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HomeMy WebLinkAboutOCTOBER 11, 1994 MINUTES it ).I- N7it-" ii 'Ii, "WORLD'S LARGEST RESORT CITY" CITY COUNCIL AGENDA IIRI;Illl ... ..... f"ll OCTOBER 11, 1994 INFORMAL SESSION - Council Chamber - 12:30 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. ROLL CALL OF CITY COUNCIL C. CITY COUNCIL CONCERNS D. RECESS TO EXECUTIVE SESSION FORMAL SESSION - Council Chamber - 2:00 PM A. CALL TO ORDER - Mayor Meyera E. Oberndorf B. INVOCATION: Reverend Stephen E. Bradley, Jr. Resurrection United Methodist Church C. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA D. ELECTRONIC ROLL CALL OF CITY COUNCIL E. CERTIFICATION OF EXECUTIVE SESSION F. MINUTES 1 . INFORMAL & FORMAL SESSIONS October 4, 1994 G. PUSUC HEARING 1. 25th STREET PARKING LOT - $1,375,000 Contractual Obligation H. RESOLUTION/ORDINANCES cing Agreement between the City oi Virginia Beach and 1 Resolution to execute a Finan I re financing the acquisition and construction of the 25th Nationsi3ank of virginia, N.A- Street Parking Lot. 2. Ordinance re Harbour Polnt Road E)ctended (LYNNHAVEN BOROUGH): a. AMEND APPROPRIATIONS by reducing $705,000 trom sale of street closure. b. TRANSFER $504,840 trom Southeastern Expressway Acquisition ProiW #2-089 to Harbour Point Road Extended Project #2-218 to reflect changes in scope and funding. 3. Ordinance re indoor air improvements and restoration ot Capital improvement Proj@ resources for Virginia Beach Schools: a. ACCEPT and APPROPRIATE $3,ooo,ooo additional Federal Impact Aid funds to Renovations and Replacements. b. APPROPRIATE $1,700,000 to the School Division FY 1994-1995 OPerating Budget for abatement of indoor air problems. C. APPROPRIATE $234,093 in FY 1993-1994 School Reversion Funds for abatement of indoor air problems. d. TRANSFER $400,000 from Ocean Lakes High School CIP to Renovations and Replacements CIP. 4. Ordinance to APPROPRIATE $90,000 from Storm Water Utility Retained Eamings to Pine Ridge Drainage Project #2-i79 re funding increased costs for construction (PRINCESS ANNE BOROUGH). 5. Ordinance to APPROPRIATE $90,000 from Storm Water Utility Retained Eamings to Laurel Manor Drainage (interim) Project #2-190 re funding increased costs for construction (LYNNHAVEN BOROUGH). 1. CONSENT AGENDA All matters listed under the Consent Agenda are considered in the ordinary course of business by City Council and will be enacted by one motion in the form listed. If an item is removed from the Consent Agenda, it will be discussed and voted upon separately. 1 . Resolution to refer to the Planning Commission an amendment to Section 1409 of the Wetlands Zoning Ordinance of the City of Virginia Beach, Virginia, re parmfts. 2. Ordinance to AMEND and REORDAIN Sections 16-12 and 16-12.1 of the Code of the City of Virginia Beach, Virginia, re Certificates of Compliance. 3. Ordinance to authorize the City Manager to apply for the Virginia Housing Partnership Fund Urban Rehabilitation Loan Program. 4. Ordinance to TRANSFER $148,000 from Shore Drive Intersections Project #2-133 to Community Development Site Acquisition Proled #2-217 re funding increased costs for right-of-way acquisition and related legal and appraisal services. 5. Ordinance to declare EXCESS PROPERTY of the City of Virginia Beach, located at 4601 N. Greenwell Road in the petition of JAMES ORSINI and MARTHA M. ORSINI; and, authorizing the City Manager to dispose of same (BAYSIDE BOROUGH). J. PUBUC HEARING 1. PLANNING a. Application of VIRGINIA BEACH ORTHOPAEDIC ASSOCIATES and CHARLES S. FRIEDMAN for a of Zonina District Classif'cation from R- 5D Residential Duplex District to on the West side of Kempsville Road, South of Canterford Lane (1445 Kempsville Road), containing 34,848 square feet more or less (KEMPSVILLE BOROUGH). Deferred: September 13, 1994 Deferred: September 27, 1994 Recommendation: APPROVAL b. Applir-ation of TEA CELLULAR NETWORK SERVICES fbr a Permit for a 150-foot communication tower 2750 feet more or less West of General Booth Boulevard, 2640 feet more or less North of London Bridge Road (2385 London Bridge Road), containing 20 acres (PRINCESS ANNE BOROUGH). Deferred: May 10, 1994 Deterred Indefinitely: May 24, 1994 Recommendation: APPROVAL K. APPOINTMENTS BOARD OF BUILDING CODE APPEALS COMMUNITY DEVELOPMENT CITIZEN ADVISORY COMMITTEE (CAC) HISTORICAL REVIEW BOARD PUBLIC LIBRARY BOARD REVIEW AND ALLOCATION COMMITTEE (COIG) TRANSPORTATION SAFETY COMMISSION L. UNFINISHED BUSINESS 1. Reapportionment - Council Discussion 2. Legislative Package - Council Discussion M. NEW BUSINESS N. ADJOURNMENT PUBLIC HEARING - CITY COUNCIL CHAMBER OCTOBER 25,1994 - 6:00 PM RE: SANDBRIDGE SPECIAL SERVICE DISTRICT If you are physically disabled or visually impaired and need assistance at this meeting, Please call the CITY CLERK'S OFFICE at 427-4303 Hearing impaired, r-all: TDD only 427-4305 (TDD - Telephonic Device for the Deaf) 10/6/94bap AGENDA\l 0-1 1-94.PLN M I N U T E S VIRGINIA BEACH CITY COUNCIL Virginia Beach, Virgi,i, October 11, 1994 MaYor Meyera E. Oberndorf called to order the INFORAL4L SESSION of the VIRGINL4 BF,4CH CITY COUNCIL in the Council Chambel, City liall Building, or, Tu(-.Vday, ()ctober 11, 1994, at 12:30 P.M. Council Members Present: John A. Baum, Robert K Dean, William W. flarrisoii, Jr., Barbara M. Henley, Louis R. Jones, Mayor Meyera E. Obe"idarf, Nancy K Parker, Vice Mayor William I). 5essoms and Louisa M. @trayhort, Council Members Absent: Linwood 0. Brarich, III [OU7'OF CI7YI John D. Movs [0111' OF COUNTRY] V,ce Mayor Sesso-, being a C(@rporate Officer of Central Fidelity Bank, disclosed there were no matters - the agenda in which he has a ')?ersonal interest", as defined iii the Act, either individually or in his capacity as an officer of Central Fidelity Bank. ne Pice Mayor regularly makes this Disclosure as he maY Or may not know of the Bank's interest in atiy application that may c(yme before City CounciL rice Mayor Sessoms' letter of September 27, 1994, is hereby made a fart of the record - 2 - CITY COUNCIL CONCERNS 12:30 P.M. 'TEM # 38456 Council Lady Parker referenced the memorandu?n of October 5, 1994, relative the Pa@ng Managment Program, Council Lady Parkr pressed co ce-, as the holi ys were appr chig. e ax n du oa @e City Manager advised the contract,for the parking enforcement runs through the end of October; anc4 therefore will not be a problem during the Holiday SeaV,,,. Parking enforcement will be on a COMPlaint basis only ie.; if a vehicle is blocking a fire hydra,,, or sidewalk. The Parking Management Program was specifically desigried as a pilot to be evaluated after being in place for a couple of months. The CitY Staff will be meeting with the Civic orgatlizations withii the area. A survey will be drafted to all the residents in the area ft)r feedback relative this pogr,,m. Ihere are no seasonal limits on the parking permit program. This is being evaluated as to whether the parking permits should be similar to the Municipal Parking Lots with a season of April thru @epiember. 7he City Manager advised after evaluation, adjustments can be madt,. Mayor Oberndorf suggested better education of the public regarding this program. Ihe assessments relative parking in the Beach B(@rough should also iti(@lude th(, concerns of the residents throughout the city. ITEM # 38457 Council Lady Parker referenced the correspondence of Septeinber 9, 1994, from Michael J. BarreU, relative the Soccer issue. Couticil Lady Parker requested the (i(v Clerk furnish Verbatims relative the Soccer Complex. The City Manager advised fiirther corre@)ndence is beitig forward(@d from Mr. Barrett. A Briefing will be provided to City Council in Nov,-mber. October 11, 1994 - 3 - CITY COUNCIL CONC'ERNS ITEM # 38458 Council Lady Henley referenced the VDOT Resolutions DEFERPED for thirty days to be SCHEDULED for the City Council Session of October 25, 1994: Resolutions to program the Virginia Department of Transportation (VDOT) for urbaii system highway projects; alid, that the City pay its share of the total ct@,vis: Improvemeiii of Laskin Road from Birdne(7k Road to Pacific Avenue (Laskin Road, Phase II, CIP #2-165), a distance of approximately 1.0 miles. Improvement (@f Laskin Road from Route 44 to First Colonial Road (Laskin Road, Phase III, CIP #2-264), a &stant@e of approximat(!Iv 1. 4 miles. Improvemeiit (,f I,errell Parkway from Landvtown Road to North Courthouse Lo()p (Ferrell Parkway, Phase II, CIP #2-305), a distai7ce of ap[)roximately 2.2 mil(@s. Improvemeitt of Ferrell Parkway from Princess Anne Road to C,eneral Booth Boulevard (Ferrell Parkway, Phase V, CIP #2- 096), a distan(e of appraximately 2.7 miles Council Lady Henley advised the coricerns of the Linlier Community related to the front row of houses bordering on a 6-lane highway. The residents anticipate these houses will be less desirable for residential, and there will be pressure for converting those houses t() some other use. 7he character of the neighborhood will be entirely different. Council Lady Henley e-xpressed concern relative the City's habit of rmking extremely wide 6 to 8-lane highways. Council Lady Ifenley believed that this was not always desirable. 7hese highwa),s (annot be crossed on foot or I)y bicycle. Iti many places, after the turn lanes are installed, these lanes arc- well (Yver ten lanes wide. Ilazardous highway situations are being created, particularly at ititersc(--ii()iis, where pedestriaiis cannot cross. Councilman Harrison refereiiced the scheduling of the various phases of improvements to Laskin Road i.e, the transition of Iaskin Road at (;reat Neck to the T,'irst Colonial corridor, which is highly commercialized, transitions back t(, residential and then to th(, Occanfront. Councilman Harrison has been contacted by a number of businesses iii the phase betwe@i Great Neck and First Colonial Roady inquiring as to the reasott for tljis phase being scheduled behitid the other phases. These businesses desire to eliminate the feeder road sititatiott, which has beeit the cau.@e of numerous traffic accidents. Councilman Baum reitlrated (,@,)uiicil Lady IIenley's coricertis relative the extremely wide highways. Mayor Oberndorf advised there was great c()rtcern, not just in the Laskin Roadl(@,eneral Booth area, but throughout the City. Mayor Oberndorf fiirther referenced the death of a (@hild in the vicinity of the neighborhoods that abut the Pembroke Area. Councilman Dean advised a year tigo, the members of the Virginia Beach Mayor's CommiUee for the Disabled were going to attempt i(@ illustrate to the City's Traffic Engineers the difficulty for disabled citizens to cross eight lanes of traffic, After lutich at @zza Ilut, they were g()ing to cross Lynnhaven Parkway to see a movie. 7he (,otnntilice subvcquently (le(@ided agai;tst this example, as same was deemed foo dangerous. October 11, 1994 - 4 - CITY COUNCIL CONCERNS ITEM # 38459 Mayor Oberndorf referenced the correspondence of Vice Mayor Sessoms. rice Mayor Sessoms enclosed a proposed resolution to invite the Institute in Basic Life Principles to consider the establishment of an Advanced Training Insfitute for troubled youths and their families in the City or elsewhere in the Hampton Roads area. ne Vice Mayor also enclosed numerous materials regarding the nature of the Institute's program and its success iri other localities. Mayor Oberndorf requested the City Staff, as well as the Juvenile Court Judges and those itivolved in Probation review same. Council Lady Strayhorn visited the Indianapolis site of this program oii July 24 aiid 25, 1994, and prepared a report, which was distributed to Members of City (.outicil and iv hereby made a lart of the record. Council Lady Parker requested itif()rmati()n relative fundiiig and possible locations of the Institute. October 11, 1994 5 ITEAf # 38460 A@f7ayor Af;ypera .6" SSIO r, Ober,,dor e""r'."'d a ),notion to Perinit (,'ity Co,,,,,il 'o S",@ 2 1-344 , Code of -duct i rzrglnia, ,,, ,,n f ts EXECUT@ I ded or the following PurPose: consideratio, ,for interviews appointment, r-ignation tc) @ction To r't: @Ppont--".' Boards and CO-missions. Board of Bilding Code ,n , y Appeals- C('- u ' D -IOPn,nt Cili@,!n Adviso HistOrical Review BO,2rd 'Y COmniUee I'ublic Libray Board 8-iew and Allocatio), COtnmittee 7@ansportation Saf,,ty commlvvi(,,, -i(In ot consideration of the erty for public purpose, or f of plans for the future of an erly owried or desirable for ,Sectiopi 2.1-344(A)(3). TO-Wit: Acquisition ()f Ilublic Property - Pri,,cCys Anne Iforough Dispo,vitioii )f 1roperty - Lyniihaven B(,rough UpOn motion by Vice Mayor Sessoms, seconded by Council LadyStrayhorn, City Council voted to proceed into EXECUTIVE SESSION. Voting: 8-0 Council Members Votirig Aye: John A. Baum, Rob(-ri K Dean, William W. fiarrisoti, Jr., Barbara M. Henley, Mayor Meycra E Oberndorf Nan(,y K Parker, Vice Mayor Williain D. Sesvoms, Jr. and Louisa M. @trayhort, Council Members Voting Nay: None Council Members Absent: LinwOOd 0. Branch, III, Louis R. Joncv and Johii D. Movs October 11, 1994 FORMAL SESION VIRGINL4 PPArl] city couNcL October 11, 1994 2:00 P.M. MaYor Meyera E. Oberndorf called to order the FORUAL SESSION of the 1'7RGINL4 BF-4CH CITY COUNCIL in the Council chamber, CitY Hall Building, on 7ue@vday, october 11, 1994, at 2:00 P.M. Council Members Preset: John A. Baum, R()bert K Dean, William w. Ilarrison, jr., Barbara M. Henley, L-i, R. Jones, MaYor Mey,ra E. oblrndof Nancy K Parker, rice Mayor William D. @essoms, Jr. and @)uiva M. Strayhorn Council Members 4bsent: Lin-od 0. firaitch, III and Joh,, D. Mo.,s INVOCATION Reverend,,;tephen E. Bradley, j,. Resurrectic@n Uiiied Methodist ch,,rh -E CERTIFICATION OF EXECUTI" SESSION ITEM # 38462 city council CEQTIFIED c' .1 L@dYTSt"Y'or"4 RECESS- e Mayor Sesso-, sec"nded by COU"E THE OTION TO Upon motion bY rlc SESSION To BE IN ACCORL)ANC THE EXECUTWE om open Meeti.n! ,xempied fr only p,blic busine,@s inatters lawfullyss @ec,tive Se@SIO" bv Vir,iria law were di cus ed ill req,irements which this cerfificalion resolution appiies, ANI), ters as ver,, ide,,tified in th, motion h public busines@' mat rd, discusse, 0, considered bY Only suc were nea convening the Exec,tive Session lrtrginia Rea,,h Cily Council. Voting: 7-0 Council Members Voting Aye, @'ll'a- W lia-z-von, Jr, Barbara m Ilenley, Louis R Jones, Mayor Meyera E Oberrd(,rf, Na,,cy K Parker, rice ifa-v(@r w@illam D. Sessoms, ir. and Louiva M. ;trayhorii COuncil Members Voting Nqv None - 7 - @ I I I I I Alli -E 1. CERTIFICATION oF EXECUTRT SESSION ITEM 38462 Upon motion by Vice May()r @essoms, seconded by Council Lady Strayhorn, City Council CERTIFIED THE EXECUT@ SESSION TO BE IN ACCORDANCE WITH THE MOTION TO RECESS Only public busi;iess iiiatterv lawfully exem[@ted from Open Meeting requirements by Virgitiia law were discusse,l iti laecutive @ession to which this