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MARCH 12, 2019 WORKSHOP MINUTES
�Nriel' u''ref c Off„rya %'��7 ;_ y crS ay E1/ VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virginia March 12, 2019 Mayor Robert M. Dyer called to order the CITY MANAGER'S BRIEFINGS, in the City Council Conference Room, Tuesday, March 12, 2019, at 4:00 P.M. Council Members Present: Jessica P. Abbott, Mayor Robert M. Dyer, Barbara M. Henley, Louis R. Jones, Shannon DS Kane,John D.Moss,Aaron Rouse, Rosemary Wilson, Vice Mayor James L. Wood and Sabrina D. Wooten Council Members Absent: John D. Moss Work Commitment David Nygaard 2 CITY MANAGER'S BRIEFINGS FIRST FLOOR ELEVATION ON NEW CONSTRUCTION ITEM#69014 4:00 P.M. Mayor Dyer welcomed Kevin Kemp,Interim Director—Planning. Mr. Kemp expressed his appreciation to City Council for their continued support and turned the presentation over to Whitney McNamara, Certified Floodplain Manager—Planning: e kik I STOP iq = Rsa� Virginia Beach SiihLru, NNW Floodplain Ordinance Revisions Whitney McNamara,CFM f Department of Planning and Community Development March 12,2019 rh` Here is the Current Floodplain Ordinance: Current Floodplain Ordinance • Moved from the Site Plan Ordinance to standalone Floodplain Ordinance in Appendix K of City Code in 2013 • Adopted 2 feet of freeboard in SFHA in November 2013 • Increased from 1 foot,which was required since 1971 • New structures and substantial improvements to existing structures in Zones A,AE,and VE • Does not impact development in Shaded X or X • No freeboard requirement for mechanicals (HVAC, ductwork, hot water heaters,electrical,etc.) March 12, 2019 3 CITY MANAGER'S BRIEFINGS FIRST FLOOR ELEVATION ON NEW CONSTRUCTION ITEM#69014 (Continued) The following graphics provide an overview of Flood Zones: Flood Zones • Special Flood ® IJAIYd1 8 Hazard Areas (SERA) gg AL 111 • A,AE,AN,A0, I VE,Coastal A • Low to moderate 4— wwave123 feet -4 wave hop wave height a a —÷risk flood areas N ght <1.5 feet (based on floodI Limit maps) BFE� Food level- ,Property elevated building I base of • X andIncbding 1 I floodingX(Shaded) - __1_wave effects and waves 100-year ^---�'-- ` stNwaterelevaticn 1 � L Sea level tlnelevated building constructed before eorrmunity entered the NF1P I f - Shoreline Sand 1beaar Builds Overland Vegetated limn SI SFNA wind fetch region Flood Zones r ' i x - 111 •4.,i 1; a ti ♦ y+l Kik '..-....' rr} March 12,2019 4 CITY MANAGER'S BRIEFINGS FIRST FLOOR ELEVATION ON NEW CONSTRUCTION ITEM#69014 (Continued) This graphic depicts properties off of Gum Bridge Road. The green areas are identified in the AE Zone (100-Year Floodplain)and the hashed areas are identified in the X Zone(500-Year Floodplain): Gum Bridge Road oo ; ; y 675 R ;; 4 -.II" • p The Virginia Uniform Statewide Building Code, updated in September 2018, include changes to the Coastal A Zones: Virginia Uniform Statewide Building Code 2015 2015 UI 1111,11 • New building code went into effect in September 2018 ,A • Coastal A Zones 2015 1111111 1111111 • 1 Foot of freeboard for residential - -- „--� • Only impacts additions to structures itA J constructed prior to 1971 2015 1111111 1111111 11 • March 12. 2019 5 CITY MANAGER'S BRIEFINGS FIRST FLOOR ELEVATION ON NEW CONSTRUCTION ITEM#69014 (Continued) Here is an overview of Coastal A Zones: Coastal A Zones • Defined as areas where wave action is -- a between 1.5 and 3 feet and shown on the FIRMs by the Limits of Moderate Wave Action �t (LiMWA) line ' • Must meet VE Zone design standards • No structural fill • Pile foundation • Will impact 794 properties • 183 are currently undeveloped • 238 buildings located in the Coastal A Zone "` `� • 118 are classified as residential or commercial 1 #� buildings 'As of 3/12/2019 The next two (2)graphics depict the Coastal A Zone near Lynnhaven and Shore Drive: Coastal A Zones • March 12, 2019 6 CITY MANAGER'S BRIEFINGS FIRST FLOOR ELEVATION ON NEW CONSTRUCTION ITEM#69014 (Continued) Coastal A Zones \N.,..v1/4411111111\ 1445 '7 Here is an overview of items Planning is addressing as a result of the Dewberry Study: Dewberry Study Policy Items • Multiple items for Planning to address including the following: +~ • Evaluate areas of high risk for flooding and Sea Level Rise compared to existing and ,*I •t%i �" future land use j • Provide guidance to developers on how to p_' f1•' d' . assess flood risk in projects • Update all development ordinances to Legend , ,,_ comprehensively incorporate current and F Total Loss j; future flood risk as well as localizedM„ •- flooding t MNNqn -severe f I • ✓ - ./•.tea l March 12. 