REPRESENT EACH OF THE 4 CITY'S SEVEN RESIDENCE DISTRICTS ONLY BY 5 VOTERS WHO RESIDE IN THE RESPECTIVE RESIDENCE 6 DISTRICTS, AS OPPOSED TO THE CURRENT SYSTEM 7 OF AT-LARGE VOTING 8 9 WHEREAS, a majority of the qualified voters of the City of Virginia Beach who 10 voted at an advisory referendum held on November 3, 2020, expressed support for City 11 Council's adoption of an ordinance requesting a change to the City Charter that would 12 provide for the election of councilmembers who represent each of the City's seven 13 residence districts only by voters who reside in the respective residence districts. 14 15 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 16 VIRGINIA BEACH, VIRGINIA: 17 18 That City Council hereby requests that the General Assembly amend the City's 19 Charter to provide for the election of councilmembers who represent each of the City's 20 seven residence districts only by the voters who reside in the respective residence 21 districts. 22 23 Adopted by the Council of the City of Virginia Beach, Virginia, on the day of 24 , 2020. APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA14603 R-1 January 4, 2019 51 CITY COUNCIL COMMENTS ITEM#68782 (Continued) Council Member Henley advised next week there are two (2)planning items on the agenda that'has opposition with concern to specific conditions; Short Term Rentals and Piney Grove Baptist Church request for modifications. Council Member Henley requested staffprovide a report in her Friday Package providing information on how conditions are enforced. January 8, 2019 52 AGENDA REVIEW SESSION ITEM#68783 5:40 P.M. There were no items on the Legislative CONSENT AGENDA as only one (1) item is to be considered. January 8, 2019 53 ITEM#68784 Mayor Robert M. Dyer entertained a motion to permit City Council to conduct its CLOSED SESSION, pursuant to Section 2.2-3711(A), Code of Virginia, as amended,for the following purpose: PUBLICLY HELD PROPERTY: Discussion or consideration of the acquisition of real property for public purpose, or of the disposition of publicly held property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body pursuant to Section 2.2-3711(A)(3) • Princess Anne District PERSONNEL MATTERS: Discussion, consideration, or interviews of prospective candidates for employment, assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees of any public body pursuant to Section 2.2-3711(A)(1) • Council Appointments: Council, Boards, Commissions, Committees, Authorities, Agencies and Appointees January 8, 2019 54 ITEM#68784 (Continued) Upon motion by Council Member Kane, seconded by Council Member Abbott, City Council voted to proceed into CLOSED SESSION at 5:42 P.M. Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss Closed Session 5:42 P.M. —5:59 P.M. January 8, 2019 55 FORMAL SESSION VIRGINIA BEACH CITY COUNCIL January 8, 2019 6:00 P.M. Mayor Dyer called to order the FORMAL SESSION of the VIRGINIA BEACH CITY COUNCIL in the City Council Chamber, City Hall, on Tuesday, January 8, 2019, at 6.•00 P.M. Council Members Present: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard,Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss Ill INVOCATION: Reverend Brent Hobbs Senior Pastor, New Song Fellowship PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA Council Member Rosemary Wilson DISCLOSED that she is a real estate agent affiliated with Howard Hanna Real Estate Services ("Howard Hanna'), whose Oceanfront Office is located at 303 34`x' Street Suite 102, Virginia Beach, VA 23451. Because of the nature of realtor and real estate agent affiliation, the size of Howard Hanna, and the volume of transactions it handles in any given year, Howard Hanna has an interest in numerous matters in which she is not personally involved and of which she does not have personal knowledge. In order to ensure her compliance with both the letter and the spirit of the State and Local Government Conflict of Interests Act (the `Act"), it is her practice to thoroughly review the agenda for each meeting of City Council for the purpose of identifying any matters in which she might have an actual or potential conflict. If, during her review of the agenda for any given meeting of the Council, she identifies a matter in which she has a `personal interest, "as defined in the Act, she will file the appropriate