ccrtificati()tl resolutiort aj)plies,- ANI), Only such public business matters as were identified in the motion convening the Executive Session were heard, discussed or considered by Virginia Reach City (,@ounciL Voting: 7-0 Council Members Voting Aye. William W. Harrison, Jr., Barbara M. Iienley, Louis R. Jones, Mayor Meyera E. Oberndorf, Nancy K Parker, Kice May()r William I). @essoms, Jr. and Louisa M. Strayhorn Council Members Voting Nay: None Council Members Absent: John A. Baum, Lirtwood 0. Branch, III. Robert K. Deaii and John D. moss October 11, 199,4 CERTIFICATION OF EXECUTIVE SESSION VIRGINIA BEACH CITY (70UNCIL WHEREAS: The VirgiDia Beach City Council convened into EXECUTIVE SESSION, pursuant to the affinnative vote rccorded in ITEM # 38461, Page No. 5, and in accordance with the provisions of The Virginia Freedom of Information Act; and, WHEREAS: Section 2.1-344. of the Code of Viiginia requircs a certification by the goveming body that such Executive Session was conducted in confomiity with Virginia law. NOW, THEREFORE, BE ]rF RESOLVED: Tbat the Virginia Bcach City Council hereby certifies that, to the best of each member's knowledge, (a) only public business mattcrs lawfully exempted from Open Meeting requirements by Virginia law were discussed in Executive Session to which this certification resolution applies; and, (b) only such public business matters as were identified in the motioil convening this Execut@,e Session were heard, discussed or considered by Virginia Beach City Council. R h Hdgr, Sith, CMCI@E City Clerk October 11, 1994 8 Item II-EL. MINUTES ITEM # 38463 Upon motion by Vice Mayor Sessotm, seconded by Council Lady Strayhorn, City Council APPROVED the Minutes of the INFORMAL AND FORMAL SESSIONS t)f October 4, 1994. Voting: 7-0 Council Members Voting Aye: William W. Ilarrison, Jr., Barbara M. Henley, Louis R. Jones, Mayor Meyera E. Oberridorf, Nancy K. Parker, rice Mayor William D. Sessoms, Jr. and Louisa M. @trayhorn Council Members Voting Nay: Non e Council Members Absent: John A. Baum, Liitwood 0, Braiich, Ill. Robert K Dean and John D. Moss October 11, 1994 - 9 - em I -G PUBLIC HEARING ITEM # 38464 MaY- Oberndorf DECLAPED A PUBLIC HEARRNG: 25th STREET PARKFNG LOT - $1,375,000 Cont,,,t,,l obligation. There being no speakers, Mayor Oberndorf CLOSED THE PUBLIC HEARING. October 11, 1994 10 - RESOLUTIONIORDINANCES ITEM # 38465 Upon motion by Vice Mayor ;essoms, seconded by Councilmati J()nes, City Council AD40PTED: Resolution to execute a Financing Agreement betweett the City of Ilirginia Beach and NationsBank of Virginia, N,4., re firtancing the acquisition and constructioii of the 25th Street Parking Lot. Voting: 8-0 Council Members Voting Aye: John A. Baum, Robert K Dean, Barbara M. llcnley, Louis R. Jones, Mayor Meyera P,. Oberndorf Nancy K Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. Strayhorti Council Members Voting Nay: None Council Members Abstaining: William W. IIarris(@ii, Jr., Council Members Absent: Linwood 0. Branch, III and John D. Mosv Councilman Harrison ABSTAINED pursuant to 5ection 21-639.14(P,) ()f the Code of Virginia. Councilman Harrison is a partner in the law firm of Willcox & @vage earning an annual income in excess o@ $10,000. Willcox & Savage represents NationsBank with respect to the matter before City Council,- however, he personally does not provide representational service to NationsBank with respect to the matter before Council. Councilman Harrison's letter of October 11, 1994, is hereby made a part of the record. October 11, 1994 At a regular meeting of the City Council of the city of Virginia Beach, Virginia, held on the 1:Lth day of October, 1994, at the time and place established by the city Council for Such meetings, and at which the following members were present and absent: PRESENT: John A. Baum Vice Mayor William D. Sessoms, Jr. Robert K. Dean Louisa M. Strayhorn William W. Harrison, Jr. Barbara M. Henley Louis R. Jones Mayor Meyera E. Oberndorf Nancy K. Parker ABSzNT: Linwood 0. Branch, III John D. Moss the following resolution, having been the subject of a public hearing held on October 11, 1994, in accordance with Section 15.1- 227.8 of the Code of Virginia oi 1950, as amended, was adopted by the affirmative roll call vote of a.raajority of all members of the City Council, the ayes and nays being recorded in the minut,s of such meeting as shown below: VOTE John A. Baum Aye Robert K. Dean Aye William W. Harrison, Jr. Abstain Barbara M. Henley Aye Louis R. Jones Aye Mayor Meyera E. Oberndorf Aye Nancy K. Parker Aye Vice Mayor William D. Sessoms, Jr. Aye Louisa M. Strayhorn Aye RESOLUTION APPROVING A FINANCING AGREEMENT BETWEEN THE CITY OF VIROINIA BRACB, VIRGINIA, AND NATIONSBANK OF VIRr,]:NIA, N.A., PROVIDIXG FOR FINANCING OF THE ACQUISITIO]M OP A PARXINR. FACILITY AND AUTHORIZING THE EXECUTION THEREOF WHEREAS, the Finance Department of the City of Virginia Beach, Virginia (the "City") , acting pursuant to directions of the City Council, has submitted to various banks and financial institutions a request for proposals for tax-exempt borrowing to finance the acquiSition of a site for a parking faci-lity located in the City on the southwest corner of 25th Street and Pacific Avenue (the "Parking Facility"), and the Finance Department has received four proposals in response to such request; and WHEREAS, Government Finance Associates, Inc., and Government Finance Group, inc., the City's financial advisors, and the City's administration have advised the City Council that the proposal of NationsBank of Virginia, N.A. (the "Bank") , a copy of which is attached to this resolution (the "Proposaill) , offers to provide a tax-exempt variable rate or fixed rate financing to the City and have recommended its acceptance as the best proposal received; and WHEREAS, there has been presented to this meeting a draft of a financing agreement between the City and the Bank (the "Financing Agreement") to implement such financing; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: 1. The City Council determines that it is in the best interest of the City to accept the Proposal and enter into the Financing Agreement. 2. The Financing Agreement shall provide for a loan by the Bank to the City in an aggregate principal amount of $1,375,000, shall provide for final payment on the loan to be made no later than April 1, 2004, and shall provide that the loan shall bear interest at a variable or fixed rate calculated pursuant to the provisions of Section 2 of the Financing Agreement, but in no event to exceed 15% per year. The City shall use such amount solely t, reimburse itseif for expenditures made in connection with acquisi- tion of a site for the Parking Faciiity. 3. The City Manager is authorized a,d directed to execute the Financing Agreement, which shall be in substantially the form presented to this meeting, which is approved, with such comple- tions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the city Manager, whose execution thereof shall constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. The city Manager is further authorized and directed to execute the Proposal as modified by the terms of this Resolutic'n and the Financing Agreement. 4. The officers of the City are authorized and directed to execute and deliver all certificates and instruments and to take all actions necessary or desirable in connection with the execution and delivery of the Financing Agreement and the completion of the financing. 5. The obligations of the city under the Financing Agreemer,t shall be limited obligations payable solely from funds t, )e appropriated by the City Council f,r such purpose and shall not constitute a debt of the City within the meaning of any cons+--itu- tional or statutory limitation or a pledge of the faith and credit or the taxing power of the City beyond any fiscal year fer which the City has appropriated. 6. The City believes that funds sufficient to make payment of all amounts payable under the Financing Agreement can be obtained. While recognizing that it is not empowered to make any binding commitment to make such Payments beyond the current fiscal year, the City Council hereby states its intent to make annual 2 make all e appropriations for future f scal years in amounts suffici nt to such payments and hereby recommends that future councils do likewise during the term of the Financing Agreement. The City Council directs the Cit-Y Manager, or such other officer as may be charged with the responsibility for preparing the City,, annual budget, to include in the budget for -each fiscal Year during the term of the Financing Agre ent an amount suffici-ent to make the Payment of all amounts payab e under the Financing Agreement. The City Manager is authorized and directed to deliver to the Bank within ten days after the adoption of the budget for each fiscal year, but not later than ten days after the beginning of the fiscal year, a certificate stating whether an amount equal to the estimated amounts payable under the Financing Agreement during such fiscal year has been appropriated by the City Council in any such budget. 7. (a) The City covenants that it will not take or omit to take any action the taking or omission of which will cause the Financing Agreement to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and regulations issued pursuant thereto, or otherwise cause interest due under the Financing Agreement to be includable in the gross income of the registered owner thereof under existina statutes. Without limiting the generality of the foregoing, the-City shall comply with any provision of law that may require the City at any time to rebate to the United States any part of the earnings derived from the investraent of the funds received under the Financing Agreement, unless the City receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent interest due under the Financing Agreement from being includable in the gross incoine for federal income tax purposes of the holder thereof under existing law. (b) The City covenants that during the term of the Financing Agreement it will not use or permit the use of the Parking Facility other than for the purpose of performing one or more governmental or proprietary functions of the City consistent with the scope of the City's authcrity and will not use or permit the use of the Parking Facility in a trade or business of any person or entity other than the City. Notwithstanding the foregoing sentence, the City may enter into a management contract with any person or entity for the operation and management of the Parking Facility, provided that the city receives an opinion of nationally recognized bond counsel that such management contract will not cause interest due under the Financing Agreement to be includable in the gross income for federal incoine tax purposes of the Bank under existing law. 8. Such officers of the City as may be requested are authorized and directed to execute an appropriate certificate setting forth the expected use and investment of the funds received under the Financing Agreement, and any elections such officers deem desirable regarding rebate of earnings to the United States, for purposes of complying with Section 148 of the Code. Such certifi- 3 cate and elections shall be in such form as may be requested by bond counsel for the City. 9. All other actions of officers of the City and the City Council in conformity with the purposes and intent of this Resolu- tion and in furtherance of the financing are hereby ratified, approved and confirmed. 10. All resolutions or parts of resolutions in conflict herewith are repealed. ii. This Resolution shall take effect immediately. The undersigned Clerk of the City of Virginia Beach, Virginia, certifies that the foregoing constitutes a true and correct extract from the minutes of a regular meeting of the City Council of the City of Virginia Beach, held on the llth day of October, 1994, and of the whole thereof so far as applicable to the matters referred to in such extract. WITNESS my signature and the seal of the (.ity of Virginia Beach, Virginia, this day of October, 1994. Clerk, City of Virginia Beach, Virginia (SEAL) lu DEPARTMENT APPROVED AS TO FORFO, C"' 4 TERMS AND CONDITIONS SeL)tember 8th, 1994 The following are the general terms and conditions of the proposed credit facility required by the City of Virginia Beach (Borrower). These terms and conditions are not meant to be exhaustive, but are meant to give the Borrower a general reference from which a loan agreement will be constructed. Borrower: City of Virginia Beach Amount: $1,375,000@00 Type: Tax exempt financing provided through NationsBank's (Bank) ptit el - ------ Purpose: Acquisition cost of a parking lot on the Southwest corner of 25th Street and Pacific Ave , Virginia Beach, Virginia. Mattirity: 10 years from closing (within 60 days of acceptance). Payment Schedtile: Interest shall be paid semi-annually, payable on April I and October I of each year. Principal will be payable on April I according to the following schedule: 1995 - $ 90,000 2000 - $140,000 1996 - 115,000 2001 - 150,000 1997 - 120,000 2002 - 155,000 1998 - 130,000 2003 - 165,000 1999 - 135,000 2004 - 175,000 Interest Rate: If the bond or note is a "qualified tax-exempt obligation', as defined in Section 265 (b) of the Internal Revenue Code, the interest rate shall be at Borrower's option either (A) Variable rate: A floating rate equal*t@k@ fqllgwing schedule is available to the City. The City may convert from one contract time period to another with written notice ten business days prior to the expiring contract. It is understood that this debt is not a General Obligation of the City of Virginia Beach, but subject to annual appropriation by the City Council. The Bank is effectively reliant on the good faith of the City of Virginia Beach to honor its obligation to make payments on the debt. This good faith would take the form of a moral obligation from the City pursuant to documentation satisfactory to the Bank. The moral obligation would apply to both the unsecured or secured option. Closing Costs and Expenses: NationsBank will cap its counsel fees and expenses at $2,500. This cap is based on the Borrowers compliance with the Commitment letter (this does not include the City's attorney fees for preparation, opinions or any other like costs) and due to the relatively standard nature of this transaction assumes minimal negotiation and document drafting. Any other costs incurred by the Borrower will be at the Borrowers expense, such as title insurance if secured by a Deed of Trust. Additional Condition to Closing: Prior to the making by the Bank of the first advance to the Borrower, the following conditions precedent shall have occurred- 1. The Bank shall have received an unqualified opinion from the Borrowees Bond Counsel, regarding the validity of the Note(s) and the exemption of the interest thereon from Federal and Virginia income @ation. 