20/9 7 CITY MANAGER'S BRIEFINGS FIRST FLOOR ELEVATION ON NEW CONSTRUCTION ITEM#69014 (Continued) Here are a few of the proposed policy options: Options • Option 1 • Update freeboard to 3 feet now prior to completion of studies(Only affects SFHA) • Undertake a comprehensive update to all codes to address flooding city-wide upon completion of the Dewberry Study and the Master Drainage Study • Option 2 • Wait until the Dewberry Study and the Master Drainage Study are complete to recommend comprehensive changes to all codes to address flooding city-wide • Use data identified in those studies to set first floor elevations city-wide • Addresses flooding in areas outside the FEMA SFHA,including areas impacted by Hurricane Matthew and last summer's Wind Tide flood events Considerations • Both Options: • Increased construction cost to elevate structures • Option 1 • Multiple changes in a short amount of time can be difficult for residents, builders,and consultants • May not fully address flood concerns,especially in areas outside mapped SFHA,while imposing stricter regulations in areas that are already being protected • Option 2 • Flood Insurance Savings—only in mapped SFHA.Areas located outside the mapped SFHA have PRP policy,not elevation based March 12.2019 8 CITY MANAGER'S BRIEFINGS FIRST FLOOR ELEVATION ON NEW CONSTRUCTION ITEM#69014 (Continued) Here is an overview of Stakeholder Involvement: Stakeholder Involvement • Public—Coordinate with Communications Office to provide multiple outlets to share ,, -c proposed changes and receive feedback • Development Community(builders, consultants,contractors,etc.) • Planning Commission • Public Works • Dewberry and Master Drainage Study V { • Public Works Design Standards Manual 1 L Questions? Whitney McNamara 385-8615 ,..... : ;:iiiror ,* til x`, Mayor Dyer expressed his appreciation to Mr. Kemp and Ms. McNamara for the presentation. March 12, 2019 9 CITY MANAGER'S BRIEFINGS VIRGINIA BEACH DEVELOPMENT AUTHORITY 2018 AUDIT UPDATE and ECONOMIC DEVELOPMENT INVESTMENT PROGRAM(EDIP)POLICY— PROPOSED REVISION ITEM#69015 4:35 P.M. Mayor Dyer welcomed Taylor Adams, Interim Director—Economic Development. Mr. Adams expressed his appreciation to City Council for their continued support: Update on Findings from the 2018 Audit of the Virginia Beach Development Authority and a Directional Briefing on the Revision to the Economic Development Investment Program (EDIP) Policy VIRGINIA BEACH CITY COUNCIL MARCH 12,2019 TAYLOR V.ADAMS STEVE HAF'R',SON 8 SEAN ,'URFHY Here is Progress to Date: Progress to Date ► Nov 2018-Report Management Response ► Report contained 12 recommendations ► 6 recommendations have been implemented ► EDIP revision,with Council approval,intended to implement the other 6 recommendations 10 CITY MANAGER'S BRIEFINGS VIRGINIA BEACH DEVELOPMENT AUTHORITY 2018 AUDIT UPDATE and ECONOMIC DEVELOPMENT INVESTMENT PROGRAM(EDIP)POLICY— PROPOSED REVISION ITEM#69015 (Continued) Here are six(6)Implemented Recommendations: Implemented Recommendations ► 1.1 Update written disbursement controls to include ACH and electronic check processing. ► 2.1 VBDA chair,when performing his/her financial review of invoices, review each prior monthly bank statement to verify payments ► 3.1 Economic Development implement dual approval prior to ACH ► 4.1 Adopt a written procurement policy(similar to the City's) ► 8.1 Develop a plan to be able to publicly broadcast all VBDA meetings I. 9.1 VBDA accountant work with the City Comptroller to promptly return $131,445 to