disclosure letter to be recorded in the official records of the City Council. Council Member Wilson regularly makes this disclosure. Her letter of February 20, 2018, is hereby made part of the record. January 8, 2019 56 Council Member Rosemary Wilson also DISCLOSED she has a personal interest in Dixon Hughes Goodman and receives income from the firm as a result of her late husband's employment. The income is proceeds from the sale of his partnership interest,paid out over an extended period of time. She is not an employee of Dixon Hughes Goodman, does not have any role in management of the company and does is not privy to its client list. However, due to the size of Dixon Hughes Goodman and the volume of transactions it handles in any given year, Dixon Hughes Goodman may have an interest in matters of which she has no personal knowledge. In that regard, she is always concerned about the appearance of impropriety that might arise if she unknowingly participates in a matter before City Council in which Dixon Hughes Goodman has an interest. In order to ensure her compliance with both the letter and spirit of the State and Local Government Conflict of Interests Act (the `Act'), it is her practice to thoroughly review each City Council agenda to identify any matters in which she might have an actual or potential conflict. If, during her review of an agenda, she identifies a matter in which she has a "personal interest", as defined by the Act, she will either abstain from voting, or file the appropriate disclosure letter with the City Clerk to be included in the official records of City Council. Council Member Wilson's letter of June 2, 2015, is hereby made a part of the record. January 8, 2019 57 ITEM— VI-E CEREMONIAL OATH OF OFFICE ITEM#68785 The Honorable Leslie L.Lilley, Presiding Judge, Virginia Beach Circuit Court,DELIVERED the Oaths of Office to the newly elected and re-elected Members of City Council: Barbara M Henley District 7-Princess Anne Louis R.Jones District 4—Bayside David Nygaard District 6—Beach Aaron R. Rouse At Large James L. Wood District 5—Lynnhaven 4 Year Term January 1, 2019—December 31, 2022 Sabrina D. Wooten District 1 - Centerville 2 Year Term January 1, 2019—December 31, 2020 January 8, 2019 VIRGINIA: IN THE VIRGINIA BEACH CIRCUIT COURT CLERK'S OFFICE OATH I, Barbara M. Henley, do solemnly swear (or affirm) that I will support the Constitution of the United States, and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge all the duties incumbent upon me as a member of the Virginia Beach City Council—Princess Anne District for a 4 year term beginning January 1,2019, according to the best of my ability, (so help me God). //) CJ?(A • Signature of Person Taking Oath//udiAz ..., Oath taken and subscribed to before me on ciDR. Tina E. Sinnen, Clerk AA ► Jr w By: Deputy CI:rk I City of Virginia Beach 12/20/2018 02:05:11 PM CO OATH Tina E. Sinnen, Clerk • VIRGINIA: IN THE VIRGINIA BEACH CIRCUIT COURT CLERK'S OFFICE OATH I, Louis R. Jones, do solemnly swear (or affirm) that I will support the Constitution of the United States, and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge all the duties incumbent upon me as a member of the Virginia Beach City Council, Bayside District, for a four year term beginning January 1,2019,according to the best of my ability, (so help me God). *,...,,i 0 Signature of Perso aking Oath Oath taken and subscribed to before me on Oletixb.ch ,Z8 , 20 I i Tina E. Sinnen, Clerk s --. .___Zt_0— C." ' • 4,X4LeA...). By: .Deputy Clerk VIRGINIA: IN THE VIRGINIA BEACH CIRCUIT COURT CLERK'S OFFICE OATH I, David Nygaard, do solemnly swear (or affirm) that I will support the Constitution of the United States,and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge all the duties incumbent upon me as a member of the Virginia Beach City Council —Beach District for a four year term beginning January 1, 2019 and ending December 31, 2022, according to the best of my ability, (so help me God). .11 °44: an :7 Signature of Person Taking Oat Oath taken and subscribed to before me on December 14, 2018. Tina E. Sinnen, Clerk f DVQ By: eputy Clerk City of Virginia Beach 12/20/2018 11:31:34 AM CO OATH Tina E. Sinnen, Clerk VIRGINIA: IN THE VIRGINIA BEACH CIRCUIT COURT CLERK'S OFFICE OATH I, Aaron Rouse, do solemnly swear (or affirm) that I