2. The Bank shall have received, duly executed, all loan agreements, borrowing resolutions, and other documents necessary or advisable in connection with the loan, all of which shall be in form and substance satisfactory to the Bank. 3. The Borrower shall certify compliance with Federal arbitrage rebate rules, or certify that it is exempt from arbitrage rebate requirement. Reporting Requirement: So long as the Borrower is indebted to the Bank, the Borrower shall submit to the Bank the following: Within one hundred and eighty (I 80) days following the end of the Borrower's fiscal year end, a balance sheet and income statement prepared in accordance with generafly accepted accounting principles on an Audited basis by an independent c-ertified public accountant including all normal and reasonable financial notes. Covenants: The Borrower shall, so long as this commitment remains outstanding or its indebtedness to the Bank remains unpaid@ @ Utilize its best efforts to I .A Maintain a long term general obligation rating by the Nationally recognized rating agency of "Aa/AA" or better. 2. Comply with all statutes and governmental regulations. 3. From time to time provide the Bank with such other information as the Bank may reasonable expect Custom*er Libor* Rate 4.875 30 day Libor minus 49 4.38 4.9375 60 day Libor minus 5 1 4.42 5.00 90 day Libor minus 54 4.46 5.3 125 180 day Libor minus 64 4.67 5 8125 1 year Libor minus 82 4.99 *Libor as of 9/8/94, this rate will vary overtime (B) Fixed rate A fixed rate option shall be the yield of the Ten Year Treasury Note as quoted in the Wall Street Journal (the day pfior to closing) minus 67 basis points which on September 8, 1994 is 6.84%. (C) If the variable rate option is chosen, the Borrower may make a one time conversion to a fixed interest rate The rate to be negotiable at the time of conversion. Commitment Fee: There will be no commitment fee. Prepayment: (A) Under a variable rate option no prepayment penalty would be applied. (B) Under a fixed rate option: In the event all or any portion of this loan is prepaid by Boffower, whether voluntarily or by reason of default, acceleration or otherwise, the Borrower shall within fifteen (I 5) days of any request by Lender, pay to Bank any loss or expense which Bank may incur or sustain as a result of any such prepayment. A statement as to the amount of such loss or expense, prepared in good faith and in reasonable detail by Bank and submitted by Bank to the Borrower shall be conclusive and binding absent manifest error in computation. Calculation of all amounts payable to Bank under this paragraph shall be made as though Bank shall have actually funded or committed to fund the loan through the purchase of an underlying deposit in an amount equal to the amount of the loan and having a maturity comparable to the loan; provided, however, that Bank may fund any loan in any manner it sees fit and the foregoing assumption shall be utilized only for the purpose of calculation of amounts payable under this paragraph Security: This facility will be unsecured, Other: The Borrower agrees that it will pay such additional interest, penalties and amounts as may be assessed on and finally adjudged to be owing by the Bank as a result of a determination that interest on the (Bond or Note) is subject tg grgm income for Federal income tax purposes or as a result of a matefial change in applicable@ tax laws. Please acknowledge acceptance of this commitment by having this letter signed by the properly authorized Official(s) and returned to the Bank. Acceptance must occur by October 14, 1994 for this commitment to remain valid, The undersigned hereby accepts the foregoing commitment and the terms and conditions herein set forth and agrees to be bound thereby: City of Virginia Beach By: Date: Title:-- RI-PF\t:\VAB\25th\FinAgmt.006 10/05/94 - 5:45p.m. FINANCING AGREEMENT THIS FINANCING AGREEMENT dated as of [November _], 1994 (the "Agreement"), by and between the CITY OF VIRGINIA BEACH, VIRGINIA, a political subdivision of the Commonwealth of Virginia (the "City"), and NATIONSBANX OF VIRGINIA, N.A., a national banking association organized under the laws of the United States of America (the "Bank"), provides: WHEREAS, the City has solicited proposals for a tax-exe-mpt borrowing to finance the acquisition of a site for a parking facility located in the City on the southwest corner of 25th Street and Pacific Avenue (the "Parking Facility"), and has selected the proposal of the Bank as in the best interests of the City; and WHEREAS, the City and the Bank desire to enter into this Agreement to implement the Bank's proposal; NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained and other valuable consideration, the parties agree as follows: 1. Loan by Bank. The Bank agrees to lend the City, upon the terms and conditions set forth herein, a principal amount equal to $1,375,000. The City shall use such amount solely to reimburse itself for expenditures made in connection with acquiring the site for the Parking Facility. 2. Interest. The principal amount loaned under this Agreement shall bear interest on the unpaid principal from (November _], 1994, calculated in accordance with one of the interest rate periods set forth below (individually, the "Interest Rate Period") and, when calculated, such rate shall be in effect for the duration of such Interest Rate Period. Interest shall be due and payable beginning April 1, 1995, and continuing semiannually on each April 1 and October 1 thereafter. The interest rate shall be calculated by the Bank on the business day preceding the first day of any Interest Rate Period based on the London Interbank Offered Rate ("LIBOR") (as expressed on page LIBO on Reuters Money Rate Service on that same date) corresponding to such Interest Rate Period, less the number of basis points set forth below: Interest Rate Period Rate Calculation 30 day 30-day LIBOR Rate less 49 basis points 60 day 60-day LIBOR Rate less 51 basis points 90 day 90-day LIBOR Rate less 54 basis points 180 day 180-day LIBOR Rate less 64 basis points 1 year 1-year LIBOR Rate less 82 basis points The initial Interest Rate Period shall be days] Cone year) and such period shall continue until the date,-if any, on which the Interest Rate Period is converted to a different period as described in this section. The City shall have the right to convert any Interest Rate Period to any other Interest Rate Period by having the Director of Finance give notice to the Bank (in substantially the form attached as Exhibit A) at least ten (10) business days prior to the expiration date of the then current Interest Rate Period. The City shall also have the right at any time to convert the calculation of interest due under this Agreement from a variable rate under any Interest Rate Period to a fixed rate, such fixed rate and prepayment penalty provisions, if any, to be negotiated at the time of such conversion. Notwithstanding anything herein to the contrary, at no time shall the interest due under this Agreement exceed the rate of 15% per annum. 3. Principal. The principal amount loaned under this Agreement shall be payable in annual installments on April 1 in years and amounts as follows: Year Amount Year Amount 1995 $ 90,000 2000 $140,000 1996 115,000 2001 150,000 1997 120,000 2002 155,000 1998 130,000 2003 165,000 1999 135,000 2004 175,000 4. Prepayment. The City may prepay the principal amount loaned under this Agreement at its option, as a whole or in part, at any time upon five (5) days' notice and payment of all or any portion of the principal in multiples of $1,000 plus interest accrued on the amount prepaid to the date of prepayment. Any prepayment in part shall be applied first to interest accrued on the amount prepaid and then to installments of principal in inverse chronological order but shall not postpone the due date of any subsequent payment, or change the amount of such installment, unless the City and the Bank agree otherwise in writing. S. Limited obligation. The obligations of the City under this Agreement shall be limited obligations payable solely from funds to be appropriated by the Council of the City (the "City Council") for such purpose. This Agreement shall not be deemed to constitute a debt or a pledge of the faith and credit of the City within the meaning of any constitutional or statutory limitation, and neither the faith and credit nor the taxing power of the City is pledged to the payment of amounts payable under this Agreement or other costs incident thereto. 6. Security. The City does not grant a security interest in, or a lien on, the Parking Facility. -2- 7. Declaration of Essentiality. The City Council has determined that, based on the necessity for additional parking in the 25th Street area and based on the economic benefits to be derived from making a prime commercial and resort area more accessible to the public, the acquisition of the Bite for the Parking Facility and the financing of the same under this Agreement are essential to the proper and efficient operation of the City. The City Council anticipates that the financing of the Parking Facility will continue to be essential to the proper and efficient operation of the City through the fiscal year ending June 30, 2004. S. Appropriations. The City reasonably believes that funds sufficient to make payment of all amounts payable under this Agreement can be obtained. The City Council has appropriated in its budget for the fiscal year ending June 30, 1995, an amount sufficient to make the payments of principal of and estimated interest due under this Agreement that will be payable in such fiscal year. While recognizing that it is not empowered to make any binding commitment to make payments due under this Agreement beyond the current fiscal year, the City Council, in authorizing the execution of this Agreement, has stated its intent to make annual appropriations sufficient to make the estimated payments of principal of and interest due under this Agreement and has recommended that its successors continue to do so during the term of this Agreement. The City Council has directed the City Manager or other officer charged with the responsibility for preparing the City's annual budget to include in the budget for each fiscal year during the term of this Agreement an amount sufficient to make the estimated payments of principal of and interest due under this Agreement. The Bank acknowledges and agrees that notwithstanding the inclusion of such amount in any budget the City Council is under no legal obligation to include such amount in the budget as adopted. The City Council has directed the City Manager to deliver to the Bank within ten (10) days after the adoption of the budget for each fiscal year, but not later than ten (10) days after the beginning of the fiscal year, a certificate stating whether an amount equal to the estimated payments of principal of and interest due under this Agreement during such fiscal year has been appropriated by the City Council in any such budget. 9. Annual Financial Statements. The City shall furnish to the Bank within one hundred eighty (180) days after the end of each fiscal year of the City a copy of the annual audit, prepared by an independent certified public accountant, of the financial conditions of the City for the preceding fiscal year. 10. Termination. If by June 15 of any year the City Council has failed to appropriate an amount sufficient to make the estimated payments dus under this Agreement during the following fiscal year, the City Manager shall give notice to the Bank of such failure to appropriate within five (5) business days thereafter. If no such appropriation has been made by August 1 of such year, the City and the Bank each shall have the right to terminate this -3- Agreement by giving notice to the other party. In addition, if the City shall fail to make any payment of principal of or interest due under this Agreement and such failure shall continue for seven (7) days, the Bank shall have the right to terminate this Agreement by giving notice to the City. Upon termination, the entire unpaid principal of and interest due under this Agreement shall immediately become due and payable, subject, however, to the appropriation of sufficient funds by the City Council for such purpose. 11. Tax Covenants. (a) The City covenants that it will not take or omit to take any action the taking or omission of which would cause the loan made under this Agreement to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and regulations issued pursuant thereto, or otherwise cause interest due under this Agreement to be includable in the gross income of the Bank under existing law. Without limiting the generality of the foregoing, the City shall comply with any provision of law that may require the City at any time to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the loan, unless the City receives an opinion of nationally recognized bond counsel that such compliance is not required to prevent interest due under this Agreement from being includable in the gross income for federal income tax purposes of the Bank under existing law. (b) The City covenants that during the term of this Agreement it will not use or permit the use of the Parking Facility other than for the purpose of performing one or more governmental or proprietary functions of the City consistent with the scope of the City's authority and will not use or permit the use of the Parking Facility in a trade or business of any person or entity other than the City. Notwithstanding the foregoing sentence, the City may enter into a management contract with any person or entity for the operation and management of the Parking Facility, provided that the City receives an opinion of nationally recognized bond counsel that such management contract will not cause interest due under this Agreement to be includable in the gross income for federal income tax purposes of the Bank under existing law. (c) (1) In the event that at any time whether before or after payment of this loan or all or any part of any payment of interest due under this Agreement, any interest paid or accrued by the Bank by reason of the Bank's owning this loan or receiving interest on this loan is determined by the commissioner or any District Director of the Internal Revenue Service or any court of competent jurisdiction not to be excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Codelf) as in effect on the date hereof, then the City shall pay to the Bank, as supplemental interest, in legally available funds appropriated for such purpose at the time or times specified herein an amount which, after giving effect to all taxes attributable