the City for closed/inactive CIP projects. Here is an overview of the EDIP Purpose and History: EDIP Purpose and History ► Enhance the ability of the VBDA to curate economic development by inducing new businesses to locate here,and existing businesses to remain or expand here ► Original policy approved by VBDA and City Council in 1994 ► EDIP funds generated cigarette tax ► EDIP awards are approved by the Development Authority based on Director's recommendation ► EDIP requires job creation/retention or new capital investment ► The formula for"Part A"is: ► Capital Investment:Every$1 in EDIP funds yields at least$25 In capital investment ► Jobs:$1,000 EDIP=At least 1 new job(excluding benefits) ► $2,000 EDIP=At least 1 new job paying between$35.001-$50,000 P. $3,000 EDIP=At least 1 new job paying between$50,001-$75,000 ► $4,000 EDIP=At least 1 new job paying above$75,001 March 12, 2019 11 CITY MANAGER'S BRIEFINGS VIRGINIA BEACH DEVELOPMENT AUTHORITY 2018 AUDIT UPDATE and ECONOMIC DEVELOPMENT INVESTMENT PROGRAM(EDIP)POLICY— PROPOSED REVISION ITEM#69015 (Continued) The next several slides provide an overview of the remaining recommendations proposed for the EDIP Policy revision: Recommendation 6.1 Auditor Finding Pr000sed Change ► We recommend that Economic Development ► The definition of "Capital Investment" adhere to the EDIP Policies and Procedures, shall mean a capital expenditure in the EDIP award resolutions and remit grant taxable real property, taxable tangible awards only after the criteria are met- personal property,or both at the Project specifically the requiement thot investments of in the City of Virginia Beach.The Authority capital assets be new.not existing.capital magna in its discretion.determine that the assets. of machinery and equpment leased under an operating lease wit qualify as a capitol investment. The ► total-retained capital can count. Authority may also, in its discretion. consider Capital Investments made by thid parties at the Project for the overall benefit of the Project,and/or the value of moveable equipment retained by a business that was considering relocating outside of the City of Viginia Beach. Recommendation 7.1 • Auditor Finding Pr000sed Change ► We recommend in the future that it ► Part D,Section 3.Subsection A shall be written in the award resolution be amended to: that in the event a company "When EDIP funds are awarded receives an EDIP award and pursuant to either Part A or Part B chooses to utilize a developer or this Policy,they shall be paid to the subcontractor, that the contractor Applicant at such time as the must allow the City full access,like Director shall(I)obtain copies such the award recipient,to their records records from the Applicant needed to verify the capital cost (including all contractors or investment as part of the subcontractors)necessary to performance criteria to receive the document the actual costs Incurred contract. This requirement should for the purpose or purposes for be added to the EDIP policies and which the funds are to be procedures as well. provided... March 12,2019 12 CITY MANAGER'S BRIEFINGS VIRGINIA BEACH DEVELOPMENT AUTHORITY 2018 AUDIT UPDATE and ECONOMIC DEVELOPMENT INVESTMENT PROGRAM(EDIP)POLICY— PROPOSED REVISION ITEM#69015 (Continued) Recommendation 7.2 Auditor Finding Proposed Change ► Reword EDIP Part D#3 to require full ► Part D,Section 3,Subsection A shall be access to all records supporting the amended to: verification of the performance (II) determine that the Project is in criteria, but allow for the use of conformity with the plan of sampling, materiality and judgement development presented to the (discretion) in deciding acceptable Authonty and with all conditions which verification methodology for each may have been attached to the award-more like an audit clause. approval of the award of the funds by the Authority;and(iii)where required by the Authority (such as when o majority of the jusfificatiionfor an dwaldr the acquisifionof personalty that couldbe removed from the City of Virginia Beach),the Applicant