will support the Constitution of the United States,and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge all the duties incumbent upon me as a member of the Virginia Beach City Council,At-Large for a four year term beginning January 1, 2019, according to the best of my ability, (so help me God). Signature of Person Taking Oath Oath taken and subscribed to before me on �. a , 93/7 . Tina E. Sinnen, Clerk tL & # Jur_ Lc• By: Deputy 'le City of Virginia Beach 12/20/2018 11:24:00 AM CO OATH Tina E. Sinnen, Clerk VIRGINIA: IN THE VIRGINIA BEACH CIRCUIT COURT CLERK'S OFFICE OATH I, James L. Wood, do solemnly swear (or affirm) that I will support the Constitution of the United States, and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge all the duties incumbent upon me as a member of the Virginia Beach City Council, Lynnhaven District, for a four year term beginning January 1, 2019, according to the best of my ability, (so help me God). 1 Signaii.f Person Taking Oath Oath taken and subscribed to before me on O.ie ,I1&&. 27 , 20(8 . Tina E. Sinnen, Clerk By: Deputy Clerk NOMIWARIPM1 City of Virginia Beach 12/27/2018 03:21:47 PM CO OATH Tina E. Sinnen, Clerk VIRGINIA: IN THE VIRGINIA BEACH CIRCUIT COURT CLERK'S OFFICE OATH I SABRINA D. WOOTEN do solemnly swear(or affirm)that I will support the Constitution of the United States, and the Constitution of the Commonwealth of Virginia,and that I will faithfully and impartially discharge all the duties incumbent upon me as a member of the Virginia Beach City Council, Centerville District , for a term beginning January 1, 2019, and ending on €W 2O.SAJ• December 31, 2.0-22; according to the best of my ability, (so help me God). t()91/4-6-e-- - Signature of Person Taking Oath Oath taken and subscribed to before me on the 28th day of December, 2018. TINA E. SINNEN, CLERK 13311.10 oL • Clerk Original-Retained by Clerk Copy—To Person Taking Oath 58 ITEM— VI-F ELECTION OF THE VICE MAYOR ITEM#68786 Upon NOMINATION by Council Member Jones, seconded by Council Member Wilson, City Council ELECTED: James L. Wood Lynnhaven—District 5 Vice Mayor 2 Year Term January 1,2019—December 31, 2020 Voting: 10-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 59 ITEM— VI-F.1 OATH OF OFFICE FOR VICE MAYOR ITEM#68787 The Honorable Leslie L. Lilley, Presiding Judge, Virginia Beach Circuit Court, DELIVERED the Oath of Office to the re-elected Vice Mayor: James L. Wood Lynnhaven—District 5 Vice Mayor 2 Year Term January 1, 2019—December 31, 2020 January 8, 2019 VIRGINIA: IN THE VIRGINIA BEACH CIRCUIT COURT CLERK'S OFFICE OATH I, 7J tr L _ do solemnly swear(or affirm)that I will support the Constitution of the United States, and the Constitution of the Commonwealth of Virginia, and that I will faithfully and impartially discharge all the duties incumbent upon me as Vice Mayor of the City of Virginia Beach , for a 2-year term beginning January 1, 2019, and ending on December 31, 2020, according to the best of my ability, (so help me God). WA, Signature of Pe so n Taking Oath Oath taken and subscribed to before me on the ,) day of January, 2019. LESLIE L. LILLEY, JUDGE By:cj ,LC%C Original-Retained by Clerk Copy—To Person Taking Oath 60 ITEM— VI-G MAYOR'S FORMAL SEATING OF CITY COUNCIL ITEM#68788 Mayor Robert M. Dyer Vice Mayor James L. Wood Louis R. Jones Rosemary Wilson Barbara M.Henley Shannon DS Kane John D.Moss Sabrina D. Wooten Jessica P.Abbott David Nygaard Aaron R. Rouse January 8, 2019 61 ITEM— VI-H VICE MAYOR AND CITY COUNCIL COMMENTS ITEM#68789 Mayor Dyer welcomed the new City Council team and expressed his appreciation to all of the family and guests that took part in this special day and called on Council Members for comments. Vice Mayor Wood expressed his appreciation to the citizens for electing him to represent the Lynnhaven District, and the City Council electing him as Vice Mayor as well as his family for their support. Council Member Rouse expressed his appreciation to the citizens of Virginia Beach and his family and especially his mom. Council Member Rouse advised it has been a long road from the Sea Tack Community and expressed his appreciation to the first responders, community leaders and teachers and stated he takes this role very seriously and will keep citizens in mind with each decision and vote made. Council Member