to the inclusion of such amount in the gross income of the Bank under -4- the laws of any Federal, state or local governmental or other taxing authority (such taxes to be calculated at the maximum statutory tax rate applicable to the Bank, after taking into account deductions attributable to imposition of state and local taxes), shall be equal to the amount of the tax attributable to this loan multiplied by the rate of the preference or similar tax. (2) If the City becomes obligated to make payments to the Bank pursuant to subparagraph (1), the amount of the income or similar item or of the nondeductible item in respect of any quarterly period ending within or after the first taxable year of the Bank during which such payments first become payable shall be calculated on the basis of the data in the most recent quarterly period of the Bank prepared prior to the date interest on this loan was or is due and payable, as if (i) the income or similar tax were imposed, or the amount of the nondeductible item were computed, on a quarterly basis, and (ii) the quarterly period ended on the date interest on this loan was or is due and payable. The amount of the income or similar item or of the nondeductible item in respect of any other period shall be computed on the basis of the Federal income tax return of the Bank. The computation of any amount payable under this paragraph 2 shall be made in good faith by the Bank, but absent manifest error shall be conclusive as to the amount thereof. Every reference to the Bank shall include the entity filing tax returns in which the Bank as holder of this loan reports it income. (3) The intent of the foregoing provisions is to fix for the Bank a yield on this loan equal at all times to the yield receivable under tax law, regulations and interpretations existing as of the date of the execution of this Agreement, which yield has been used in determining the tax exempt interest rate, and to impose on the city the obligation to pay supplemental interest in an amount necessary to compensate the Bank if the interest on the loan is not excluded from gross income. Notwithstanding the foregoing, at no time shall the interest rate under this Agreement exceed the rate of 15% per annum. The foregoing provisions should be construed accordingly. 12. Affirmative Covenants. The City covenants that for the term of this Agreement, it shall (a) use its best efforts to maintain a long-term general obligation rating by a nationally recognized rating agency of "Aall, "AAII, or any other designation constituting the second highest rating category maintained by a nationally recognized rating agency; (b) comply with all applicable federal and state statutes and regulations applicable to the Parking Facility and this financing; and (c) provide to the Bank from time to time such other information as the Bank may reasonably request. If the city's long-term general obligation rating falls below the rating set forth in (a) of the preceding sentence, but does not fall below a rating of "All or any other designation constituting the third highest rating category maintained by a -5- nationally recognized rating agency, then the Bank may adjust the interest rate on the obligation under this Financing Agreement to a rate that is not in excess of the Bank' s tax-exempt lending rates to local governments with such a rating. If the City's long-term general obligation rating falls below the rating of "A" or any other designation constituting the third highest rating category maintained by a nationally recognized rating agency, then the Bank shall have the right to renegotiate the terms of the City's obligation under this Financing Agreement, including, without limitation, the payment provisions and security for such obligation. If the City and the Bank are unable to agree on such revised terms, then the Bank may declare that the loan is payable in full at such time; provided, however, the City's obligation to pay the loan will be subject to legally available funds appropriated for such purpose. 13. Expenses. The City shall pay all fees, expenses and other amounts incurred by the Bank in connection with entering into this Agreement, including the Bank's legal fees, in a total amount not to exceed $2,500. 14. Notices. All notices, requests and other communications under this Agreement shall be in writing or by telephone, to be promptly confirmed in writing, and shall be given to the City at Finance Department, City Hall Building, Room 220, Virginia Beach, Virginia 23456 (Attention: Director of Finance), telephone 804- 427-4681, and to the Bank at One Commercial Place, Norfolk, VA 23501 (Attention: Ms. Ellen 0. Keeter), telephone 804-441-4000, or at such other address or telephone number or to the attention of such other person as may be given to the other party in writing. 15. Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by the City and the Bank. 16. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 17. Virginia Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia. 18. Severability. If any clause, provision or section of this Agreement shall be held illegal or invalid by any court, the illegality or invalidity of such clause, provision or section shall not affect the remainder of this Agreement which shall be construed and enforced as if such illegal or invalid clause, provision or section had not been contained in this Agreement. If any agreement or obligation construed in this Agreement is held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the City and the Bank, as the case may be, only to the extent permitted by law. -6- 19. Term of Agreement. This Agreement shall be effective upon its execution and delivery. Except as otherwise specified, the City's obligations under this Agreement shall expire upon payment in full of the principal and interest due under this Agreement and all other amounts payable by the City under this Agreement. 20. Counterparts. This Agreement maY be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective authorized officers. CITY OF VIRGINIA BEACH, VIRGINIA By C ty Manager NATIONSBANK OF VIRGINIA, N.A. By Its -7- EXHIBIT A FORM OF CONVERSION NOTICE TO BANK (Letterhead of Director of Finance] NationsBank of Virginia, N.A. Commercial Banking Department One Commercial Place Norfolk, VA 23501 (Attention: Financing of 25th Street Parking Facility Dear Pursuant to the provisions of Section 2 of the Financing Agreement dated (the "Financinq Agreement") , between the City of Virginia Beach, Virginia (the "City"), and NationsBank of Virginia, N.A., the undersigned hereby notifies the Bank that the City will exercise effective , its option to convert its interest rate calculation method to the applicable LIBOR rate for the (30 day/60 day/90 day/180 day/l year period] minus basis points, calculated in compliance with the schedule referenced in such Section 2. Should the Bank have any questions concerning this conversion, please do not hesitate to contact me. Sincerely, Director of Finance, City of Virginia Beach, Virginia Policy Report 25TH STREET PARKING LOT FINANCING Prepared by Patricia A. Phillips, Director of Finance Richard N. Dunford, Finance Department BACKGROUND In creating Tle Tourism Growth Investment Fund (TGIF), City Council established and authorized a number of capital projects to receive support Erom the fund. One such project was Project 2-215 Resort Area Parking Improvements. This project was to provide needed public parking in the resort area to compliinent the tourist development effort in that area. As a means of financing the total project costs, the most recent Capital bnprovement Program (CIP) identified several funding sources. TGIF pay-as-you-go funds and 1991 Charter Bonds provided funding for the design and construction phases of the parking lot and for site acquisition costs of $1,375,000 the CIP identffied lease/purchase financing. In early 1994 the City acquired a site on the southwest corner of 25th Street and Pacific Avenue for the development of a surface parking lot that met the criteria for this project. Improvements to the lot were completed in the summer of 1994 and the patking lot is presently in operation. Tle City's current financing need is to reimburse itseff for its prior expenditure for site acquisition. As preparation began to obtain permanent financing for the parking ]or site, the Department of Finance broadened the range of financing options to include, in addition to lease purchase financing, other forms of tax-"empt borrowings. Tlis broad approach is in keeping with the City's debt management poficies to strive to minimize debt interest costs, to preserve the City's credit rating, and to assess new and innovative approaches to issuing debt. The City's Bond Counsel and Financial Advisors have participated in the review process. POLICY REPORT 25th Street Parking Lot Financing October 4, 1994 Page 2 CON IDERATIONS LeLyal Constraints an ons In evaluating alternative financing mechanisms for this borrowing there are two major parameters the City must consider as it does for any debt issuance: (1) Legal authority based on limits imposed by the State Constitution and the City Charter and (2) the City's economic abitity to support such debt. City Council, through the CIP, has provided direction that the project be financed with non-charter debt. To this end Bond Counsel has proposed a structure based on a contractual obfigation that would avoid the hmitations set forth in Section 6.05:1 of the City's Charter. T'he Constitutional limitations can easily be avoided since the City has considerable debt capacity (over $1 billion) under its Constitutional Iiinits. Furthermore while the debt will not be seff-supporting, this issuance, based on its size, wiff not infringe on the City's economic ability to support the debt nor have an influence on the City's debt ratios based on a total city indebtedness of over $616 mihion at June 30, 1994. Structure The purpose of this borrowing certainly qualifies for tax-exempt financing. T'he project is for a public purpose and not private use. Ilerefore, tax- "empt securities could be used. However, the project is not self-supporting; so, revenue bonds are not a consideration. The City is neither pledging its full faith and credit nor its taxing power in repayment of the loan, so the borrowing does not constitute general obegation debt. Tberefore, the most appropriate structure for the City to pursue is the use of moral obegation and annual appropriation securities. These types of securities include Certificates of Participation (COPs), Lease/Purchase financing, and other annual appropriation-backed securities. Size of Financin nd Issuance Costs and Participants In relation to the City's overafl debt program, this financing at $l,j75,000 is quite small. The economies of scale enjoyed in a conventional bond issue would not be realized with this financing. Underwriting commissions and other bond issuance costs would be disproportionate, even prohibitive, to attempt a conventional sale. In fact, several underwtiting firms indicated no interest in participating in this transaction. However, many of the local banks did indicate an interest in assisting the City with this financing as demonstrated by their responses to a Request for Proposal (RFP) process. POLICY REPORT 25th Street Parking Lot Financing October 4, 1994 Page 3 ALTERNATtVES In a letter previously provided to City Council, Bond Counsel outlined three options for financing the 25th Street Parking Lot. These options are based on the considerations previously discussed in this report. None of the three alternatives include conventional general obegation bonds since that alternative had been reserved by City Council for other purposes. An underwritten sale of debt was also not considered since the issuance costs associated with an underwriting would have been excessive given the small size of this financing. Consequently three "bank borrowing" structures were considered: 9-. Under this option, the City would enter into a third-party lease purchase financing with a bank. Ile City would lease the parking lot to a third party, then lease it back. The City would make annual lease payments to the bank, subject to annual appropriation by the City Council. Annual payments would reflect the amortization of the principal and interest costs of the boffowing. In the event of non- appropriation, the City would forfeit use of the parking lot, typically for a period sufficient for the bank to recoup its invesbnent. dvanta es. Avoids the City's Charter limitations and voter approval. Typical financing structure frequently used in Virginia. Potentially the lowest interest costs. (6.7%) tsadvanta es. Tbe most complicated structure of the three proposed alternatives requiring a 3rd party Lessor to implement the transaction. Similar to an underwriting with associated issuance costs, the volume and cost of documentation is the highest of the three financing options. Extremely high issuance costs for the size of the financing. I City would have to address the State Constitutional prohibition of leasing public property for longer than five years without a public bid. (Would need to advertise the bid for four weeks). May require a debt service reserve fund. POLICY REPORT 25th Street Parking Ut Financing October 4, 1994 Page 4 Option 2 - Ap@riation-based Contract Secured by a Deed of Trust. Under this option, the City would finance the parktg lot Sitebyenteling into A contractual obfigation with a bank and security. Tbe City Council wo ]d make a proadtg a deed of ftugi On Ae silie as u nnual appropriations to repay the contract payments, and in the event that funds were "Ot appropriated, .the bank could foreclose on the deed of trust. nta es. Avoids the City Charter @itations and voter approval. A less coniplicated le2al structure than lease Purchase financi g ( 0 third party lessor). n n Lower costs associated with docunient Preparation than Option 1. No requirement for Public bidding Of I l,ase, since this alternative does not include a lease. Potentially loer interest costs than Option 3 due to Ihe secrity of a deed Of trust. A legally niore compl" tructur s e than Option 3, therefore higher costs associated with document Preparation than option t that the financing fail to appropriate to t k is effectiely POssessiOn of the on o i ai payments on 90( faith of the City ob] e (i.e, the City's mo,@l nta es. OP lorfuni' for 4 low tisi Avoids the City's Charter limitations and voter approval. Is the least comphcated legal structure of the three options. POLICY REPORT 25th Street Parking Lot Financing October 4, 1994 Page 3 ALTERNATIVES In a letter previously provided to City CounciL Bond Counsel outlined three options for financing the 25th Street Parking Lot. These options are based on the considerations