shall execute and deliver to the Authority an EDIP Recapture Agreement in a form acceptable to counsel for the Authority." • Recommendation 7.3 Auditor Finding proposed Change ► Acknowledging that there are times ► Part D,Section 3,Subsection D shall be when flexibility and discretion am amended to: needed to promote growth, for "The Director shall compile a written d accountability and transparency we recoriam^ pr ea he gi((fodoPo�y recommend that a short summary ^1J report be prepared by the accountant employed, records reviewed and performing the verification at the time steps undertaken to ensure of each EDIP award disbursement, €oocaro wr:poM ssfhaint eoithnie communicating what verification steps c information to 'determine were taken and deemed satisfactory compliance with he Capital and include that in the monthly Investment and/or New Job financial packet presented to the requirement(s)of Section 3(b),above. Commissioners. This report shall be provided to the Commissioners at their monthly financial briefing." March 12,2019 13 CITY MANAGER'S BRIEFINGS VIRGINIA BEACH DEVELOPMENT AUTHORITY 2018 AUDIT UPDATE and ECONOMIC DEVELOPMENT INVESTMENT PROGRAM(EDIP)POLICY— PROPOSED REVISION ITEM#69015 (Continued) Additional Changes ► Added Opportunity Zones to areas in City where awards will be considered(previously SGA,SEGA and Economic Redevelopment Areas). ► Added definitions of"Capital Investment", "New Job"and "Project"based on Commonwealth Opportunity Fund Guidelines. ► Added reporting requirements from director to better disclose basis of award recommendation and promote even application of Policy. ► Sunset and"claw back"provisions included per VBDA direction ► "EDIP is discretionary and not an entitlement"emphasized in the Policy and Application ► EDIP grants are available for new locations and expansions,as well as retaining existing businesses Here are the Next Steps: Next Steps ►March 19 - A request for approval of the update to the Economic Development Investment Program (EDIP) Policy Mayor Dyer expressed his appreciation to Mr. Adams for his hard work and presentation. March 12,2019 14 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69016 5:01 P.M. Mayor Dyer welcome Bob Montague, Director—Public Utilities. Mr. Montague expressed his appreciation to City Council for their continued support: 0,),";:-"t% Public Utilities Budget Presentation March 12,2019 Robert S.Montague,Jr. Director Here is the Mission of Public Utilities: Mission Provide the highest quality and most reliable public water supply and wastewater collection services at the lowest practical cost. 1.14C';•Ztt., March 12. Ally 15 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget) — WASTE MANAGEMENT UTILITY FUND ITEM#69016 (Continued) Here is the Public Utilities Overview: Public Utilities Overview Operational Highlights • AAA bond rating • 100%compliance with all water and sewer regulatory requirements • Test over 7,300 water quality samples annually • Mail over 1.5 million City Services Bills annually • Respond to over 3,000 customer sewer stoppages annually • Respond to over 126,000 customer service inquiries annually PIN I Major Assets 41 2 wer pump stns 1,648 miles of sewer mains 5: .? • - '�.•j;. 30,000 sesewer manholesatio r- • 8 potable water pump stations • 2raw water pump stations 1 • 11 potable water storage tanks �y,, • 1,503 miles of water distribution pipes lay l' ▪ Lake Gaston Pipeline-76 miles Organizational Chart Directors Orrice-3 ETES Director Robert S.Montague,lc faar7y trt %."'"7nMKM".""amr L r�Mn Gan< ErKa MEem Maaretbns DAlebn-i3METEa Business Division-70.Tts Eryhwring Debbn-]d EI6 Tathn415arvlwa DMYMa-lifl6 IIUPIy Opan[buMmMbbaeer Business Momper EngMebry Manager TecMblS.MW iiaM4iater m _ Mes M.CMI,y,P.E.,PhD. Meredith Kellam Stephen T.Maley.P.E. Laeeb D.Mei 116.HabalMSpee41bt11 MmFbnat,DeiMM MmhS005.S..OMERl SWbmsAWpeg-Ma Krun Hoover UEBty DYremu — ger Ranbn — bang Keenan scan — Supervisor David West Cynthia Adkins — CuttpmaSaMPUamu _ RaguMM •mg,Yae SyaAEryµtan Epl aper.ebmF>dnearYlg_ 4X