Abbott noted the passionate and contentious campaign speaks to the tenacity of the City and is excited to serve with new and re-elected Council Members with the unity brought with the election of Mayor Dyer. Council Member Henley expressed her appreciation to her husband and other family members for their support along with all of the voters who supported her. Council Member Henley feels the next two years are very important as pivotal decisions will be made that will determine the future of our City. Council Member Jones expressed his appreciation to his wife and family and advised he is looking forward to the next four(4)years working with the new City Council Members. Council Member Wilson advised some of the greatest and most honorable things she has been able to do has included her service to this City. Council Member Wilson also stated this is the greatest City in the world with the greatest citizens in the world. There are a lot of exciting things ahead of us, with a page of a new day, and looks forward to serving with all of the Council Members. Council Member Kane expressed her appreciation to everyone who voted for her previously and welcomed the new Council Members to the "team"as she is excited for their new ideas and perspectives. Council Member Kane expressed appreciation to the re-elected Council Members for their guidance, experience and history they provide and believes this Council is a good team representing past,present and future. Council Member Wooten expressed her appreciation to her husband,family and the citizens who voted for her. This year marks a new change and landmark for the City Council. She is prepared to faithfully and impartially carry out her oath by working in tandem to execute the mission of this great City. Council Member Nygaard expressed his appreciation to his father. He also expressed appreciation to the citizens,pastors and first responders who gave him a chance and advised he will give this position all that he has. January 8, 2019 62 ITEM— VI-I CERTIFICATION ITEM#68790 Upon motion by Council Member Jones, seconded by Council Member Kane, City Council CERTIFIED THE CLOSED SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS Only public business matters lawfully exempt from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies. AND, Only such public business matters as were identified in the motion convening the Closed Session were heard, discussed or considered by Virginia Beach City Council. Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 9) 4* ,,;� m OUR NPZ,O RESOLUTION CERTIFICATION OF CLOSED SESSION VIRGINIA BEACH CITY COUNCIL WHEREAS: The Virginia Beach City Council convened into CLOSED SESSION, pursuant to the affirmative vote recorded in ITEM#68784 Page 54 and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.2-3712 of the Code of Virginia requires a certification by the governing body that such Closed Session was conducted in conformity with Virginia law. NOW,THEREFORE,BE IT RESOLVED:That the Virginia Beach City Council hereby certifies that,to the best of each member's knowledge,(a)only public business matters lawfully exempted from Open Meeting requirements by Virginia law were discussed in Closed Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motion convening this Closed Session were heard, discussed or considered by Virginia Beach City Council. I Amanda :arnes, MMC City Clerk January 8, 2019 63 ITEM— VI-J MINUTES ITEM#68791 Upon motion by Council Member Wilson, seconded by Council Member Kane, City Council APPROVED the MINUTES of the INFORMAL and FORMAL SESSION of December 11, 2018 Voting: 8-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M Dyer, Barbara M Henley, Louis R. Jones, Shannon DS Kane, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss Council Members Abstaining: David Nygaard Aaron R. Rouse January 8, 2019 64 ITEM— VI.L.1 RESOLUTION ITEM#68792 The following registered to speak: Barbara Messner, P.O. Box 514, spoke in OPPOSITION Upon motion by Council Member Wilson, seconded by Council Member Jones, City Council ADOPTED, Resolution to DIRECT the City Attorney to file a Petition for Writ of Special Election re vacancy in the Office of City Treasurer Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 1 A RESOLUTION TO DIRECT THE CITY ATTORNEY TO 2 FILE A PETITION FOR A