previously discussed in this report. None of the three alternatives include conventional general obligation bonds since that alternative had been reserved by City Council for other purposes. An underwritten sale of debt was also not considered since the issuance costs associated with an underwtiting would have been excessive given the smafl size of this financing. Consequently three "bank borrowing" structures were considered: O@n I - Lease Purchase FinanciM. Under this option, the City would enter into a third-party lease purchase financing with a bank. Tlie City would lease the parking lot to a third party, then lease it back. T'he City would make annual lease payments to the bank, subject to annual appropriation by the City Council. Annual payments would Teflect the amortization of the principal and interest costs of the borrowing. In the event of non- appropriation, the City wouid forfeit use of the parking lot, typicaliy for a period sufficient for the bank to recoup its investment. Advantaees: Avoids the City's Charter hmitations and voter approval. Typical financing structure frequently used in Virginia. Potentiafly the lowest interest costs. (6.7%) Disadyantages: The most compficated structure of the three proposed alternatives requiring a 3rd party Lessor to implement the transaction. Similar to an underwriting with associated issuance costs, the volume and cost of documentation is the highest of the three financing options. Extremely high issuance costs for the size of the financing. I City would have to address the State Constitutional prohibition of leasing public property for longer than five years without a public bid. (Would need to advertise the bid for four weeks). May require a debt service reserve fund. POLICY REPORT 25th Street Parking LDt Financing October 4, 1994 Page 4 Option 2 - Appropriation-based Contract Secured by a ed o Trust. Under this option, the City would finance the parking lot site by entering into a contractual obligation with a bank and providing a deed of trust on the site as security. Ile City Council would make annual appropriations to repay the contract payments, and in the event that funds were not appropriated, the bank could foreclose on the deed of trust. Advantaces: Avoids the City Charter Iiinitations and voter approval. A less complicated legal structure than lease purchase financing (no third party lessor). Lower costs associated with document preparation than Option 1. No requirement for public bidding of a lease, since this alternative does not include a lease. Potentiafly lower interest costs than Option 3 due to the security of a deed of trust. Disadvantaees: A legally more complex structure than Option 3, therefore higher costs associated with document preparation than Option 3. O@n 3 - ApproDiiation-based Contract without Security Tlis alternative is identical to option 2 in every respect except that the financing would not be secured by a deed of trust. If the City were to fail to appropriate contract payments, the bank would not be able to foreclose or take possession of the site. Under this option, the bank is effectively reiiant on the good faith of the City to honor its obfigation to make payments on the borrowing (i.e., the City's moral obhgation pledge). Advantazes.' Unique opportunity for a structure new to Virginia Beach, yet low risk on small principal. Avoids the City's Charter limitations and voter approval. Is the least complicated legal structure of the three options. POLICY REPORT 25th Street Parking Lot Flnancing October 5, 1994 Page 5 It carries the lowest costs associated with document preparations (i.e., no security documents). As in Option 2 above, in the absence of a lease, the Constitutional requirement limiting the borrowing term is non-applicable. lsadvanta es. PotentiaUy higher interest costs than Options I and 2 due to the absence of a leaseholder interest in the property or deed of trust A. Legal Structure Most complex with 3rd Requires security Least coinplex party lessor. doctimentl stmcture with no @ty documents. B. Interest Costs Potentially lowest Potenti&4 lower Lower interest in the interest costs. (6.7%) interest costs than short run; can be Option 3. converted to fixed rate. C. Other Financing Most expensive because Lower costs than lie lowest costs costs of structure and Option 1. associated with documentation. (Estimated oc)sts of docttment preparation. (Estimated costs of $30,000-$35,000) Bank fees capped at $40,000-$50,000) $2,500. @ted costs of $20,000- $25,000) D. Constraints or Constitutional Deed of TrusL More fl@bility. Considerations requirements (5-year boffowing). Debt Service Reserve Fund. RECOMMENDATIONS Based on the alternatives provided in the previous section, the Department of Finance prepared a Request for Proposal (RFP) for a tax-exempt boffowing by the City in the amount of $1,375,000 to finance the site acquisition cost for the 25th Street Parldng Lot. The proposal was sent to five banks that had expressed interest in serving the City on this transaction. The proposal abowed the banks to respond to the request for securing the financing by using either Options 2 or 3 in the previous section of this report. After discussions with the banks Option I was not included in the proposals because it was considered to be an expensive option for the size of the financing and was much too cumbersome in structure and documentation. POLICY REPORT 25th Street Parking L4Dt Financing October 4, 1994 Page 6 An Evaluation Committee consisting of Boud CounseL Financial Advisors, and staff from the Finance Department reviewed the proposals. 'ne criteria upon which the proposals were evaluated included interest rates, security, prepayment penalties, required documentation and covenants, and estimated expenses. Wbile afl of the proposals were exceBen@ the committee felt that the proposal from NationsBank to provide the financing for this project under Option 3 was the most fleiable and cost effective approach. NationsBank was the only offeror to propose an unsecured loan with no interest rate penalty for the absence of a Deed of Trust. Tle proposal offered attractive variable rate pricing options with a conversion to fixed rate if @e City desired. NationsBank placed a cap on its closing costs and expenses to ensure low costs for document preparation. Tbe Evaluation Committee felt that the NationsBank proposal simplffied in many ways the loan process and provided the least expensive financing transaction for this project. (A Summary of Terms and Conditions as proposed by NationsBank is enclosed as Appendix A and a Comparison of Interest Costs is included as Appendix B.) T'berefore, it is recommended that the City Manager be authorized to execute a commitment letter with NationsBank under the terms and conditions as submitted by NationsBank in tbeir proposal of September 8, 1994. Furthermore, it is recommended that City Council approve the accompanying resolution authorizing the "ecution of a contract with NationsBank providing for the City to repay the loan subject to annual appropriation. Submitted by: Approved by: Director of Finance Date SUMMARY OF CERTAIN TERMS AND CONDITIONS as Proposed by NationsBank Borrower City of Virginia Beach Issue Type & Amount: $1,375,000 tax-exempt borrowing Purpose: Acquisition cost of a parking lot on the Southwest oorner of 25th Street and Pacific Avenue. Payment Schedule: Interest wiH be payable -mi-annually on April I and October 1 of each year. Principal will be Payable on April I according to the fonowing schedule: 1995 - s 90,000 2000 - $140,000 1996 - 115,000 2001 - 150,000 199'7 - 120,000 2002 - 155,000 1998 - 130,000 2003 - 165,000 1999 - 135,000 2004 - 175,000 Interest Rate: A floating rate (variable) equal to the fohowing schedule: libor' B-ch ate 30 day Libor minus 49 bp. 4.875% 4.38% 60 day IJ7"r minus 51 bp. 4.9375 4.42% 90 day Libor rainus 54 bp. 5.00 4.46 180 day Libor minus 64 bp. 53125 4.67 1 year Libor lwnus 82 bp. 5.8125 4.99 * As of September 8, 1994 T'he City may convert from one contract time period to another with written notice te, business days prior to the expiring contract. Security: The obligation to repay the loan wfll be contractual obligation of the City. payments wiU be subject to annual appropriation by the City CDuncil. Since neither the City's full faith and credit nor t@g power are pledged, this obfiption will not constitute general obffption debt of the City. In the event the CitY fails to appropriate payments on the loan, th, Bank will not be able to foreclose or take possession of the projecl Ile Bank is effectively reliant on the good faith of the City to honor its obliption to make payments on the debt This good faith will take the form of a moral obliption Erom the aty pursuant to documentation satisfactory to the Bank. Other Tllere will be no commitment fees or prepayment penalties. Tlie Bank wiH cap its dosing costs and expenses at $2,500. If not acrepted, this commitment shall expire on @ober 14, 1994. APPENDIX B COMPARISON OF FIXED RATE OPTIONS AND VARL4BLE RATE OPTIONS Total Variable Rate bterest Rate latemst Costs Savlnzc Fixed Rate Proposal (lowest proposal) 6.70% $506,017.50 -0- Variable Rate Proposals: 3 month IA*bor (adjusted) 4A6% 336,841.50 169,176.00 6 month Libor (adjusted) 4.67% 352,890.56 153,126.94 1 year I-lbor (adjusted) 4.99% 377,058.56 128,958.94 Savings are based on a constant variable rate. See Appendix B-1. APPENDIX B-1 TiM Tetd 4/1~$ 90,000.00 6.TO~ 46,0~J0 136,062.~) 10/!/9:S 4%047J0 43,047.S0 4~ 115,000.00 6.TO~ 43,047J0 10/1/~ 39,19~.00 4/1/97 120,000.00 6.TO~ 39,195.00 15~,195.00 10/1/~ 3S,17S.~0 4/l~M IM,O00.O0 6.TO~ 3S,175.00 !~,175.00 1o/1/~ 30,S20.G0 4/1/09 I$$~00.00 6.TO~ 30,120.00 4,'1/00 140,000.00 6.'AB4 26~07.S0 1~1/oo 21,soT jo 21,6o~.so 4/1/01 1~0,000.00 6.TO~ 21,~I)7.S0 171,60T. M 4/1/03 l~._n~_ ..00 ~.'/0~ l~,.~3J0 IG/IA~ 11,3~0,~0 4/IAM -- 175t000.00 IJ81~17.~- Item II-H.2. PESOLUTIONIORDINANCES ITEM 38466 Upon motion by Council Lady ';Irayhorn, seconded by rice Mayor Sessoms, City Council ADOPTED: Ordinance re Harbour Point Road Extended (1,YNNIL411EN BOROUCII): 1. AMEND APPROPRL4TIONS by reducing $705,000 from sale of street closure. 2. TRANSFER $504,840 from Southeastern Expressway Acquisitioii Iroject #2-089 to Ilarbour Point Road Extended Project #2 -218 to reflect changes iri scope and funding. Voting: 9-0 Council Members Voting Aye: John A. Baum, Robert K Dean, William W. Ilarrison, Jr., Barbara M. Henley, Louis R. J()nes, Mayor Meyera E. Obcr?ldorf, Nancy K Parker, Vice Mayor William D. @essoms, Jr. and Louiva M Strayhorn Council Members Voting Na-v. None Council Members Absent: Linwood 0. Branch, III, and John D. Mosv October 11, 1994 I AN ORDINANCE TO AMEND APPROPRIATIONS TO HARBOUR 2 POINT ROAD EXTENDED PROJECT 02-218 At4D TO TRANSFER 3 S504,840 FROM SOUTHEASTERN EXPRESSWAY ACQUISMON PROJECT 4 #2-099 TO HARBOUR POINT ROAD EXTENDED PROJECT #2-218 IN ORDER 5 TO REFLECT CHANGES IN SCOPE AND FUNDING OF THE PROJECT 6 WHEREAS, a portion of the appropriations to the Harbour Point Road Extended Project 7 #2-218 were @ed to be provided from the sale of excess property resulting from a street closure 8 in the amount of $705,000; 9 WHEREAS, delays in the process for the sale of excess property has resulted in the need I 0 to amend appropriations , and reduce the project by $705,000, to a total of $1, 1 18,160; 1 1 WHEREAS, changes in the scope of Harbour Point Road Extended Project #2-218 result 1 2 in a revised project cost estimate of $1,623,000, requiring an additional $504,840; 1 3 WHEREAS, $504,840 is available for transfer from Southeastem Expressway Acquisition 14 Project #2-089. 15 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCEL OF THE CITY OF 16 VIRGINIA BEACH, VERGINIA, that appropriations to Harbour Point Road Project #2-218 be 17 amended by reducing the amount of $705,000 from sale of street closure; 18 BE IT FURTEIER ORDAINED that flmds in the amount of $504,840 be transferred from 1 9 Southeastem Expressway Acquisition Project #2-089 to Harbour Point Road Extended Project #2- 20 218 in order to reflect changes in scope and funding of the project. 2 1 This ordinance shall be in effect from the date of its adoption. 22 Adopted the 1 1 day of October , 1994, by the Council of the City of Virginia Beach, 23 Virginia. APPROVED AS TO CONTENT Department of Management and Budget F:ISWJ@ d AS TO LE@ SUFFICIEN-,Y - 12 - I- 3. RESOLUTIONIORDINANCES ITEM # 38467 Upon motion by rice Mayor @5essomv, seconded by Council Lady .5trayhorn, City Council ADOPTED.- Ordinance re indoor air iniprovements and restoradon of Capital Improvement Project resources for Virginia Beach Schools: 1. ACCEPT and APPROPRLI TE $3, 000, 000 additional Federal Impact Aid funds to Renovations and Replacements. 2. APPROPRL4TE $1,700,000 to the @ch(X)l Division P-Y 1994- 1995 Operatirig Budget for abatei?tent of itidoor air problems. 3. APPROPRIATE $234,()93 in P-Y 1993-1994.@chool I?eversion Funds for abatentetit of itidoor air problel?IN. 4. TRANSFER $40(), 000 from Ocean Lakes High School CIP to Renovatiotis and Replacements (@IP. Voting: 9-0 Council Members Voting Aye: John A. Bawn, Robert K Dean, William W. Harrison, Jr., Barbara M Henley, Louis R. Jones, Mayor Meyera E. Oberndorf Nancy K Parker, Vice Mayor William I). Sessoms, Jr. and Louiva M. 5trayhorn Council Members Voting Nay: None Council Members Absent: Linwood 0. Brailch, III, aiid Johri D. Mogv October 11, 1994 I AN ORDINANCE TO APPROPRIATE $ 3,000,000 IN ADDITIONAL 2 FEDERAL IMPACT AID AND $234,093 IN FY 1993-94 SCHOOL REVERSION FUNDS 3 TO SCHOOLS FOR INDOOR AIR IMPROVEMENTS AND RF-STORATTON OF 4 CAPITAL PROGRAMS RESOURCES, AND TO 5 TRANSFER $400,000 WITMN THE SCHOOLS CAPITAL PROGRAM 6 W-HEREAS, the School Division has detennined that proposals currently before Congress to 7 amend the method of calculating federal aid to local schools will result in an estimated 8 $3,000,000 in additional funds for the Virginia Beach Public Schools for FY 1994-95; 9 WHEREAS, reversion funds available for use by the Schools from the FY 1993-94 to Operating Budget are $234,093; 1 1 W-HERF-AS, excellent prices for technology procurement resulted in a $400,000 12 unencumbered balance in the Ocean Lakes High School Capital Project; 1 3 WHEREAS, the School Division had requested transfer of ftinds in the amount of 1 4$1,700,000 from the "Renovations and Replacements" capital project in order to complete 15 acquisition of fumishings and equipment necessary to open Larkspur Middle School and Ocean 1 6Lakes High School, and had committed to restoiing the transferred funds when additional 1 7resources became avaflable; and 1 8 NM S, the School Division has identified schools which have indoor air problems and 1 9has developed a plan to resolve these problems expeditiously, 20 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 2 1OF VIRGINIA BEACH, VIRGINIA that funds in the arnount of $1,300,000 be appropfiated to 22 capital project 1-058 "Renovations and Replacements", and that ftinds in the amount of 23 $1,700,000 be appropriated to the FY 1994-95 School Division Operating Budget for abatement 24 of various schools' indoor air problems, and that estimated revenues from the federal 25 govemment for Schools be increased by $3,000,000. I BE IT FURTHER ORDAINED that funds in the amount of $234,093 be appropriated from 2 FY 1993-94 General Fund year end balance funds to the FY 1994-95 School Operating 3 Budget for abatement of Indoor Air Quality problems, and that $400,000 be transfeffed from 4 capital project 1-010 "Ocean Lakes High School" to capital project 1-058 "Renovations and -5 Replacements", 6 This ordinance shall be effective on the date of its adoption. 