Gine. �DPittu.yrd NeD4un,P.E Denirm.tn " AadkY M.Ve,P.F. �Sherri Whson �SYSMMM1n to^nlr� lupetmm — PIr1Mlg&Mala. Smarr West. —Waite DOOMWMI»hnson 000.M nrpn,I.F. Vaunt MbertVlheeM Mame Deicer Server Pump UM* Maur Oman —WtOsee Boaeler Dent Noble — Man Hood FRulpme M _Beabiol Support SAarybhrlson Total-415 ETES Wvid Do - Paul Meyer FOR _Claudie Anderson March 12,2019 16 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69016 (Continued) Here are Recent Achievements and Service Enhancements: Recent Achievements and Service Enhancements .... o .A • SCADA system renewal It ' ' -7 • Reduction of the Western Union convenience fee R • Installation of voltage test R 7. g stations f Ai • Camp Pendleton water and sewer project and... Extension of the Norfolk Water Services Contract • Extends existing agreement through 2060 • Provides evergreen provision • Includes a new Water Sales Agreement --I Norfolk,Virginia Beach agree to$225 million water deal ,, =� -. -01#1\ '' '..r ,,,, _. _ ===rs=a::emsr X2.---z•Mlr_ z==-a-- _"ri-T,'I fir.:-,n `s_-c.:5. i_ _ :--. .s._. r.- d..: March 12,2019 17 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)- WASTE MANAGEMENT UTILITY FUND ITEM#69016 (Continued) Here is an overview of the Proposed Water Rate Increase FY 2020: Proposed Water Rate Increase FY 2020 • The Water Sales Agreement with Fiscal Water Water Norfolk commenced in January,2019 Year Service Commodity Availability per TGal • Partial-year cost of the new agreement 2010 $4.10 $4.10 absorbed with no rate increase 2011 $4.41 $4.41 • Full-year cost for FY2020 is$4.8 million, 2012 $4.41 $4.41 escalating annually by CPI 2013 $4.41 $4.41 • A$0.49 increase in the water rate is 2014 $4.41 $4.41 necessary to support this expense 2015 $4.41 $4.41 • New water rate will result in a monthly 2016 $4.41 $4.41 increase of$2.45 to the average 2017 $4.41 $4.41 residential water charge 2018 $4.41 $4.41 • Virginia Beach will continue to have the 2018 $4.41 $4.41 lowest average residential water charge 2020 54.41 $4.90 in the region Here is the Comparative Municipal Water Charges and Rankings of surrounding cities with the City ranked#1: Comparative Municipal Water Charges and Rankings 5,000 Gallons 5,000 Gallons Municipality Rank I Consumption atConsumption at Current Rate($4.41)I Proposed Rate($4.90) Virginia Beach 1 $26.46 $28.91' Portsmouth 2 $31.20 $31.20 Norfolk 3 $34.16 $34.16 Hampton 4 $36.89 $36.89 Newport News 5 $37.09 $37.09 Chesapeake 6 $41.02 $41.02 Suffolk 7 $64.91 $64.91 Virginia Beach rate based on proposed FY 2020 increase;rates of other localities are as of FY 2019 March /2.2019 18 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69016 (Continued) The Public Utilities Operating Budget increased 2.8%annually due to the Norfolk Water Services Agreement: Public Utilities Operating Budget FY 2019 FY 2019 FY 2020 FY 2020 Change from FY 2019 Program Unit Amended FTE Proposed FTE Amended to FY 2020 Director's Office $515,052 4 $443,044 3 (72,008) -14.0% Engineering Divhion 11,041,007 88 8,412,040 78 (2,628,967) -23.8% Regulatory Management, 0 0 4,282,200 0 4,282,200 NA Operations and Maintenance Lake Gaston Facilities 3,327,940 0 3,383,019 0 55,079 1.7% Water Services Contract 29,130,000 0 31,673,875 0 2,543,875 8.7% Operations Division 34,007,785 250 32,046,193 238 (1,961,592) -5.8% Business Division 9,703,378 73 9,119,578 70 (583,800) -6.0% Technical Services Division 0 0 2,425,063 26 2,425,063 NA Debt Service 19,397,596 0 21,792,751 0 2,395,155 12.3% Retiree Health Care&Reserves 1,631,840 0 2,410,500 0 778,660 47.7% Transfers to Other Funds 22.761.825 0 19.232.732 0 (3.529.093) -15.5% Total $131,516,423 415 $135,220,995 415 $3,704,572 2.8% This chart provides a break-down of FY 2019-20 Expenditures: FY 2019-20 Expenditures 7ten,ters Raaerv« 1% Personnel Pay-As-You-Go 24% Debt Service 16% Contractual Smoke 10% Capital Outlay 2% Supplies and Other Interne!Smokes U7% 2% 7% Water Smokes Contract Water Sales Agreement 20% 4% March /2, 20/9 19 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69016 (Continued) Here is