WRIT OF SPECIAL ELECTION 3 TO FILL THE VACANCY IN THE OFFICE OF CITY 4 TREASURER 5 6 WHEREAS, John T. Atkinson, City Treasurer, was elected for a term that ends 7 December 31, 2021 ; 8 9 WHEREAS, Mr. Atkinson has submitted his resignation to the City Council, and 10 the resignation is effective December 31, 2018; 11 12 WHEREAS, Code of Virginia § 24.2-228.1 requires the governing body to petition 13 the circuit court for a Writ of Special Election to fill the remaining portion of the term of 14 office for an elected constitutional office when there is more than twelve months 15 remaining in the term of office; and 16 17 WHEREAS, the next general election available to fill the vacancy in the Office of 18 the City Treasurer is November 5, 2019. 19 20 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 21 VIRGINIA BEACH, VIRGINIA: 22 23 That the City Council directs the City Attorney to file a Petition for a Writ of 24 Special Election in the Circuit Court for the purpose of filling the vacancy in the office of 25 City Treasurer for a term ending December 31, 2021, and requests such special 26 election to be held November 5, 2019. Adopted by the City Council of the City of Virginia Beach, Virginia, this 8th day of January , 2019. APPROVED AS TO LEGAL SUFFICIENCY: `City or y's Office CA14594 R-1 December 17, 2018 1 •'_ +Cr'ity of Virginia 1E3 ca cls + i s .g MUNICIPAL CENTER-BUILDING 1 2401 COURTHOUSE DRIVE 2 VIRGINIA BEACH,VA 23456-9018 $ r1 (757)385-4445 ,. �r ..a ��..5 Op OUR NAS10,j't JOHN T.ATKINSON December 13,2018 TREASURER Mayor Robert M. Dyer 2401 Courthouse Dr. Virginia Beach,VA 23456 Dear Mayor Dyer: According to Section 13.1-874 of the Code of Virginia,an officer may resign at any time by delivering notice to the corporation. I hereby tender my resignation effective December 31,2018. In tendering my resignation, I end 41 years of the most enjoyable and exciting experience a person could have.That is,working with our outstanding Virginia Beach employees serving the citizens of Virginia Beach. For this honor I can only say thank you. S' .-rely yours, Brim I� n T tkin easurer,City of Virginia Beach 65 ITEM VI-M APPOINTMENTS ITEM#68793 BY CONSENSUS, City Council RESCHEDULED the following APPOINTMENTS: ADVERTISING ADVISORY COMMITTEE AUDIT COMMITTEE BIKEWAYS AND TRAILS COMMITTEE BOARD OF BUILDING CODE APPEALS—ELECTRICAL DIVISION BOARD OF BUILDING CODE APPEALS—NEW CONSTRUCTION DIVISION BOARD OF BUILDING CODE APPEALS—PLUMBING AND MECHANICAL DIVISION BROADBAND STEERING COMMITTEE COMMUNITY ORGANIZATION GRANT REVIEW AND ALLOCATION COMMITTEE COMMUNITY SERVICES BOARD DEFERRED COMPENSATION BOARD GREEN RIBBON COMMITTEE HAMPTON ROADS PLANNING DISTRICT COMMISSION HEALTH SERVICES ADVISORY BOARD HISTORIC PRESERVATION COMMISSION HISTORICAL REVIEW BOARD HUMAN RIGHTS COMMISSION INVESTIGATIVE REVIEW PANEL MINORITY BUSINESS COUNCIL PERSONNEL BOARD PROCESS IMPROVEMENT STEERING COMMITTEE STORMWATER APPEALS BOARD TRANSITION AREA/INTERFACILITY TRAFFIC AREA CITIZENS ADVISORY BOARD VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION January 8, 2019 66 ITEM VI-M APPOINTMENTS ITEM#68794 Upon NOMINATION by Vice Mayor Wood, City Council APPOINTED: DR. CYNTHIA C.ROMERO Unexpired thru 6/30/19 plus Four year term 7/1/19—6/30/23 ARTS AND HUMANITIES COMMISSION Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 67 ITEM VI-M APPOINTMENTS ITEM#68795 Upon NOMINATION by Vice Mayor Wood, City Council REAPPOINTED: PATRICIA KEELEY (Rose Hall District) Three year term 7/1/18—6/30/21 BEACHES AND WATERWAYS ADVISORY COMMISSION Voting: 10-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 68 ITEM VI-M APPOINTMENTS ITEM#68796 Upon NOMINATION by Vice Mayor Wood, City Council APPOINTED: BOBBY WHEELER (Alternate) Unexpired Term thru 12/31/22 SOUTHERN PUBLIC SERVICE AUTHORITY Voting: 10-0 Council Members Voting Aye: Jessica P.Abbott, Mayor Robert M Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 69 ITEM VI-M APPOINTMENTS ITEM#68797 Upon NOMINATION by Vice Mayor Wood, City Council APPOINTED: JEREMY CALEB JOHNSON Unexpired thru 12/31/20 VIRGINIA BEACH COMMUNITY DEVELOPMENT CORPORATION Voting.• 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 70 ITEM VI-N NEW BUSINESS ITEM#68798 BY CONSENSUS, City Clerk shall record: Abstract of Votes for the General Election on November 6, 2018 Voting: 10-0 Council Members Voting Aye: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane, David Nygaard, Aaron R. Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss January 8, 2019 ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY,VIRGINIA at the 2018 November General Election held on November 06, 2018 for, United States Senate NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Timothy M. Kaine - Democratic 91813, Corey A. Stewart - Republican 1 735751 Matt J. Waters - Libertarian 3851 Total Write-In votes[From Write-Ins Certifications] 1761: [Valid Write-Ins+ Invalid Write_ins =Total Write In Votes] Total Number of Overvotes for Office ! 44 We,the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do hereby certify that the above is a true and correct Abstract of Votes cast at said election for the United States Senate. II, Given under our hands this day of Iv a_ , Chairman dr Vice Chairman Electoral Board .0WW&O. , Secretary Seal VOW , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member House of Representatives District: 02 NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Elaine G. Luria - Democratic 868221 Scott W. Taylor - Republican 82586i Total Write-In votes[From Write-Ins Certifications] 193 [Valid Write-Ins+ Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 27. We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do hereby certify that the above is a true and correct Abstract of Votes cast at said election for the Member House of Representatives. .per Given under our hands this / - day of c Zs5 I , Chairman 9 ) 4/ , Vice Chairman Electoral Board � , „�i1:, .- , Secretary Seal irtgo- ././1'.1 i. Al , Secretary, Electoral Board ABSTRACT of REFERENDUM VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Proposed Constitutional Amendment Question 1 Should a county, city, or town be authorized to provide a partial tax exemption for real property that is subject to recurrent flooding, if flooding resiliency improvements have been made on the property? QUESTION RESPONSE TOTAL VOTES RECEIVED (IN FIGURES) Total YES votes 116491) Total NO votes 48743 Total Number of Overvotes for Question 49 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do hereby certify that the above is a true and correct Abstract of Votes cast at said election for the proposed referendum. Given under our hands this day of 1 , Chairman , Vice Chairman Electoral BOA4 -A , Secretary Seal r ,• LAL./i( --_ , Secretary, Electoral Board ABSTRACT of REFERENDUM VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Proposed Constitutional Amendment Question 2 Shall the real property tax exemption for a primary residence that is currently provided to the surviving spouses of veterans who had a one hundred percent service-connected, permanent, and total disability be amended to allow the surviving spouse to move to a different primary residence and still claim the exemption? QUESTION RESPONSE TOTAL VOTES RECEIVED (IN FIGURES) ITotal YES votes 1372781 !Total NO votes 28101 ,Total Number of Overvotes for Question 431 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do hereby certify that the above is a true and correct Abstract of Votes cast at said election for the proposed referendum. Given under our hands this l day of t g Q, , Chairman 6%z,vf---tU 277 -- -> , Vice Chairman Electoral Board IC, . , Secretary Seal v� ,, , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Mayor NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Robert M. "Bobby" Dyer f 82201 M. Ben Davenport 756931 Total Write-In votes[From Write-Ins Certifications] I 7891 [Valid Write-Ins + Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 44' We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s)has received the greatest number of votes cast for the Mayor. Robert M. "Bobby" Dyer Given under our hands this 1 day of NU-ti- &- , i , Chairman is 2-6-7 , Vice Chairman Electoral Board ,. , , Secretary Sea • ri.FAMl , Secretary, Electoral Board i ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member City Council - At Large NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Aaron R. Rouse 67089 John D. Moss 56835 Dee B. Oliver i 56488 Allison M.White 34225i Linda M. Bright22549 Garay B. Hubbard r 12707, Total Write-In votes [From Write-Ins Certifications] 1393 [Valid Write-Ins + Invalid Write_ins =Total Write In Votes] Total Number of Overvotes for Office 343 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member City Council -At Large. 