7 Adopted by the Council of the City of Virginia Beach, Virginia on the I 1day of 8 October 11994. 9 Approved as to Content 10 11 Walter C. Kraemer,@. 12 Management and Budget - 13 - Item II-H.4.15. RESOLUTIONIORDINANCES ITEM # 38468 Upon motion by Councilman Dt!an, veconded by rice Mayor ,;Cssoms, City Council ADOPTED: Ordinance to APPROPRL4TE $90,000 from Storm Water Utility Retained Earnings to Pine Ridge Drainage Project #2-179 refunding increased costs for construction (PRINCE,5,@ ANNI,, BOROUCH). AND, Ordinance to APPROPRL4TE $90,000 from Storm Water Utility Retained Earnings to Laurel Manor Drainage (Interim) 1roject #2 -190 re funding increased co@vts for construction (1,YNNIL4 VFN BOROUGH). Voting: 9-0 Council Members Voting Aye: John A. Baum, Robert K Dean, William W. liarrison, Jr., Barbara M. Henley, Louis R. Jones, Mayor Meyera P,. Oberndorf Nancy K Parker, Vzce Mayor Williatn D. ';essoms, Jr. and Louisa M. ';trayhorn Council Members Voting Nay. None Council Members Absent: Linwood 0. Branch, iii, and John D. M(@,vv October 11, 1994 I AN ORDINANCE TO APPROPRIATE $90,000 FROM STORM 2 WATER UTILITY RETAINED EARNINGS TO PINE RIDGE 3 DRAINAGE PROJECT #2-179 IN ORDER TO FUND 4 THE INCREASED COSTS FOR CONSTRUCTION 5 WHEP-EAS, the Pine Ridge Drainage Projert #2-179 i. for the construction of improvements 6 to the existing storrn water drainage system to relieve ftequent flooding on Windy Pines Bend in the 7 Pine Ridge subdivision, 8 WHEREAS, the original bid for construction exceeded the estimated construction cost, 9 resulting in a modification to the project and subsequent re-bid, I 0 WHEREAS, the re-bid for construction also exceeded the estimated construction cost, I I WHEREAS, the original total cost estimate for the project was $640,000, and the revised 1 2 total cost estimate for the project is $730,000, resulting in an estimated need for an additional 1 3$90,000 in order to complete the project, 1 4 WHEREAS, $90,000 is available for appropriation from Storm Water Utility Retained 1 5Eamings. 1 6 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 1 7VIIRGMM BEACILI, VIRGINIA, that funds in the amount of $90,000 be appropriated from Storm 1 8Water Utihty Retained Eam'mgs to Pine Ridge Drainage Project 42-179 in order to fund the increased 1 9costs for construction. 20 This ordinance shall be in effect from the date of its adoption. 2 1 Adopted the I I day of -October , 1994, by the Council of the City of Virginia Beach, 22 Virginia. APPROVED AS TO CONTENT Walter C. Kraem @r Department of Management and Budget F:/SWJ/pi.@,idg..@d A43 70 I AN ORDINANCE TO APPROPRIATE $90,000 FROM STORM 2 WATER UTILITY RETAINED EARNINGS TO LAUREL MANOR 3 DRAINAGE (INTER]IM) PROJECT #2-190 IN ORDER TO 4 FUND THE INCREASED COSTS FOR CONSTRUCTION 5 WHEREAS, the Laurel Manor Drainage (Interim ) Project #2-190 is for the construction of 6 a storm water drainage system in the Laurel Manor subdivision, 7 WHEREAS, the project is being accelerated and constructed in conjunction with the Laurel 8 Manor/Dogwood Acres Sanitary Sewer Improvements Project #6-944 at the request of the Laurel 9 Manor Civic League, 10 WHEREAS, the original cost estimate of the project was $230,000, and the current revised I I cost estimate is $320,000, resulting in an estimated need for an additional $90,000; 1 2 1 3 WHEREAS, $90,000 is available for appropriation from Storm Water Utility Retained 1 4 Earnings. 1 5 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF TIHE CITY OF 16 VIRGINIA BEACH, VIRGINIA, that funds in the amount of $90,000 be appropriated from Storm 1 7Water Ufibty Retained Eamings to Laurel Manor Drainage (Interim) Project #2-190 in order to fund 1 8the increased costs for construction. 1 9 This ordinance shall be in effect from the date of its adoption. 20 Adopted the I I day of October , 1994, by the Council of the City of Virginia Beach, 21 Virginia. APPROVED AS TO CONTENT Walter C. Kra e@r, Jr Department of Management and Budget F:/SWJ/la.r.l..,d 14 - te coNSENT AGENDA ITEM # 38469 Upon motion by Vice Mayor Sessoms, seconded by Councilman Jones, City Council APPROVED in ONE MoTIoN, items 1, 2, 3, 4 and 5 of the CONSENT AGENDA Voting: 8-0 Council Members Voting Aye. Robert K Dean, William W. Harrison, Jr., Barbara M. Henley, Louis R. Jones, Mayor Meyera E. Oberndorf Nanc v K Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M, @trayhorn Council Members Voting Ntq: None Council Members Absent: John A. Baum, Linw()od 0. Branch, III, a@id Johpt D. Voss October 11, 1994 CONSENT AGENDA ITEM 38470 Upon motion by Vice Mayor 5essoms, seconded by Councilinan Jones, City Council ADOPTED: Resolution to refer to the Planning Commission an amendnent to Sectio, 1409 of the Wetlands Zoning Ordinance of th(, City of Virginia Beach, Virginia, re permity. Voting: 8-0 Council Members Voting Aye: Robert K Dean, William W. Harrison, Jr., Barbara M. Henley, Louis R. Jones, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D. S:essoms, Jr. and Louisa M. Strayhor,t Council Members Voting Nay: None Council Members Absent: John A. Baum, Liriw()od 0. Branch, III, atid John D. Moss October 11, 1994 1 A RESOLUTION REFERRING TO THE 2 PLANNING COMMISSION AN AMENDMENT TO 3 SECTION 1409 OF THE WETLANDS ZONING 4 ORDINANCE OF THE CITY OF VIRGINIA 5 BEACH, VIRGINIA, PERTAINING TO 6 PERMITS 7 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 8 VIRGINIA BEACH, VIRGINIA: 9 That the attached proposed amendment to Section 1409 of the 10 wetlands Zoning Ordinance of the City of Virginia Beach, Virginia, 11 is hereby referred to the Planning Commission for its consideration 12 and recommendation. 13 The Planning Commission is hereby requested to make its 14 recommendation to the City Council within sixty (60) days of the 15 date of this resolution. 16 Adopted by the Council of the City of Virginia Beach, 17 Virginia, on this 11 _ day of Octo@ 1994. is CA-5736 19 ORDIN\NONCODE\WETLANDS.RES 20 R-1 APPITOVED AS TO CONTENTS 21 PREPARED: 09/28/94 51 A@TU@, MENT APPROVE[) AS TO LEGAL SUFFICIENCY AND FORM 1 AN ORDINANCE TO AMEND AND REORDAIN 2 SECTION 1409 OF THE WETLANDS ZONING 3 ORDINANCE OF THE CITY OF VIRGINIA 4 BEACH, VIRGINIA, PERTAINING TO 5 PERMITS 6 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 7 BEACH, VIRGINIA: 8 That Section 1409 of the Wetlands Zoning Ordinance of the City 9 of Virginia Beach, Virginia, is hereby amended and reordained to 10 read as follows: 11 See. 1409. Permits to be in writing, signed, and notarized. 12 13 The permit shall be in writing, signed by the chairperson of 14 the Board or an authorized representative and notarized. The Board 15 shall transmit a copy of the permit to the commissioner. 16 17 Adopted by the Council of the City of virginia Beach, virginia 18 on the day of 1994. 19 CA-5713 20 R2 21 SEPTEMBER 12, 1994 22 ORDIN\DATA\NONCODE\1409.ORD Arrr,uvtU @ )U CONTENTS SIGNATURE l-u -q4 DEPATMENT APPROVED AS TO LEGAL: SUFFICIENCY AN@RM CITY ATTOI IY 16 - tem CONSENT AGENDA ITEM # 38471 Upon motion by Vice Mayor sessoms, seconded by Councilman Jones, City Council ADOPTED: Ordinance to AMEND and REORDAIN Secti()ns 16-12 and 16-12.1 of the Code of the (-'ity of Virgi,,ia Ileach. Vi@ginia, re Certificat- of Compliance. Voting: 8-0 Council Members Voting Aye. Robert K Dean, william W Harrison, Jr., Barbara M@ Henley, IOuis R. Jones, Mayor Meyera E. Obernd,,rf, Na,,,y K Parker, Vice Mayor William D. Sessoms, Jr. and Louisa M. ';trayhorn Council Membe- Voti,,g Nav: None Council Members Absent: John A. Baum, Linwood 0. Branch, III, atid John D. Movs October 11, 1994 1 AN ORDINANCE TO AMEND AND REORDAIN 2 SECTIONS 16-12, AND 16-12.1 OF THE 3 CODE OF THE CITY OF VIRGINIA BEACH, 4 VIRGINIA, PERTAINING TO CERTIFICATES 5 OF COMPLIANCE 6 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VIRGINIA 7 BEACH, VIRGINIA: 8 That Sections 16-12 and 16-12. 1 of the Code of the City of 9 virginia Beach, Virginia, is hereby amended and reordained to read 10 as follows: 11 Sec. 16-12. Certificates of essupaney compliance; inspections 12 of certain dwellings and dwelling units. 13 14 (a)(1) No owner of any dwelling or dwelling unit located in an 15 area designated by the city manager as a "special emphasis area,, 16 pursuant to subsection (b) hereof shall permit any person to occupy 17 such property as a tenant or otherwise for valuable consideration, 18 except pursuant to the sale or exchange thereof, unless a 19 certificate of oeeupaney autherising t-he eeeupaney ef the 20 compliance with current building requlations for existing 21 residential buildings on such property has been issued by the 22 director of housing and neighborhood preservation. once issued, a 23 certificate of eeeapaney compliance shall not thereafter be 24 required for a period of one (1) year or until the property is to 25 be occupied exclusively by persons other than those in occupancy on 26 the date such certificate was issued, whichever period is the 27 greater. In the case of dwellings and dwelling units for which a 28 certificate of eeeupaney compliance has been issued by the zoning 29 administrator pursuant to section 103 of the city zoning ordinance, 30 the provisions of section 16-12.1(c) shall apply. 31 (2) No certificate of asetipaney comrliance shall be required 32 for any property occupied as of the date the area in which it is 33 located is designated as a special emphasis area until such 34 property becomes occupied exclusively by persons other than those 35 in occupancy on such date. 36 (3) No electric power company shall commence electrical 37 service to a property subject to this section or continue service 38 to any such property upon a change of occupancy thereof unless a 39 valid certificate of or temporary certificate 40 Of lance has been issued for such property. The 41 director shall promptly notify the electrical power company of the 42 issuance of a certificate of or temporary 43 certificate Of has been issued for such 44 property. The director shall promptly notify the electrical power 45 company of the issuance of a certificate of or 46 temporary certificate Of 47 (b) The city manager shall designate as "special emphasis 48 areas" those areas within the city to which the provisions of this 49 section shall apply. Such areas shall be designated upon the basis 50 of the following criteria: 51 (1) Number and percentage of dwellings and dwelling units 52 occupied exclusively by persons other than the owner thereof; 53 (2) Physical condition of dwellings and dwelling units, as 54 determined by exterior housing condition surveys and code 55 enforcement statistics; and 56 (3) Eligibility for federal and state housing assistance 57 programs. 58 In designating special emphasis areas, the city manager shall 59 give due regard to each of the criteria set forth hereinabo,e as 60 indicators of areas most likely to be benefitted from the 61 provisions of this section. He shall set forth, in writing, his 62 findings and reasons for designating a special emphasis area. 63 (c) The designation of an area as a special emphasis area by the 64 city manager shall be reviewed by him on an annual basis. When it 65 appears that the application of the aforesaid criteria no longer 66 warrants the designation of a certain area of the city as a special 67 eraphasis area, he shall rescind his desiqnation of such area as a 68 special emphasis area. 69 (d) It shall be the responsibility of the owner of property 70 subject to the requirements of this section to notify the director 2 71 72 73 74 75 76 77 78 79 8O 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 .00 O2 O3 O4 05 of any pending change of occupancy of such property and to request an inspection thereof. Such inspection shall be performed within two (2) working days of the receipt of the request for inspection. There shall be no fee for an initial inspection, but a fee of twenty-five dollars ($25.00) shall be charged in the event repairs or corrections are required and have not been completed by the time of reinspection of the property. The owner of such property shall also be responsible for requesting a reinspection if required. No certificate of e~ ~ shall be issued unless all required fees have been paid. (e) The director shall issue a certificate of ~ if the property complies with all applicable laws, ordinances, regulations and standards set forth in, or adopted or incorporated by, the Code of the City of Virginia Beach ~ to the condition of housin9' In the event the property is not in compliance with any one or more of such laws, ordinances, regulations and standards, no certificate of shall be issued. A certificate of ~ ~ may be issued immediately upon the conclusion of the initial inspection of the property, so long as all requirements for the issuance thereof have been met. (f) (1) Notwithstanding the provisions of subsection (e), the director shall, in the circumstances set forth in subdivision (2) hereof, issue a temporary certificate of e~ ~. A temporary certificate of e~ ~ shall authorize the occupancy of the property for such period of time as is reasonably necessary to remedy or correct all defects or violations by reason of which the certificate of eee~k~%~f_ ~ was refused, but not in excess of sixty (60) days. Every such certificate shall set forth the period of time for which temporary occupancy is authorized. It shall be a condition of the issuance of every temporary certificate of ~ ~ that the property shall be brought into complete compliance with applicable laws, ordinances, regulations and standards within the period of time specified therein, and the willful failure to bring the property 3 106 into Buch COMPliance shall be a violatio,, Of this section. 