a break-down of FY 2019-20 Revenues: FY 2019-20 Revenues Sewer Charges 49% Water Charges 44% Miscellaneous Federal Interest Water and Sewer Transfers for Ming Revenue Reimburument Line Connections Support 3% 1% 2% 1% Here is an overview of the six(6)year CIP FY 2020 to FY 2025: Capital Improvement Program FY 2020 to FY 2025 • FY 2020 Capital Budget=$30.4 million • $11.9 million for Water • $18.5 million for Sanitary Sewer • Six-year Capital Improvement Program=$204.4 million • $63.9 million for Water • $140.5 million for Sanitary Sewer • Continue to address aging infrastructure • Ensure compliance with regulatory mandates El —I._474"1 .-" :.e. ..i.7— r 14 '`Ii7_,, . 7W-:-P,..,,,,,,,t::., AN,. March 12,20/9 20 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69016 (Continued) Here are a few of the FY 2020 Highlights: FY 2020 Highlights • Water Rate increase necessary to support the Norfolk Water Sales Agreement • Continued focus on increased efficiency and effectiveness • Optimize departmental focus and coordination for capital planning/execution • Continue modernizing business processes and technologies IF°' ja . 6 imiii. S' � � • Future Focus Areas • Proactive strategies to promote member growth and development • Aging Infrastructure,aging infrastructure,aging infrastructure 'A 1 " . — '''r ...,41 - II' .11.1.111-7 It , , ss 9 ):, w4*-mit° 4 , oil Mayor Dyer expressed his appreciation to Mr. Montague for the presentation. March 12. 2019 21 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 5:19 P.M. Mayor Dyer welcome Mark Johnson, Director—Public Works. Mr.Johnson expressed his appreciation to City Council for their continued support: PUBLIC WORKS Waste Management Enterprise Fund City Council Briefing Mark A. Johnson, P.E. Director of Public Works March 12, 2019 REDUCE REUSE LW WASTE MANAGEMENT RECYCLE Here are the Program Requirements: PUBLIC WORKS Waste Management Program Program Requirements: • Develop a long term sustainable plan • Develop and fund an equipment replacement plan • Meet regulatory requirements REDUCE REUSE WASTE MANAGEMENT RECYCLE .. March 12. 2019 22 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) Here is an overview of services provided annually: PUBLIC WORKS Automated Trash Collection Bulky Item Pickup ^^^ 123,000 8,000 tons collected households per year serviced per week WOE 3 hael 200 work orders 6.43 million per week automated black container stops per year Yard Debris 136,000 tons 11.10 tons 44,000 tons •o $ colof MSW per year per household year curbside perY 2,690 125 FTE's trailer rentals for the waste i S13i 91 collection bureau realized revenue REDUCE 00 REUSE L0 WASTE MANAGEMENT RECYCLE PUBLIC WORKS Customer Service Recycling Collection 134,237 122,441 63,836 work orders phone e-mail placed per inquiries inquiries =' year per year per year 0 O • 33,000 tons Outreach and Social Media collected curbside per year ®15,203 Q 530,544 vfo r hours postFacereak ch in drop-off for VBCCC and post reach renters KVRR events Q $3lunte 321 valueer Q as 160,590 1,040 yedro off ed to city outnreach events tons centers REDUCE 0 REUSE L� WASTE MANAGEMENT RECYCLE March 12, 2019 23 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) PUBLIC WORKS Virginia Beach Landfill&Resource Recovery Center 188,124 7 51,920 cubic yards of visitors per year 14mukhprocessed 20,62941111 tons per year 466 134 tons electronics metal recycling recycling realized revenue -- 8,04401A71 landfill gas facility HMV visits realized revenue Other services:cooking oil,batteries,tires,dirt,oyster shells,pallets,concrete. REDUCE go REUSE�� WASTE MANAGEMENT RECYCLE Here are the services the current Monthly Fee of$23.00 supports: PUBLIC WORKS Waste Management Program Current Monthly Fee of$23 supports the following: — 123,000 customers - Collections • 95 gal trash cart collection-weekly • Curbside yard debris collection-weekly • Bulk item pick up-upon requests • Yard debris container-rental fee required - Recycling • 95 gallon recycle cart collection-every other week(contract) • Recycle Drop Off