1. Aaron R. Rouse 2. John D. Moss r!� Given under our hands this 13 day of N , 1, S_ / , Chairman - /` , Vice Chairman Erll AgalBoard , Secretary Seal _ 41, At / , Secretary, Electoral Board c ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY,VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member City Council - Bayside District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Louis R. Jones 70701 Brad D. Martin 70198' Total Write-In votes[From Write-Ins Certifications] 1010 [Valid Write-Ins + Invalid Write_ins =Total Write In Votes] Total Number of Overvotes for Office 86' We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do,therefore, determine and declare that the following person(s)has received the greatest number of votes cast for the Member City Council-Bayside District. Louis R.Jones Given under our hands this 1 3 � day of N , 18 az._actri2,z,„ , Chairman �GPw ✓ , Vice Chairman Electoral B0 ard . � , Secretary Seal i ' 71- , Secretary, Electoral Board 1 ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY,VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member City Council - Beach District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) David Nygaard 47936; John E. Uhrin 47724 Richard W. "RK"Kowalewitch 33262 John E. Coker 15911 Total Write-In votes[From Write-Ins Certifications] 724 [Valid Write-Ins+ Invalid Write_ins = Total Write In Votes] Total Number of Overvotes for Office 576 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do,therefore, determine and declare that the following person(s)has received the greatest number of votes cast for the Member City Council-Beach District. David Nygaard Given under our hands this 13' day of I V 12 , Chairman , Vice Chairman Electoral Board ,, ��, , ��, Secretary Seal4pwr- , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY,VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member City Council - Lynnhaven District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) James L. "Jim"Wood 64654 Susanne M. Henderson 43256 Michael P. "Mike" Maskell 27318. Total Write-In votes [From Write-Ins Certifications] 1129' [Valid Write-Ins+ Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 105 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member City Council-Lynnhaven District. James L. "Jim"Wood 4 Given under our hands this / -1"' day of i 8 , Chairman i ` ,� -\ ), Vice Chairman Electoral / Board , Secretary Seal / ' f,', Wit' , c. , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member City Council - Princess Anne District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) ;Barbara M. Henley 66709 Tim P. Worst 37217. Karen B. Kwasny 33561 Pied Evan Burton 4150 Total Write-In votes[From Write-Ins Certifications] 685; [Valid Write-Ins+ Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 231i We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member City Council- Princess Anne District. Barbara M. Henley Given under our hands this / day of I v - , Chairman . _• , �Vice Chairman Electoral Board ' L 1...4-4111111rr , Secretary Seal r, , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY,VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member City Council - Centerville District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Sabrina D.Wooten 826971 Eric V. Wray, Jr. 424951 C. Conrad Schesventer II ! 78201 Total Write-In votes[From Write-Ins Certifications] 630i [Valid Write-Ins+ Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 1 421 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do,therefore, determine and declare that the following person(s)has received the greatest number of votes cast for the Member City Council-Centerville District. Sabrina D.Wooten Given under our hands this Tat day of IV -1-.sq) t g , Chairman ?i) , Vice Chairman Electoral Beard , , ��j,� . , Secretary I0Pai . --� , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member School Board - At Large NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Dorothy M. "Dottie" Holtz F 61672 Laura King Hughes 47846, Robert N. 