'rhe 107 director may eltend a temporary certificate of 108 for an additional Period Of not more than ixty (60) days if the 109 owner has diligently and in good faith attempted to bring the 110 property "'tO cOmPliance. (2) A tenporary certificate of 112 be i-ued in the event: i ce shall 113 (i) Property for which a certificate of 114 ia ce was refused may reasonably be brought into compliance 115 Within sixty (60) days from the date of issuance of the temporary 116 certificate of ; and 117 (ii) All necessary repairs or corrections may be 118 performed safely and without undue inconvenience to the Occupants 119 of the property; and 120 (iii) The condition of the property does not 121 constitute a hazard to the health or safety of the occupants 122 thereof. 123 (3) A temporary certificate of may be 124 issued immediately upon the conclusion of the initial in,pection of 25 the property, so long as all requirements for the issuance thereof 26 have been met. 27 (g) Any person aggrieved of any determination or decision of 28 the director made Pursuant to this section shall have the right to 29 appeal such deterinination or decision within twenty-one (21) days 30 to the board of building code appeals. Notice of such appeal shall Ibe in writing, shall specify the grounds of appeal, and shall be 2mailed or delivered to the director. All Proceedings before the 3board shall be in accordance with the provisions of the Virginia 4Uniform Statewide Building Code. 5(h) Nothing in this section shall be construed to limit, 6impair, alter or extend the rights and remedies of persons in the 7relationship of landlord and tenant as such rights and remedies exist under applicable law. (i) Retrofitting of property subject to the provisions of this section shall be required only if necessary to remedy a serious and 4 141 dangerous hazard to life or health. In all other cases, dwellings 142 and dwelling units shall be subject to the requirements of la. in 143 effect at the time of their construction. 144 (i) Nothing in this section shall be construed to relieve or 145 exempt any person from otherwise complying with all applicable 146 laws, ordinances, standards and regulations pertaining to the 147 condition of buildings and other structures. 148 (k) As used in this section: 149 (1) The term "property" shall be limited to dwellings and 150 dwelling units, and grounds thereof, within special emphasis areas 151 so designated by the city manager pursuant to subsection (b) 152 hereof. 153 (2) The term ,owner" shall mean, the owner or owners of the 154 freehold of the premises or lesser estate therein, a mortgage or 155 vendee in possession, assignee of rents, receiver, executor, 156 trustee or lessee in control of a building. 157 (3) The term "director's shall mean the director of housing 158 and neighborhood preservation and such employees of the department 159 of housing and neighborhood preservation as the director may 160 designate to administer and enforce this section. 161 (4) The term "person-' shall mean any individual, group of 162 individuals, corporation, partnership, business trust, association 163 or other legal entity, or any combination thereof. 164 (1) The provisions of this section are intended to be 165 severable, and if any such provision be deemed or adjudged to be 166 invalid or unenforceable, the remaining portions of this section 167 shall remain in full force and effect and their validity 168 unimpaired. 169 (m) A violation of this section shall be punishable as 70 provided in sectioin 16-11 of this chapter. 71 Boo. 16-12.1. Certificates of exemption. 72 (a) The director of housing and neighborhood preservat:ion 73 shall issue a certificate of exemption in the circumstances set 74 forth in subsections (b) and (c). The effect of the issuance of a 75 certificate of exemption Bhall be to exempt any dwelling unit for 5 176 which such certificate of exemption has been issued frotft the 177 requirements of section 16-12 of this Code. It shall not exempt any 178 such dwelling unit from compliance with applicable ordinances, 179 regulations and standards pertaining to the condition of housing. 180 (b) A certificate of exeraption shall be issued if, and only 181 if, all of the following criteria have been met: 182 (1) The dwelling units to which the certificate of exemption 183 applies are contained in a unified multiple-family dwelling 184 development having no less than twenty (20) units, in which 185 development a property manager or property management entity 186 performs, or causes to be performed, regular maintenance of the 187 property; 188 (2) Written application for a certificate of exemption has 189 been made to the director of housing and neighborhood preservation 190 by the management or owner of such development; 191 (3) The management or owner has allowed the inspection by 192 city housing inspectors of not less than fifty (50) percent of the 193 vacant dwelling units, with a minimum of one (1) and a maximum of 194 ten (lo) units, contained in such development; if no units are 195 vacant, such inspection shall be performed upon a unit chosen by 196 the inspector, but shall be subject to the consent of the occupant 197 thereof; and 198 (4) No material and substantial violations of any applicable 199 ordinance, regulation or standard pertaining to the condition of 200 housing exist within any of the units so inspected or the interioof 201 the development. 202 (c) Notwithstanding the provisions of subsection (b) hereof, 203 a certificate of exemption shall be issued for any dwelling or 204 dwelling unit located in a special emphasis area at such time as a 205 certificate of c for such dwelling or dwelling 206 unit is issued by the zoning administrator pursuant to section 103 207 of the city zoning ordinance. 208 (d) A certificate of exemption shall be valid for a period of 209 two (2) years from the date of issuance; provided, however, that if 210 any one or more material and substantial violations of applicable 6 211 ordinances, regulations or standards pertaining to the condition of 2 12 housing is found within that period, within a dwelling unit or 2 13 otherwise, the director of housing and neighborhood preservation 214 may revoke the certificate of exemption. A certificate of exetftption 215 shall not be renewable except upon new application and compliance 216 with the requirements of subsection (b) hereof. 217 (e) Nothing in this section shall be construed to limit the 218 authority of the city to perform housing inspections in accordance 219 with applicable law. 22 0 (f) The refusal to grant, or the revocation of, a certificate 221 of exemption shall be appealable to the board of building code 222 appeals in the manner specified in section 16-12 of this Code. 223 Adopted by the Council of the city of Virginia Beach, Virginia 224 on the llth day of October 1994. 225 CA-5712 226 R4 V@D 227 SEPTEMBER 28, 1994 -12.ORD 228 ORDIN\DATA\PROPOSED\16 APPROVED AS T',) LEGAL @FIC.IENCY A@FORM 7 17 - te CONSENT AGENDA ITEM # 38472 Upon motion by Vice Mayor Sevvoms, seconded by Councilman Jones, City Council ADOPTED: Ordinance to authorize the City Manager to apply for the Virginia Housing Partnership Fund Urban Rehabilitation Loan Program. Voting: 8-0 Council Members Voting Aye: Robert K Dean, Wzlliam W. Harrison, Jr., Barbara M. Henley, Louis P, Jones, Mayor Meyera E. Oberndorf, Nancy K. Parker, Vice Mayor William D. Sesvoms, Jr. and Louisa M. @trayh(,r@i Council Members Voting Nay: Non e Council Members Absent: John A. Baum, I.inw()()d 0. Branch, III, and John 1). MosY October 11, 1994 1 ORDINANCE TO AUTHORIZE THE CITY MANAGER 2 TO APPLY FOR THE VIRGINIA HOUSING PARTNERSHIP FUND URBAN 3 REHABILITATION LOAN PROGRAM 4 WHEREAS the State has established the urban rehabilitation loan 5 program; and 6 WHEREAS the City has determined that the use of such funds would be 7 beneficial to neighborhood revitalization efforts; and 8 WHEREAS HOME Program funds are available to provide required 9 matching funds for this program. 10 NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF I 1 VIRGINIA BEACH that the City Manager is authorized to apply for the urban 12 rehabilitation loan program. 13 Adopted by Council of the City of Virginia Beach on the Eleventh 14 @ay of October 1994. 15 Approved as to Content: Approved as to Legal Form 16 17 Ain4r'e--w M- Frie@main, Direct r @ity At7torney 18 Department of Housing & Neighborhood Preservation - 18 - tem I-I 4 CONSENT AGENDA ITEM # 384" Upon motion by vice May- @essoms, seconded by Councilman Jo,,es, City Council ADOPTED: ordinance to TR4NSFER $148,000 from Shore Drive Inter'Sections project #2-133 t() Community Development Site Acquisition Project #2-217 re funding increased costs f()r right-lof-way acquisition and related legal and appraisal servicey. Voting: 8-0 council Members Voting Aye: Robert K. I)ea@i, William W. Ha-ison, Jr., Barbara M. lienley, Louis R. iones, Mayor Meyera E. Oberndorf, Nan,,,y K Parker, Vice Mayor William D. @essoms, Jr. and Louisa M. Stravhorti Council Members Voting Nay: Non e Council Members Absent. John A. Baum, Liilwood 0. Bratich, 111, and J()hn D. moss October 11, 1994 I AN ORDINANCE TO TRANSFER $148,000 FROM SHORE DRTVE 2 INTERSECTTONS PROJECT #2-133 TO COMMUNITY DEVELOPMENT 3 SITE ACQUISITION PROJECT #2-217 IN ORDER TO FUND THE 4 TNCREASED COSTS FOR RIGHT-OF-WAV ACQUISITION AND 5 RELATED LEGAL AND APPRAISAL SERVICES 6 WHEREAS, the City began a program to improve the infrastructure of streets and 7 drainage in certain target neighborhoods over fifteen ( 1 5) years ago; 8 WHEREAS, the acquisition of title to land and/or easements needed for the rights-of-way 9 necessary for the improvements have been lengthy and difficult to estimate in cost; 10 WHEREAS, in order to complete the necessary acquisition of sites and right-of-way I I easements and related legal and appraisal services, it is estimated that an additional $148,000 is 12 required; 1 3 14 WHEREAS, due to the construction schedule of Shore Drive Intersections Project #2- 1 5 133, there is $148,000 available for transfer which will not delay the project; 1 6 WHEREAS, @hese funds will be restored to Shore Drive Intersections Project #2-133 in 1 7 the Proposed FY 1995/96 CIP cycle 1 8 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF 1 9 VIIRGINL4, BEACH, VIRGINLA, that funds in the amount of $148,000 be transferred from 20 Shore Drive Intersections Project #2-133 to Community Development Site Acquisition Project 21 #2-217 in order to fund the increased costs for right-of-way acquisition and related legal and 22 appraisal services. 23 This ordinance shall be in effect from the date of its adoption. 24 Adopted the lidayof - October, 1994, by the Council of the City of Virginia 25 Beach, Virgini'a. APPROVED AS TO CONTENT Walter C. Kra e,, Jr Department of Management and Budget f./SWJ/@d ... q.i..rd - 19 - I-I.5 CONSENT AGENDA ITEM # 38474 Upon motion by I'l@@ Mayor Vess,,ms, seco,,ded by Councilinan Jones, City cou,cil ADIOPTED.- Ordinance to declare EXCESS PROPERTY of the City of rlrginia B-ch, located at 4601 N. Gr,enwell Road it, the peliti,, of JAMES ORSIN and AL4RTH,4 M. ORSINI,, 1 and, authoriziiig the (ity Manager to dispose of same (BAYSIDF BOROU(,'Ii). Voting: 8-0 Council Members voli,,g Ay, Robert K I)ean, William W- Ha-is-, Jr., Barbara M. Henley, Louis R. JOnes, MaY- Meyera F,. obendorf, Na,,cy K Parkcr, Vice Mayor Wllliam D. @evsoms, Jr. and Loui,,, M. @';trayhorti Council Members Voting Nay: Non e COuncil Members Absent: John A. Baum, Linw()()d 0. Branch, III, and John D. Mo,,s October 11, 1994 AN ORDIN"CE DECLARING CERTAIN PROPERTY EXCESS AND AUTHORIZING THE CITY 14ANAGER TO DISPOSE OF SA14E BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA: y of Virginia Beach acquired ownership WHEREAS, the Cit co,ded in Deed 'bed property by Deed re of the following descri Book 1018, at Page 154; and is of the opinion that the WHEREAS, the City council following described property is in excess of the needs of the City of Virginia Beach, COUNCIL OF TI'E IqOW, THEREFORE, BF IT ORDAINED By THE CITY OF VIRGINIA BEACH, VIRGINIA: is hereby i foll,wing described property 1. That the ity Of Virginia declared to be in excess Of the needs of the C Beach and that the City Manager is authorized to convey said property in the manner he deems in the best interests Of the therein any and all easements city of Virginia Beach reserving erty be declared pertaining thereto, and further that such prop ore particularly in excess of the needs of the City anc, is m described as follows: iece or parcel of land All that certain lot, P ts thereon situate in together with all improvemen city of Virginia the Bayside, Borough of the ed as -25' Beach, Virginia and being designat. hat certain STRIp OF PROPERTY To BE VACATED' on t OF 25' plat entitled " plat Sho,in, A PORTION PERTY To BE VAC@TED REMAINING PORTION STRIP OF PRO & BERA L. PARCEL DESIGNATED As "NICHOLAS OF , AREA = 2 1/2 ACS." ON PLAT ENTITLED, TOSCANO TE jAmpICOL & NICHOLAS & -SURVEY MADE FOR ANTIONET 50' ST. E. OF PLEASURE BERA TOSCANO ON SO. SIDE by John E. RD." (M.B. 13, P. 16)., prepared which is HO. Ltd. , a COPY Of Sirine and Associates, t -'A". attached hereto as Exhibi 2. The parcel sha 11 be c,mbined with the adjoining property of the Petitioners into one parcel. to 3. This Declaration of Excess is subject of the reverter rights tO the Petitioners obtaining a release above-referenced strip from the City of Norfolk. SYKES,CARNES BOURDON & AHERN. P C IrrORNEYS AT LAW 4 This ordinance shall be effective from the date of its adoption. Adopted by the Council of the CitY Of Virginia Beach, Oci ober 1994. Virginia, on the day of I D AS TO CONTENT APPROVED AS TO LEGAL SUFFIOIENC@ 4559i SYKES. CARNES, BOURDON & AHERN. P C ATTORNEYS AT LAW 2 N. GREENWELL IROAD (50') NOTE!'): I THIS @LAT IS THE RE@;ll@l Of: n, (FORMERL@ A@ F W I)RIVE) FIELI) 7)tJRVEY. S 83'2,@' E- LAT) 2 AREA OF LAND VACAIED s 83'18'51" E (FIE@D) 4,,473 SO. F-T./O.114 ACRE OLD 1 114.36' (I-IFLD) 3. GPIN NO.: 1479-58- 6568 LARGE I)LF, CON 4 ALIGNMENT OF 25' STRIP OF PIPE Idwy mot PROPERTY WAS ESTABLISHED BY THE PROLONGATION OF PROPERTY LINES AS SHOWN ON PLAT ENTITL.ED "AMENDED RESUB- DIVISION PLAT OF LOT 4 AS SHOWN ON PT..AT ENTITLED "SIJBDIVISLON OF WOC)DBEACH", RECOR[)ED IN MAP BOOK 151 AT PAGE 35. 