Sites(4) • Recycle Education and citizen outreach - VB Landfill and Recovery Center • Household Hazardous Waste disposal • Yard debris drop off/Mulch processing — Dedicated customer service staff REDUCE 00� WASTE MANAGEMENT RECYCLE NIP March 12, 2019 24 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) Here are Efficiencies Implemented to Control Costs: PUBLIC WORKS Efficiencies Implemented to Control Costs • Automation-Route Optimization • Completed in FY15 • $1.1M/year cost reduction • $2.75M reduction in equipment inventory • Reduced routes from 38 to 29 and 11.5 FTEs • Bulk Item collections • Switching from 2 to 1 operator per truck • Reduced 6 FTE's in FY17 • Yard Debris collections • Yard Debris routing and on-demand service • Yard Debris processing contract • Increased collection efficiency by converting 3 FTE positions in FY17 to contract support for peak seasons • Grand total of 29.5 FTEs reduced since 2009 • Implemented Drive-Cam—Reduction in property damage liab''. claims and improved safety REDUCE REUSE L� WASTE MANAGEMENT RECYCLE Here is the FY19 Revenue and Expenditures based on the$23.00 monthly fee: PUBLIC WORKS FY 19 Funding Revenue Expenditure o�x..w.....a nnv..Iml(on.- $L133,706 Time) Capital Trolls* 3.3)% $4.03%4 $L9.0.004 $179,944 $1,3941119 523% 0.1994 0.15% Total Budget$36,657,766 Monthly Rate-$23.00 REDUCE REUSE ' WASTE MANAGEMENT RECYCLE IL, March 12,2019 25 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) This is the FY20 Funding Need based on the proposed$25.00 monthly fee: PUBLIC WORKS FY20 Funding Need Revenue Expenditure 60-,, 04gb1 66wrwl Wp.,. to $760,450 $n6666 Tr* _ 63,950,619 Nee D. 3% t% $2,511.239 59rv496969n9 4111101 o0-rNww96 Gee6 61,300,903 76% Total Proposed Budget$38,199,122 REDUCE EUSE L� WASTE MANAGEMENTRflECYCLE On-Going Equipment Replacement includes collections vehicles and radios totaling$2.9-Million: PUBLIC WORKS Budget Drivers On-Going Equipment Replacement Waste Disposal $376,250 $376,250 Collections-Vehicles $1,146,414 $2,450,819' Yard Debris $389,200 $389,200 Radio 0 $500,000• Total $1,911,864' $3,716,269 Difference $1,804,405 Difference $1,804,405 FY19 Collections $1,146,414 Total $2,950,819' 1.$1,911,864 includes the one-time TIP Funding of$1,476,000 REDUCE REUSE-`N WASTE MANAGEMENT RECYCLE March /2, 20/9 26 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget) - WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) The SPSA Rate was negotiated to reduce costs: PUBLIC WORKS Budget Driver SPSA Rate 41?" 4.« itestigetito FY19 $65/ton $62/ton $432,000 FY20 $59/ton $59-$57/ton $288,000 1.We originally thought our monthly fee would have to go to$28/mo but this has been reduced due to the successful re-negotiation of the SPSA tipping fee 2.SPSA does not approve their FY20 budget until May REDUCE REUSE-`� WASTE MANAGEMENT flECYCIE Mr. Johnson advised it is critical to get equipment on a sustainable replacement schedule which requires $3-Million: PUBLIC WORKS Current vs Need Nead4Y20 Varian MEM Administrative Services $ 1,385,574 $ 1,361,455 $ (24,119) -1.77% Waste Disposal(Landfill) $ 2,146,637 $ 2,479,515 $ 332,878 13.43% SPSA Disposal Costs $ 9,360,000 $ 8,496,000 $ (864,000) -10.17% Waste Collections $ 13,828,451 $ 15,234,307 $ 1,405,856 9.23% Household Hazardous Waste $ 1,024,589 $ 1,046,356 $ 21,767 2.08% Yard Debris Disposal $ 1,129,480 $ 1,300,640 $ 171,160 13.16% Recycling Services $ 4,452,373 $ 4,568,258 $ 115,885 2.54% Reserves $ 169,944 $ 1,027,423 $ 857,479 83.46% Transfers $ 2,986,789 $ 2,511,239 $ (475,550) -18.94% Retiree Health Insurance $ 173,929 $ 173,929 $ - 0.00% TOTAL $ 36,657,766 $ 38,199,122 $ 1,541,356 4.04% Variance $1,541,356 TIP Funding(FY19 One-Time) g2_1700 Need $3,017,356 REDUCE RUSE L� WASTE MANAGEMENT RECYCLE March 12. 