'Bobby" Melatti 45805! •Seko B.Vamer 28617 Stephen A.Johnston 20531. Total Write-In votes [From Write-Ins Certifications] 1040: [Valid Write-Ins+ Invalid Write_ins = Total Write In Votes] Total Number of Overvotes for Office 1281 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member School Board -At Large. 1. Dorothy M. "Dottie" Holtz 2. Laura King Hughes Given under our hands this / T�� day of 'vj t-& Q , Chairman / �► �� 1 , Vice Chairman Electoral BOA / ----+ , Secretary Seal f f Secretary, Electoral Board 4141 ,� ry ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member School Board - Bayside District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Carolyn D. Weems 120697 Total Write-In votes [From Write-Ins Certifications] 2438 [Valid Write-Ins+ Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 31 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member School Board - Bayside District. Carolyn D. Weems Given under our hands this / 3 day of , 7 I ,___ , , Chairman 277 �4A4"4 ice Chairman • Electoral Board Secretary Seal � Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member School Board - Beach District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Sharon R. Felton 80140 !Kendra Gail Edwards 51935 Total Write-In votes[From Write-Ins Certifications] 781 i[Valid Write-Ins+ Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 45 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member School Board - Beach District. Sharon R. Felton Given under our hands this 1 day of y� , , Chairman r • , Vice Chairman Electoral AMi B0 Secretary Seal , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member School Board - Lynnhaven District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Carolyn T. Rye 74320' ;Mary Watson Wales 57493 Total Write-In votes[From Write-Ins Certifications] 713' [Valid Write-Ins + Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office i 27! We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member School Board - Lynnhaven District. Carolyn T. Rye • Given under our hands this / day of , ZO `re Q , 0 c,1 , Chairman OW' 4_ __ , Vice Chairman ElecU�ral Board AWN& _ , Secretary Seal l �,A .411 , Secretary, Electoral Board ABSTRACT of VOTES Cast in VIRGINIA BEACH CITY, VIRGINIA at the 2018 November General Election held on November 06, 2018 for, Member School Board - Princess Anne District NAMES OF CANDIDATES ON THE BALLOT TOTAL VOTES RECEIVED (IN FIGURES) Kimberly A. Melnyk 785191 Paul F. Day 52032 Total Write-In votes[From Write-Ins Certifications] 8931 [Valid Write-Ins+ Invalid Write_ins=Total Write In Votes] Total Number of Overvotes for Office 37 We, the undersigned Electoral Board, upon examination of the official records deposited with the Clerk of the Circuit Court of the election held on November 06, 2018, do herby certify that the above is a true and correct Abstract of Votes at the said election and do, therefore, determine and declare that the following person(s) has received the greatest number of votes cast for the Member School Board - Princess Anne District. Kimberly A. Melnyk Given under our hands this 1 3 72-4- day of ) V , Chairman �. � .,i , Vice Chairman EBoardtor `// � Board , Secretary SealotA , �, Secretary, Electoral Board 71 ADJOURNMENT ITEM#68799 Mayor Robert M. Dyer DECLARED the City Council Meeting ADJOURNED at 6:34 P.M. • _ ,S Chief Deputy City Clerk Ii A � ,ill Mv C a �►}JRobert M. Dyer City Clerk Mayor City of Virginia Beach Virginia January 8, 2019 72 OPEN DIALOGUE The following registered to speak: Joel Chambers, 104-A North Witchduck Road, Phone: 679-5380, did not respond Marygrace Martin, 2113 Marymount Arch, Phone: 636-0277, spoke regarding ex-husband violating protective order and wrongful termination Barbara Messner, P. O. Box 514, spoke regarding traffic accidents and crime Rona Marsh, 4382 Lynnville Crescent, Phone: 270-7900, spoke regarding flooding and unfunded pension liabilities Donna Howard, 1057 Debaca Court, Phone: 567-9021, spoke regarding the Dome Site Project Virginia Wasserburg, 4412 Sanibel Circle#101, Phone: 963-8679, expressed flooding concerns Kelly Barksdale, 104 N. Witchduck Road, Phone: 769-9352, spoke regarding personal safety in the Housing Resource Center Donna Willey, 2900 Bald Eagle Bend, Phone: 650-5494, spoke regarding concerns with the Piney Grove Baptist Church request for modifications of the conditional use permit. ADJOURNED AT 7:00 P.M. January 8, 2019