5. SEE PLAT M.B. 55, P. 19, SHOWING THIS PARCEL AS "TO BE RETAINED BY J(-)HNNIE HALL, 77 966 SQ. FT." -CO C'4 L6 C'4 ro REMAINING PORTION OF 0 0 PARCEL DESIGNATED AS ui NICHOLAS & BERA L. TOSCANO < Ln < 0 0 -i 1.790 ACRES C, a- Ce - 1'7 - 14 ow -0@-RL%I" z r 0 Ln CIT%;@' OF NORFOLK 0 p r) z z CURRc-NTL%:@ < C I T%:" OF VIRGINIA' BEACH ui (D-B !010. P.154) 195.23 7 N/@5'T9 0 0 25.84 /@25.01'/' @/2 0 2. N 85-19'01,' W 2, STRIP OF PROPERTY TO BE VACATED 00 OLD LARGE OLD CONC. PIP 243.83- (FIELD) HWY MON. N 83'23- W (PLAL) N 83-17'00'- W (FIELD) 13 12 NOW OR FORMERLY PINE SHORES @ SAMUEL J.W. GIBSOR (M.B.'48, P.8) PLAT SHOWNG A PORTION OF 25' STRIP OF PROPERTY TO BE VACATED FOR JAMES ORSINI AND MARTHA ORSINI ON REMAINING PORTION OF PARCEL DESIGNATED AS 'NICHOLAS & BERA L. TOSCANO, AREA=2 1/2 ACS.' ON PLAT ENILTLED 'SURVEY MADE FOR ANTIONETTE JAMPICOL & NICHOLAS & BERA TOSCANO ON SO. SIDE 50' ST. E. OF PLEASURE HO. RD.' BAYSIDE BOROUGH - VIRGINIA BEACH, VIRGINIA (M SCALE: 1 "= 50' APRIL 8, 1994 JOHN E. SIRINE AND ASSOCIATES, LTD. SURVEYORS- ENGINEERS- PLANNERS VIRGINIA BEACH, VIRGINIA 0 50 100 150 200 FEET (3RAPHIC SCALE RE\4SED: 6 17 4 PETITION TO DECLARE CERTAIN PROPERTY EXCESS AND TO AUTHORIZE DISPOSAL TO THE CONTIGUOUS PROPERTY OWNER P E T I T I 0 N TO: THE MAYOR AND THE MEMBERS OF THE COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA Your petitioners, JAMES ORSINI and MARTHA M. ORSINI, by counsel, respectfully represent as follows: 1. That Petitioners apply to the Mayor and the Council of the City of Virginia Beach, Virginia, for an ordinance declaring the hereinafter described property to be in excess of the needs of the City of Virginia Beach and to authorize the City Manager to convey the property to the Petitioners upon payment of fair market value as determined by qualified appraisal and in accordance with City policy. 2. That your Petitioners own the property contiguou., to the hereinafter described property and are the only property owner contiguous to said site. And that further the hereinafter described property has no utility unless joined to the contiguous property of Petitioners. 3. The property your Petitioners are asking to be declared in excess of the needs of the City of Virginia Beach so that they may purchase same is hereby described as follows: ALL THAT CERTAIN lot, piece or parcel of land situate in the Bayside Borough of the City of Virginia Beach, Virginia and being designated as "25' STRIP OF PROPERTY TO BE VACATED" on that YKES, CARNES, BOURDON & AHERN, P C A@ORNEYS AT LAW certain plat entitied "Plat Showing A PORTION OF 25' STRIP OF PROPERTY TO BE VACATED ON REMAINING PORTION OF PARCEL DESIGNATED AS "NICHOLAS & BERA L. TOSCANO, AREA = 2 1/2 ACS. " ON PLAT ENTITLED, "SURVEY MADE FOR ANTIONETTE JAMPICOL & NICHOLAS & BERA TOSCANO ON SO. SIDE 50' ST.E. OF PLEASURE HO. RD.'- (M.B. 13, P. 16), prepared by John E. Sirine and Associates, Ltd., a copy of which is attached hereto as Exhibit 'A"'. GPIN NO.: 1479-58-6568 4. That no inconvenience will result to any person or property owner by reason of the sale of the hereinabove described property. WHEREFORE, your Petitioners pray that the Mayor and City Council of the City of Virginia Beach, Virginia, declare the hereinabove described property to be in excess of the needs of the City of Virginia Beach and to authorize the City Manager to convey same to your Petitioners upon payment to the City of Virginia Beach, for the fair market value of said property as determined by qualified appraisal. Respectfully submitted, JAMES ORSINI and MARTHA M. ORSINI By- Of Counsel R. Edward Bourdon, Jr., Esquire KES, CARNES, BOURDON SYKES, CARNES, BOURDON & AHERN, P.C. & AHERN, P C, Pembroke One, Fifth Floor ATTORNEYS AT @W Virginia Beach, Virginia 23462 (804) 499-8971 4558i 2 THIS DEED OF VACATION AND QUITCLAIM is made this day of May, 1994, by and between the OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia, "GRANTOR", party of the first part, and JAMES ORSINI and MARTHA M. ORSINI, husband and wife, "GRANTEE", parties of the second part, 4601 North Greenwell Road, Virginia Beach, Virginia 23455. W I T N E S S E T H That for and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, the party of the first part hereby releases, vacates, and forever QUITCLAIMS unto the party of the second part its right and interest, if any, in the following described property: All that certain lot, piece or parcel of land situate in the Bayside Borough of the City of Virginia Beach, Virginia, and being shown as the 4,973 sq. ft./ 0./14 acre hatched area on that certain plat entitled, "PLAT SHOWING A PORTION OF 25' STRIP OF PROPERTY TO BE VACATED ON REMAINING PORTION OF PARCEL DESIGNATED AS 'NICHOLAS & BERA L. TOSCANO, AREA = 2 1/2 ACS. ' ON PLAT ENTITLED 'SURVEY MADE FOR ANTIONETTE JAMPICOL & NICHOLAS & BERA TOSCANO ON SO. SIDE 50' ST. E. OF PLEASURE HO. RD. (MB 13, P. 16) SCALE 1'1=50' APRIL 8, 1994," prepared by John E. Sirine and Associates, Ltd., a copy of which is attached hereto as Exhibit "A". It being a part of the same property conveyed to GRANTOR, by Deed of City of - 1 - Norfolk, a municipal corporation of the State of Virginia, dated - 1 19 1 and recorded in the aforesaid Clerk's Of l@c@ in Deed Book at Page GPIN NO.: This conveyance is made subject to conditions, restrictions, easements, and reservations of record in the chain of title, if any, constituting constructive notice thereof. Witness the following signatures and seals: CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia By: City Manager/Authorized Designee of the City Manager (SEAL) ATTEST: City Clerk 2 STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: I, a Notary Public in and for the City and State aforesaid, do hereby certify that I City Manager/Authorized Designee of the City Manager of the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia, whose name is signed to the foregoing writing, bearing date the day of 1 19 94 , has acknowledged the same before me in my City and State aforesaid. Given under my hand this day of 19 94 . Notary Public My Commission Expires: STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: I , I a Notary Public in and for the City and State aforesaid, do hereby certify that Ruth Hodges Smith, City Clerk of the CITY OF VIRGINIA BEACH, a municipal corporation of the Commonwealth of Virginia, whose name is signed to the foregoing writing, bearing date the day of -, 1994, has acknowledged the same before me in my City and State aforesaid. Given under my hand this - day of 1994. Notary Public My Commission Expires: 4563i 3 LOCATION MAP SEE GRID El I BAY LANDING I 2 LAKESEOGE CO IA,kY LTAKL AEfil n - 20 - Ltem ii--i I PUBLIC HEARING ITEM # 38475 PLANNING Mayor Meyera E. Oberndorf DECLARED a PUBLIC HEARING on: PL,4NNING (a) 117RGINL4 BEACH ORTHOP,4EDIC,4SSOCIATES CONDITIONAL CHANGE OF ZONING (b) TEA CELLULAR NETWORK SERI,7CES CONDITIONAL USE PERMIT October 11, 1994 - 21 - PUBLIC HEARING ITEM # 38476 PL4NNING Attorney Morris Fine, 2101 I,rks, I'hone: 422-1678, represented the applicant UPon motion by Council Lady @5trayhorn, seconded by Vice Mayor Sessom, City Council ADOPTED Ordinance upo@ applicati(,n of "7RGINL4 BEACH ORTHOPAEDIC ASSOCIATES and CHARLES S. FRIEDMAN for a Conditz nal s,,cat,,,n: ORDINANCL UPON APPLICATION ()],' P7RGINL4 BEACH ORTHOPAEDI(@ ASSOCIATESANDCHARLLS FRIEDMANFORA CONDITIONAL CILIN(I'E ()F ZONIN(,' I)I@TRICT CI-4 5SIFICATION FROM R- 5I) to 0- I Z070941430 BEITHEREBYORDAINI,,'DBY7TII,,'COUNCILOI"TIIP-('IIYOFVIR(;INL4BF,4CH,VIRGINIA Ordinance upon application of Virgi?iia Beach Orthopaedic Associates and Charles S. Friedmn for a Conditional Change of Zoning District Classification from R-5D Residential Duplex District to 0-1 Offlce District on certain property located on the west side of Kempsille Road, south of Canterford Lane. 7he proposed zoning classification change to 0- I is for offlce land use. 7he Comprehensive I'lan recommends use of this parcel for high density residential at densities that are compatible with single-family use in accordance with other Plan policies. Said parcel is located al 1445 Kempsville Road and contains 34,848 square feet more or lcss Kl,, M15PWILE BOR()U(,'IL The following conditions Yhall b(- r('quired. 1. Agreemerit (!ncompassing proffers shall be recorded with the Clerk of the (,ircuit Court and is hereb), tnad(, a part of the record. The Ordinance shall be effective iii accordance with Section 107 (O of the Zoning Ordinance. Adopted by the Council of the City of Virgitiia Beach, Virgirtia, on the 'Ievenlh o Octo er N ete October 11, 1994 - 22 - em -J. PUBLIC HEARING ITEM # 38476 (Continued) PLANNING Voting: 8-0 Council Members Voting Aye: John A. Baum, Robert K Dean, William W. liarrisort, Jr., Barbara M. Henley, Mayor Meyera I,. Oberndorf, Nancy K I'arker, Vice Mayor Wzlliam D. Sevvomy, Jr. atid louisa M. @trayho,ri Council Members Voting Nay. Non e Council Members Abstaining: Louis R. Jones Council Members Absent: Liriwood 0. Braitch, III and John D. Voss Councilman Jones ABSTAINED av he owiis aii office building itext to the application. October 11, 1994 - 23 - e- II- ].b PUBLIC HEARING ITEM # 38477 PLANNING CorresPOndence fi'om J. Randall Royal, rice President - Engi,,i,ering Services, dated September 8, 1994, -qu-ti,,g H7THDRAWAL is hereby made a part of the rec()rd. UP- motion by Councilman Dean, seconded by Vice Mayor Sessoms, City Council ALLOWED WITHDP-4WALaftheApplicatiotiofTEACELLUL,4RNETWORKSERVICESfora ndi-onal Eermit: ORDINANCL UPON APPLICATION OP TL4 CE] I UL4R NE7TVOPK SERVICES FOR A CONDITIONAL USP-' I'ERMI7'FOR A 150-FOOT COMMUNICATIONS TOWER Ordinance upon application of TEA Cellular Network 5ervices for a Conditional Use Permit for a 150-foot communication tower on certain propertY located 2750 feet more or less west of General Booth Boulevar(4 2640 feet more or less north of Londott Bridge Road Said parcel is located at 2385 Loiidon Bridge Road and colitallis 10 acres. I'RINCESS ANNF. BOROU(;II. Voting: 9-0 Council Members Voting Aye: John A. Bawn, Robert Y- Dean, William W Ilarrison, Jr., Barbara M. Henley, Louis R. Joites, Mayor Meyera E. Oberridorf, Nancy K Parker, Vice Mayor William 1). @essoms, Jr. and Louiva M. .5trayhorn Council Members Voting Nay: Non e Council Members Absent: Linwood 0. Braiich. III, aild Johil D. Movv October 11, 1994 24 - APPOINTMENTS ITEM # 38478 Up- NOMINATION by Vice Mayor Sessoms, City Council APPOINTED: BOARD OF BUILDING CODE APPEALS ELECTRICAL DIVISION Wade Malaby Virgiriia Power Uiiexpired term pluv 2-yearv thru 12131196 Voting: 9-0 Council Members Voting Aye. John A. Baum, Robert K Dean, Wzlliam W. liarrison, Jr., Barbara M. Henley, Louis R. Jones, Mayor Meyera ],*. Oberndorf Nancy K Parker, Vice Mayor William D. .5essoms, Jr. and Louisa M. .5trayhorti Council Members Voting Nay: Non e Council Members Absent: Linw()od 0. Brancil, III, and John D. Vovs October 11, 1994 - 25 - Item II-K2. APPOINTMENTS ITEM # 38479 Upon NOMINATION by rice Mayor.Scssoms, City (ouncil APPOINTED: REk7EW AND ALLOCATION COMMITTEE (COIG) Dr. .5uzanne Dandoy, MIIII 7'crm: Tenure as Ilealth I)irt-cf(ir Voting: 9-0 Council Members Voting Aye: John A. Baum, Robert K Dean, William W flarrison, Jr., Barbara M. Henley, Louis R. J()tles, Mayor Meyera E. Oberiidorf, Nancy K. Parker, rice Mayor William I). @essoms, Jr. and Louisa M. Strayhorii Council Members Voting Nay: None Council Members Abseiit: Linwood 0. Branch, III, and John D. Moss October 11, 1994 - 26 - e- -K3. APPOINTMENTS ITEM # 38480 BY CONSENSUS, City Council PESCHEDULED the following APPOINTMENTS.- COMMUNITY DEVELOPMENT CITIZEN ADVI,@ORY COMMI7TEE (CAC) HISTORICAL RE117EW BOARD PUBLIC LIBRARY BOARD TRANSPORTATION SAFETY COMMISSION October 11, 1994 - 27 - Item II-L.I. REAPPORTIONMENT ITEM # 38481 Councilman Moss distributed in City Council's Agenda Packages, a proposed Charter Amendment to implement the Reapportionment Referendum, as approved by the voters. Councibnan Baum expressed c(@ncern for the lack of residency requirements in Virginia Beach with regard to a particular Borough. America was meant to be a representative democracy with checks and balances, not one man, orie vote. 'The Senate has two Senators from each State. Ihe Council of Civic Organizations has become a partisan political action Committee. Their newsletters are quite personal Councilman Baum did not believe the majority were in favor of a ward systent. Ilice Mayor Sessoms expressed ((@ticerri that under the proposed new system, the Pungo and Blackwater Boroughs would not be repres(,iited. 'Ihese Iloroughs (@omprive an acreage of approximately one-half the City. Council Lady Strayhorn advised, fi)r marty years, ntinorities have been mivsing from the City Council. Reapportionment, whether it be through the Ward Systenz or At-Large, every group should have representation. Council Lady Strayhorn believed a City Council corisisting of only 7 members, all elected at the same time, would be ideal. Ilowever, as the voters approv,ed the Reapportionment Referendum she will vote for this Charter Amendmeiit. Councilman Dean did not believe the Constitution reflects that land votes. People vote. 7he City Council does care about their immediate constituents. Councilman Bawn has been in office over 22 years. Individuahzed representation is already at the State level. Councilman Dean advised he can vote for only one Member of the House and )ne Senator. Ile Attorney (;eneral advised a minimum residency requireinent was unconstitutional. Councilman Dean is not aware ()f any City Council Member who does not care about the entire Cit), of Virginia Beach, whether or )i(,t they represelit a particular Borough, or serve at-large. Mayor Oberndorf referenced her appoinitnetit of the Mayor's ConimiUee for Reapportionment. Mayor Oberndorf did not express her views nor did she influence this (,@ommission regarding their final product. 7he Chairman was Attoryiey Doyiald IL Clark who presented the Final Report on September 24, 1990. The City Council voted to accept the report, riot adopt same. The Citizens received over 28,000 signatures to have the issue of Reapportionment placed on the Ballot. Mayor Oberndorf read the Notice of Public Hearing into the Record: "Iht! Couticil for the City of Virginia Beach, Virginia, will hold a Pubhc Hearing on 7hursday, October 25, 1994, at 6:00 P.M., pursuarit to Section 15.1-835 of the Code of the City of Virgirtia Beach to determirie if the citizens of the City of Virgirtia Beach desire the General Assembly to amend the City's exivting Councilnianic Electoral Plan. " 'Fhe proposed amendment to the City Charter would provide for divisiopi of the City into severi districts of approximately equal population effective July 1, 199$, with veven members to be elected only by the voters (@f their respective districts, plus three members and th(, Mayor to be elected by and from the (,'ity al -large. Council Lady Henley advised she persoiially did not favor a change to a Ward system, but as the citizens approved same, she would vot(, to forward thi@v Charter Amendment to the (;eneral Assembly. October 11, 1994 - 28 - - I-L LEGISL4TIVE PAcF,4GE ITEM # 38482 7he DR4FT 1995 Legisiative Package is hereby made a part of the record. CitY Council's BreaAfast with the City's Legislators has been SCIII','DULFD for October 20, 1994, 7.30 A.M. at the Pavilion. October 11, 1994 - 29 - I-N. ADJOURNMENT ITEM # 38483 Mayor Oberndorf DECLARED the City Council Meeting ADJOURIVED at 3:55 P.M. ----------- Chief Deputy City Clerk -- ---------------- ------------------------- Ruth Hodges Smith CMCIA4E Meyera E Obcrtidorf City Clerk Mayor City of Virginia Beach Krginia October 11, 1994