2019 27 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget) — WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) The$2.00 monthly fee increase will generate an additional$2.9-Million: PUBLIC WORKS $2 Fee Increase • $2 increase will generate an additional$2.9M • Waste Management Fee would increase from$23 to$25 — Collection Equipment-$2.4M(recurring costs) — Radio Replacement-$500K(one-time costs) — Total-$2.9M Need $3,017,356 $2 Fee Increase ($2,950,819) Anticipated SPSA Rate Savings that (5 66.537) could be used Total $0 IUC REUSE WASTE MANAGEMENT RECYCLE 'UPI Here is a comparison of waste management services in the surrounding cities: PUBLIC WORKS Service Com s arison with Ham i ton Roads Cities Vi.gsa Ilea& M.lar M.wyan•wn S S, Mune,. Nampa. ■ =.7, 0 0 0 0 0 0 ••f wakr, O 0 0 0 t ro,9.�`raw O 0 0 0 0 m•eeuwk.l 0 0 0 0 0 0 0 0 0 G gm `,:._...c.,... 0 0 0 0 0 0 0 all ,0.ro 0 0 0 0 0 0 0.0 . � 0 0 0 0 0 0 Cootov4•. 0 0 0 0 0 0 a O O O 0 0 O O 0 © 0 0 0 i •,.wv., O O O © 0 0 © w.a.., O 0 0 0 0 0 11irh1'. '0l9 28 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) Here is the Fee Comparison with Other Municipalities: PUBLIC WORKS Fee Comparison with Other Municipalities 53500 $31.63 330.00 $29.12 $30.16 12500 uy.29 52500 $2501 $26.43 520.m $10.50 Sss.m 510.m S5.00 5 Sxoit xnmmtl v n•6exn xwldt wmptm firtrawoum x<.wnxe.n REDUCE RE WASTE MANAGEMENT RECYCLE ,.. Here is an overview of Future Rate Increases: PUBLIC WORKS Future Rate Increases • Residential customer service base is not growing to meet inflationary costs • Anticipate future fee increases to keep pace with inflation, cost of vehicle replacement and future debt service • Inflationary Costs-2% CPI REUSEREDUCE r. WASTE MANAGEMENT RECYCLE March /2. 2019 29 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) Mr. Johnson provided a "re-cap"of the CIP presentation provided last week: PUBLIC WORKS CAPITAL IMPROVEMENT PROGRAM REDUCE REUSE `a WASTE MANAGEMENT RECYCLE PUBLIC WORKS Capital Improvement Program Landfill Project 3-047-Landfill#2-Phase 1 Capping • Capping of Phase 1 cell of the landfill • Cap will cover approximately 80 acres Current Programmed Appropriated FY20 FY21 ga FY23 FY24 FY25 Program k City $12,177,000 $5,935,000 0 $6,242,000 0 0 - -0 0 Funding SPSA $9,500,000 $9,500,000 0 0 0 0 0 0 Total $21,677,000 $15,435,000 0 $6,242,000 0 0 0 0 REDUCE REUSE L0 WASTE MANAGEMENT RECYCLE March 12, 2019 30 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) PUBLIC WORKS CIP-Public Works Composting Facility • Requested but Not Funded • Budget estimate-$9,000,000 • Site development and equipment for 30 acre compost and mulch facility • Planned for the ITA • Process"green waste" into compost and mulch • 44,000 tons of green waste currently go into the landfill REDUCE RUSE 11641,� WASTE MANAGEMENTREECYCIE PUBLIC WORKS CIP-Jake Sears Convenience Center • Requested but Not Funded • Budget estimate-$1,782,313 • Provides an elevated and paved surface for citizens dropping of waste at the landfill • Enables use of large containers antREDUCE REUSE WASTE MANAGEMENT RECYCLE L. March 12. 20/9 31 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) PUBLIC WORKS SPSA Waste Transfer Station (Landstown Academic Village) • Requested but Not Funded • Budget estimate-$20,928,764 • Funds design and construction of a new facility to relocate to ITA Industrial Center • Planned for the ITA alt-#q,, REDUCE REUSE to WASTE MANAGEMENT Kent' Here is the Summary: PUBLIC WORKS Summary Program Requirements: • Proposed Waste Management fee will increase from $23 to$25 — Sustainable equipment replacement program-$3.2M — Radio Replacement-$500K • Develop a long term sustainable plan • Develop and fund a sustainable equipment replacement plan • Meet regulatory requirements • Establishes future debt service reserve for Capital Project Funding REDUCEE REUS WASTE MANAGEMENT RECYCLE .. March 12.2019 32 FY 2019-20 RESOURCE MANAGEMENT PLAN(Budget)— WASTE MANAGEMENT UTILITY FUND ITEM#69017 (Continued) PUBLIC WORKS DISCUSSION REDUCE !MVP ' WASTE MANAGEMENT RECYCLE Mayor Dyer expressed his appreciation to Mr.Johnson for the presentation. March 12, 2019 33 ADJOURNMENT Mayor Robert M Dyer DECLARED the City Council Workshop ADJOURNED at 6:00 P.M. Terri H. Chelius Chief Deputy City Clerk LLAJ , Amanda Barnes, r C City Clerk City of Virginia Beach Virginia March 12, 2019